AM August 2014 preview

TWITT

ERTABLETS

SMARTPHONES

DIGITAL MAGAZINES

FACEBOOK

AUTOMOTIVE MANAGEMENT

www.am-online.com August 2014 £8.00

FACE TO FACE / P 3 6

HR Owen’s Chris Harris on enticing customers with email and events

E N G A G I N G B U Y E R S / P4 3

Traditional methods can still pay off for digital-age dealers

B I G D ATA / P 19

Data is at the heart of marketing, says Audi UK’s Nick Ratcliffe

21ST CENTURY

MARKETINGDigital media has radically changed how dealers

reach, analyse and sell to their customers.

Is your business up to speed?

T H E M A R K E T I N G I S S U E - S TA R T S ON PA GE 19

Co-sponsors:Headline sponsor:

Tuesday 21 OctoberTelford International Centre, TF3 4JH

For more details, or to book visit www.usedcarconference.co.uk

Success in used car sales has long been the

bedrock of a successful dealership. Today, the sales

environment is undergoing a transformation that is

redefning the long-established sales model. Vital

proft centres in F&I are under scrutiny and

consumer trends ensure that understanding and

adapting to a digital sales model is imperative.

The current sales model must change and adapt.

The AM Used Car Market Conference 2014 sees

experts presenting their thoughts and best practices to

help dealers adjust to the rapidly changing conditions.

Developed with dealers for dealers, the conference is

designed to provide pragmatic advice and practical

‘take-aways’ that can help turn the threats

surrounding today’s used car operation into

tomorrow’s opportunities.

The AM editorial teamEmail: [email protected]: www.am-online.com

Is your digital marketing fit for purpose?

W

Jeremy BennettEditor

Tim RoseManaging editor

Tom SeymourContent manager

welcome

[email protected] am-online.com/linkedinam-online.com @amchatter facebook.com/automotivemanagementUK

hy should HR Owen be different to any other motor retailer in the 21st century? Any franchised dealer should truly value the contact it has with its customers, should ensure every marketing communication is targeted and valid, should

ensure the transition from in-market to actual purchase is smooth and seamless. Is the only exception for HR Owen that it is catering for London’s high net worth individuals and the starting price of its new cars is more than double that of a BMW 1 Series?

This is why HR Owen’s strategy is “experience is everything”. With former Nokia global brand strategist Chris Harris in charge of marketing, the motor retailer is engaging with customers in an intelligent, data-driven way. You’ll read in our interview on page 36 how the dealer group is smashing industry averages through a consistent group approach, segmentation of its customer data and analysis of what those segments really want to hear.

Be inspired by Harris, and then, armed with insight from our Marketing Toolkit and Customer Engagement features on pages 31 and 43, check your marketing strategy is fit for the 21st century.

am-online.com August 2014 3

o u R E x p E R T C o n T R i B u T o R S

Jay nagleyA former business analyst with Porsche GB, he now runs Redspy Automotive, offering insight and

analysis into motor retail trends.This month (p23), he says car

manufacturers need to face the reality outside their organisations and how Vms such as Vauxhall are trying to break out of listening to the groupthink within.

professor Jim SakerAs director of the centre of Automotive management at loughborough University’s Business

School, Saker is a key figure behind the drive for management recognition and skills in the motor retail sector.

This month (p42), he writes that while fans of the english football team will accept disappointment after disappointment, PcP car buyers will not be so forgiving.

Hugh Dickerson Google UK’s senior industry head of automotive and an AM Awards judge, Dickerson is

responsible for developing digital brands in the UK.

This month (p47), he offers car manufacturers and dealers his tips for online video success.

Dr Richard parkinAs director of valuations & analysis, Parkin coordinates the editorial and analysis team at

Glass’s. Prior to joining Glass’s in 2012, he spent six years as a strategy consultant at ernst & Young, with a focus on the automotive industry.

In this issue (p24), he examines the dynamics of used car sales by region and why Scottish dealers are among the most profitable.

Insight

31 The21st-centurymarketingtoolkit

The key technology, products and channels that will support dealers’ new and used car marketing and longer-term customer relationship strategy.

36 Facetoface:HROwen Marketing director Chris Harris

explains how the UK’s largest luxury and supercar dealer mixes events, email and CRM software to entice and analyse potential customers.

42 Viewfromthebusinessschool

While fans of the English football

In this issue August 2014

Yournews

7 Newsdigest This month’s round-up includes a

fourth consecutive record-breaking year for John Clark Motor Group, acquisitions for Cambria and Marshall, and average dealer profitability dips slightly.

Marketintelligence

12 Newcarregistrations A 6.2% increase in new car registrations in June ends the best half-year total since 2005.

12 Usedcarvalues Average used car values decreased

in June, according to BCA, down 1.6% on the month before.

15 Finance Lenders are urging dealers not to

ignore used car sales in preparing for plate-change September.

Yourfeedback

26 AMpoll Readers share how much of their

marketing budget they put into digital.

4 August 2014 am-online.com

36FACE To FACE HR oWEN MARKETiNG diRECToR CHRiS HARRiS

Analysis

19 Buildingtheidealcustomerprofile

Audi is unifying the disparate bits of information held by the manufacturer and its dealers and putting it at the centre of its marketing strategy, says UK head of marketing Nick Ratcliffe.

23 Movingbeyondgroupthink Jay Nagley on how manufacturers

like Vauxhall are finally embracing reality outside the corporate HQ.

24 Usedcarsalesbyregion Glass’s dr Richard Parkin looks at

why Scottish dealers are among the most profitable in the UK.

For the latest motor retail industry news, visit am-online.comSign up to get AM news daily by email: am-online.com/newsletter

Comingsoon InSeptember’sissueofAM Face to Face with Knights BMW and

Mini aftersales director ian dow, going back to basics on aftersales and the Citroën C4 Cactus reviewed.

66

19

58

BUiLdiNG THE idEAL CUSToMER PRoFiLE HoW AUdi UK USES iTS dATA

JEEP CHERoKEEANoTHER PoSiTiVE STEP FoR JEEP

Showroom

56 JeepCherokeeJeep expects the new, higher-quality Cherokee to almost triple its annual registrations.

58 MitsubishiOutlanderPHEVHybrid undercuts the competition with a diesel price match.

61 MitsubishiASXMitsubishi is showcasing its crossover in a TV documentary sponsorship deal.

62 Mazda6TourerMazda’s Skyactiv engines offer efficiency alongside performance.


Alphera Financial Services .......................15

Andrews Aldridge........................................45

ASE ....................................................................10

Audi ...............................................................9,19

Autoglym .........................................................52

AutosOnShow ................................................32

Black Horse ....................................................15

Cambria Automobiles ............................7,32

CitNow .............................................................32

Codeweavers ...........................................16,32

Drayton Group .................................................9

FLA ....................................................................17

Frontline Solutions .......................................16

GardX ................................................................51

Gforces ............................................................32

GoldSand Digital ...........................................45

Hendy Group ....................................................7

HR Owen .........................................................36

iVendi ................................................................32

JCT600 ................................................................9

Jemca ........................................................31,44

Jewelultra .......................................................51

John Clark Motor Group ..............................7

John Martin Group .........................................7

Lings ....................................................................7

Lookers ...........................................................44

Maindealerdiscount.com ..............................7

Manheim ...................................................31,45

Marketing Delivery ................................31,43

MarketingFile ...................................................7

Marshall Motor Group ...........................9,43

Mitsubishi ..........................................................9

MotoNovo.........................................................15

Northridge Finance ......................................16

Paintseal ..........................................................51

Permashine ...................................................52

PwC ...................................................................31

Q8 Oils ...............................................................9

Razoom ...........................................................32

Sky ................................................................7,32

SsangYong .........................................................9

Supagard ........................................................52

Sutton Park Group .........................................9

Vauxhall ...........................................................23

VW Commercial Vehicles ............................9

D E A L E R S A N DS U P P L I E R SI N T H I S I S S U E :

team will accept disappointment after disappointment, PCP car buyers will not be so forgiving, writes Prof Jim Saker.

43 Haveyoubalancedyourmarketingbudget?The growing dominance of digital media should not push dealers to ignore more traditional marketing methods.

47 ViewfromGoogle Google’s Hugh dickerson offers

car manufacturers and dealers his tips for online video success.

51 PuttingtheshinebackintopaintprotectionSuppliers are investing in developing next generation products and new training materials.

31 21st CENTURY MARKETiNG MAKE THE MoST oF THE LATEST diGiTAL TooLS


F O R D A I LY N E W S , V I S I T: w w w . a m - o n l i n e . c o m

T O G E T A M ’ S F R E E D A I LY N E W S L E T T E R , V I S I T:w w w . a m - o n l i n e . c o m / n e w s l e t t e r

NEWS DIGEST9 Marshall acquisition

Marshall Motor Group has acquired the Hammond Land Rover business in Halesworth, Suffolk.

Dealer profitabilityThe average UK motor dealership made £5,000 profit in May, down from £7,700 last year.

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T H E N E W S Y O U C A N ’ T A F F O R D T O H A V E M I S S E D

J O H N C L A R K M O T O R G R O U P

£3m profit boost marks record year for John ClarkJohn Clark Motor Group has announced a fourth consecutive record-breaking year in 2013, with turnover increasing 33% from 2012 to £470 million.

The latest figures from the group, which has 21 car dealerships across the east of Scotland, show an operating profit before interest rise from £5.7m to £8.9m and a 68% rise in group pre-tax profit from £4.4m to £7.4m.

It was the first time in the group’s history that unit sales passed 20,000. New vehicle sales volumes increased by 31% to 11,101 units, while used vehicle sales grew by 27% compared with 2012, to 9,023 units.

2013 was a year of expansion for the company. It acquired four new businesses, two Land Rover dealerships, in Cupar and Perth, and two Jaguar branches, in Edinburgh and Perth, introducing the Jaguar franchise to the group for the first time. This acquisition made an overall positive contribution to the trading results, the group said.■ Read ‘Scots give dealers in the South East a run for their money’ on Page 24

H E N D Y G R O U PMulti-franchise dealer group Hendy is using innovative market techniques made available by digital television to target consumers in its southern England heartland.

It has previously employed televi-sion adverting, but in a blanketed, one-message approach. However, advances in technology mean it can now single out the type of person it wants to see the ads by location or affluence, for example, how many times it wants them to see the ad, at what time of day and during which programmes. The capability is being provided by Sky

and its AdSmart system. Mark Busby, Hendy new car sales and marketing director, is managing the campaigns.

“In the next campaign we have planned, I have taken Experian Mosaic data providing demo-graphic, lifestyle and behavioural data, plus Sky’s information on the viewing habits of its customers to identify 91,000 affluent households that will be shown our ad five times over a four-week period,” he said. “This will mean the ad will be viewed 334,000 times at a cost of about 3.6 pence per advert.” ■ Read ‘Your 21st-century marketing toolkit’ on Page 31

C A M B R I A A U T O M O B I L E SCambria Automobiles has acquired a Land Rover and Jaguar dealership from Lookers in a £10.47m deal.

It is Cambria’s first Land Rover franchise and brings its Jaguar portfolio to six sites, four of which are in or near Greater London. Cambria has acquired the trade and assets of Lookers’ Hadley Green Garages site in Barnet, North London, which Lookers gained when it acquired parent group Colbornes in March for £33.6m.

I N B R I E F

H U G H M C M A H O NHugh McMahon, former Lomond Audi owner until its sale to Lookers in 2012, has acquired Scotland’s only Rolls-Royce and Aston Martin fran-chises from John Martin Group’s Murray Motors division in a £3 million deal. McMahon will run the £20m turnover business in Edinburgh with his son Chris. The site will operate under the name Rolls-Royce and Aston Martin Motor Cars Edinburgh.

L I N G SLings in Lowestoft has taken on the Mitsubishi franchise. The Mitsubishi dealership is part of a multi-million refurbishment at the five-acre site and it will open on July 28. Lings employs 95 people across five sites with Honda and bike showrooms in Lowestoft, Watton, Harleston and two in Ipswich.

M A R K E T I N G F I L EMarketingFile has launched Touchpoint – a multi-channel direct marketing system . The web-based system enables dealers to analyse and target existing customers and source private buyer and fleet prospect lists. Manufacturers, dealer groups and agencies can set up creative templates for dealer-ships, which can schedule email and SMS delivery and send personalised direct mail by digital print and post.

M A I N D E A L E R -D I S C O U N T. C O MMaindealerdiscount.com, a website that matched dealers with extra service capacity and customers looking for a discount, is to cease trading. Managing director Darren Bone said he had not been able to make the necessary step change in the number of signed-up dealers and service bookings .

NEWS DIGEST

S U T T O N P A R K G R O U PAldi has stated its intent to build and open a new store in Coventry despite Sutton Park Group currently occupying the space with its multi-franchise dealership

Aldi said it is yet to submit a planning application for the location on Shultern Lane, which currently houses Sutton Park Group’s Renault, Kia and Fiat franchises, but is in early negotiations with the land-lord to demolish the showroom. A statement on the Sutton Park Group website said that in accordance with its legal right to renew its lease, it has been in advanced negotiations with the landlord to do so and therefore finds the plans “somewhat confusing” and Aldi’s announcement was “premature”.

M I T S U B I S H IMore than half (60%) of the Mitsubishi dealer network has signed up to be ‘company car specialists’, which means they have been specifically

trained to help company car drivers who are consid-ering a Mitsubishi as their next company car.

The catalyst for the scheme has been the increase in enquiries and sales to company car owners for the newly-launched Outlander Plug-in Hybrid Electric Vehicle (PHEV).

Any of the existing Mitsubishi dealer network can choose to become a ‘company car specialist’. To do this they need to have a dedicated and trained ‘company car specialist’ and understand the requirements of a company car driver.


T O R E A D A M ’ S D A I LY N E W S L E T T E R , V I S I T: w w w . a m - o n l i n e . c o m / n e w s l e t t e r

D R AY T O N G R O U P Drayton Group has made a multi-million pound investment in a new-build home for Mercedes-Benz of Shrewsbury, becoming the first site outside of Germany to bear the new Mercedes-Benz showroom style.

Central to the new design is the appearance of a large, illuminated Mercedes-Benz star against a black background on the showroom exte-rior that will face the major approaches, and will clearly identify the business to customers. The 24-car showroom is double the size of the former premises, and features lounge areas where customers can work or watch their car being serviced on screens relaying activity from the retailer’s 14-bay workshop. A display of more than 60 approved used Mercedes-Benz cars and improved customer parking are among the other bene-fits resulting from the move.

V O L K S W A G E N C O M M E R C I A L V E H I C L E SVolkswagen Commercial Vehicles UK has launched a new 10-point customer service programme across its dedicated network of dealers to make sure it can deliver on its servicing promises.

The new promises will be delivered by Volkswagen’s commercial vehicle network of 71 sales and service centres, as well as 28 authorised repairers.

Kevin Rendell, Volkswagen CV UK head of service & parts operations, told AM that after joining the busi-ness in February 2013, he reviewed how its dealers were performing on the previous service programme and adjusted it following customer research .

Rendell said: “We were actually already offering a lot of what customers were asking for in the feedback we received, but we just weren’t talking about it enough.

“It will also work as a sales tool for the network. We’re not just selling vans; we’re selling a complete service package .”

M A R S H A L L M O T O R G R O U PMarshall Motor Group has acquired the Hammond Land Rover business in Halesworth, Suffolk.

It was Marshall’s second acquisition of July. Days earlier, it had bought a Volvo business in Bishops Stortford from Regent Automotive Group, which trades as Volvo Cars London, making Marshall Volvo’s largest UK partner, with seven sites.

The addition of the £30 million turnover Halesworth business will take the number of Marshall Land Rover dealerships to six and is part of a wider strategic development to represent Land Rover in Suffolk.

Marshall has represented Land Rover for 40 years and its market area now covers most of the East of England from the M1 to the coast, with dealerships in Lincoln, Melton Mowbray, Peterborough, Bedford, Cambridge and now Halesworth.

P E O P L E N E W S

C I A N O ’ B R I E N Cian O’Brien joins Audi UK as its new head of sales operations on

September 1. He succeeds Paul Sansom, who has been promoted to managing director of Audi South Africa.

J E R E M Y D I N E E N Q8Oils has appointed Jeremy Dineen as direct sales manager for the UK automotive and manufacturing divisions. He has worked with Unipart Automotive and Euro Car Parts in the UK, as well as Fast Track in the United Arab Emirates.

J I M H U T C H I N S O N Mitsubishi has reorganised and expanded its field management with

the appointment of Jim Hutch-inson as its new area manager. Lucy Allberry and Mark Grant have also joined Mitsubishi’s corporate sales team.

F R A N K T U R N E R Bradford-based dealer group JCT600 has appointed Frank Turner as national broker and corporate accounts manager for its growing fleet operation. Turner joins from the broker division of Lease Options NI, where he was sales director.

I A N A R M S T R O N G Ian Armstrong, a former director and dealer principal of East Midlands car

dealer group Unity Automotive, has joined SsangYong UK as its dealer commercial manager for the South. Armstrong takes the role vacated by Neil Pemberton, who was appointed technical services and aftersales manager.

M I C H A E L H U N T Marshall Motor Group has appointed Michael Hunt as head of aftersales development. Hunt joins from Evans Halshaw where he was head of after-sales for the past six years.

For further details, please visit www.amdigitaldealer.co.uk

DIGITALDEALER CONFERENCE 2014

Headline sponsor:

The Heritage Motor Centre, Gaydon

This conference aims to deliver easily digestible ‘chunks’ whilst alsothrowing a few curved balls to help dealers maintain their momentumand avoid becoming bogged down in the sheer volume of information,

innovation and options available in the digital sphere.

As well as marketing and social media, the conference looks at thewider aspect of digital including latest technology, data and security.

SAVE THE DATE: 4 September 2014

Masterclass sponsors:

��

AM PROMOTION DIGITAL DEALER CONFERENCE

oday’s automotive retail environment is domi-nated by digital. It is vital to understand how today’s consumer wants to communicate and, more importantly, engage with your business as well as the latest technology that drives the

processes to deliver the best customer experience.AM’s Digital Dealer Conference has been a sell-out every

year and demand is already high for this year’s event, which takes place at The Heritage Motor Centre, Gaydon, Warwick-shire, on Thursday, September 4.

The conference gathers a host of experts to help you keep pace in a constantly shifting and rapidly progressing digital landscape.

As well as highly charged stage presentations, Digital Dealer includes workshops and the AM Digital Fair, made up of limited but carefully selected trade stands .

The essential guide to the digital landscape

P L E N A R Y S P E A K E R S

This year’s event sees seven expert speakers take to the main stage, with five already confirmed. Their topics cover the demise of organic reach of social media; the connected car and the connected consumer; the unstoppable growth of mobile and m-commerce; the story of how one retailer transformed its city centre dealership into a rural destination business; and creating a contemporary retail network for the digital age.

Ian Plummer Head of sales operations, Volkswagen UK

Henry Williams Managing director, Williams Automobiles

Alex Kozloff Head of mobile, Internet Advertising Bureau (IAB)

Marshall Manson Managing director, EAME, Social@Ogilvy Hugh Dickerson Industry manager (automotive), Google

Tickets are available to dealers and manufacturers. To book, please contact Emma-Louise Kinnaird on 01733 395133, email [email protected] or visit www.amdigitaldealer.co.uk

W H Y Y O U S H O U L D AT T E N D

■ Stay ahead in a fast-paced digital retail arena■ Thought-provoking and jam-packed content to enhance and extend your digital know-how■ Tangible and practical advice, which can be readily implemented on return to your dealership■ Benchmark your mobile strategy against some of the biggest brands ■ Understand how social media reach is evolving■ From online to showroom: how one manufacturer is aiming to achieve virtual and real integration■ Digital as a sales driver learn the lessons from one dealer’s reinvention of its business■ Get under the skin of the connected consumer■ Get under the bonnet of the connected car■ Stake your place in today’s digital retail environment to safeguard tomorrow’s success

W O R K S H O P S

Delegates will have even more choice of work-shops to attend at this year’s conference. Eight sessions (Marketing Delivery will run twice) will be held, with carefully selected expertise suppliers providing insight into their digital niches covering topics such as analytics and measurement; content creation; and the marketing mix. Confer-ence-goers will be able to attend two workshops.

Jeremy Evans Managing director, Marketing Delivery Customers shift effortlessly between traditional and new media and expect dealers to do the same .

Terry Hogan Managing director, Motoring.co.ukHow to get half-a-million social visits in one week with fresh, unique and engaging content .

Luke Carter Head of search, Manheim Retail Services Digital marketing brings people and information together online, enabling dealers to multiply visits, optimise conversions and drive sales.

Ali White Marketing and sales director, Calltracks Getting the most from Google Analytics and understanding how Google Universal can provide a holistic marketing measurement view.

Peter McCullough Managing director, RAC Cars Exploring online buyer behaviour and the trade-off between ease of use and conversion.

Andrew Howells Chairman, CitNOWHow to incorporate video in everyday work practices to boost the bottom line.

Node 4 IT masterclassHow applying the latest IT thinking and technology can enhance a business proposition. With Sean Booth, managing director of Parkway Volkswagen.

T

September 4th, 2014 The Heritage Motor

Centre Gaydon

market intelligence t h e n e w s i n d e p t h

16Finance

Dealers get a clear message from lenders in the run-up to the September plate-change: Don’t lose focus on used car sales.

need to know n half-year total 10.6% up on 2013n Alternatively fuelled-vehicle registrations up 51.3% to 23,337

n e w c A r r e g i s t r At i o n s

6.2% June rise ends best half-year total since 2005228,291 new registrations in June takes six-month total to 1,287,265 units

tBy Tim Rose

here were 1,287,265 new cars registered in the first six months of the year – a 10.6% rise and the best half-year total since 2005.

the Society of motor manufac-turers and traders said consumer demand for efficiency has driven alternatively fuelled-vehicle registra-tions up 51.3% to 23,337 units year-to-date.

the Uk’s new car market is on track for 2.4 million new car registra-tions in 2014, up more than 6% on last year.

Mike hawes, sMMt chief execu-tive, said, “improving economic conditions have helped propel the Uk new car market to a strong first half-

v o l u M e s p l i t

June Total Diesel Petrol AFV Private Fleet Business2014 228,291 117,411 106,720 4,160 101,615 113,859 12,8172013 214,957 104,671 107,155 3,131 96,868 107,877 10,212% change 6.2% 12.2% -0.4% 32.9% 4.9% 5.5% 25.5%Mkt share ‘14 51.4% 46.7% 1.8% 44.5% 49.9% 5.6%Mkt share ‘13 48.7% 49.8% 1.5% 45.1% 50.2% 4.8%

Year-to-date Total Diesel Petrol AFV Private Fleet Business2014 1,287,265 642,873 621,055 23,337 623,640 602,113 61,5122013 1,163,623 570,745 577,451 15,427 557,425 555,543 50,655% change 10.6% 12.6% 7.6% 51.3% 11.9% 8.4% 21.4%Mkt share ‘14 49.9% 48.2% 1.8% 48.4% 46.8% 4.8%Mkt share ‘13 49.0% 49.6% 1.3% 47.9% 47.7% 4.4%


used car values in June stalled, according to BcA, the uk’s largest motor auction group. Average values fell to £7,476 from £7,597, a month-on-month decrease of 1.6%. ex-fleet cars averaged £9,448, a fall of £89, or 0.9%, compared with May. however, the figure was £588, or 6.6%, up year on year. part-exchange car values fell faster since May, dropping 1.8%, or £75, to £3,973, although the average remained 7.6%, or £281, ahead compared with June 2013.

Av e r A g e u s e d vA l u e s B y s e c t o r

r o l l i n g -y e A r v o l u M e s s i n c e J A n 2 0 12 A n d q u A r t e r ly g r o w t h r At e s t o d At e

year performance, with registrations up 10.6% on the same period in 2013.

“the overall market has risen faster than we were expecting but, after a bumper march, growth is showing signs of stabilising around our forecast level.”


market intelligence New car registrations

B i g g e s t F A l l e r s

y e A r t o d At e

Mg’s management has something to smile about now we’re past the mid-year point. the brand, celebrating its 90th year in 2014, has already surpassed its 2013 registrations total thanks to compelling offers on its competitive Mg3 supermini. its growth is also putting it under consideration by more retailers – it took on its 50th dealer this month and aims for 80 by year-end.

similar success is also being enjoyed by Maserati and ssangyong. led by appealing product, both are expanding their networks steadily.

BrAnD YTD (%)10 Lotus -2.069 Infiniti -5.048 Aston Martin -9.067 Smart -13.496 Mini -15.455 Chrysler -21.394 Chevrolet -59.213 Saab -66.672 Perodua -85.531 Proton -93.33

B i g g e s t g r o w e r s

y e A r t o d At e

BrAnD YTD (%)1 MG 833.332 Maserati 224.143 SsangYong 153.614 Dacia 85.535 Jeep 69.946 Renault 60.047 Lexus 36.878 Bentley 35.919 Mazda 27.1410 Škoda 20.97

1 0 -y e A r M A r k e t t r e n d s A v A i l A B l e : w w w . a m - o n l i n e . c o m / a m in e w c A r r e g i s t r At i o n s

June Year-to-date

Marque 2014 % market 2013 % market % 2014 % market 2013 % market % share share change share share changeFord 29,376 12.87 31,197 14.51 -5.84 173,554 13.48 163,396 14.04 6.22Vauxhall 28,304 12.40 24,870 11.57 13.81 141,609 11.00 132,640 11.40 6.76Volkswagen 18,654 8.17 19,591 9.11 -4.78 110,666 8.60 101,317 8.71 9.23BMW 15,052 6.59 14,290 6.65 5.33 75,122 5.84 65,214 5.60 15.19nissan 13,524 5.92 10,602 4.93 27.56 70,929 5.51 61,661 5.30 15.03Audi 13,503 5.91 12,417 5.78 8.75 83,761 6.51 73,767 6.34 13.55Mercedes-Benz 11,200 4.91 9,613 4.47 16.51 63,866 4.96 54,637 4.70 16.89Peugeot 9,684 4.24 9,887 4.60 -2.05 57,428 4.46 56,253 4.83 2.09Toyota 8,850 3.88 8,472 3.94 4.46 51,064 3.97 47,358 4.07 7.83Citroën 7,274 3.19 6,886 3.20 5.63 44,090 3.43 42,784 3.68 3.05Kia 7,260 3.18 6,742 3.14 7.68 40,849 3.17 37,178 3.20 9.87Hyundai 7,198 3.15 7,147 3.32 0.71 42,732 3.32 39,135 3.36 9.19Škoda 6,477 2.84 6,361 2.96 1.82 39,176 3.04 32,384 2.78 20.97Fiat 6,463 2.83 5,710 2.66 13.19 34,870 2.71 29,423 2.53 18.51renault 6,277 2.75 4,161 1.94 50.85 32,064 2.49 20,035 1.72 60.04Mini 5,465 2.39 5,956 2.77 -8.24 21,408 1.66 25,320 2.18 -15.45Seat 5,075 2.22 4,428 2.06 14.61 27,342 2.12 22,752 1.96 20.17Honda 4,802 2.10 5,461 2.54 -12.07 29,919 2.32 30,226 2.60 -1.02Land rover 4,027 1.76 4,046 1.88 -0.47 30,019 2.33 30,120 2.59 -0.34Volvo 3,915 1.71 3,127 1.45 25.20 19,850 1.54 16,780 1.44 18.30Suzuki 3,318 1.45 3,039 1.41 9.18 19,726 1.53 17,120 1.47 15.22Mazda 2,700 1.18 2,478 1.15 8.96 19,887 1.54 15,642 1.34 27.14Dacia 1,931 0.85 1,829 0.85 5.58 12,976 1.01 6,994 0.60 85.53Jaguar 1,792 0.78 1,341 0.62 33.63 9,826 0.76 8,658 0.74 13.49Mitsubishi 1,266 0.55 416 0.19 204.33 6,000 0.47 5,034 0.43 19.19Lexus 1,076 0.47 738 0.34 45.80 5,631 0.44 4,114 0.35 36.87Porsche 766 0.34 669 0.31 14.50 4,640 0.36 3,901 0.34 18.94Alfa romeo 570 0.25 445 0.21 28.09 2,957 0.23 2,787 0.24 6.10Smart 467 0.20 502 0.23 -6.97 2,527 0.20 2,921 0.25 -13.49Jeep 352 0.15 203 0.09 73.40 1,628 0.13 958 0.08 69.94Subaru 239 0.10 175 0.08 36.57 1,309 0.10 1,100 0.09 19.00Chrysler 212 0.09 231 0.11 -8.23 1,084 0.08 1,379 0.12 -21.39MG 196 0.09 22 0.01 790.91 1,204 0.09 129 0.01 833.33Abarth 138 0.06 123 0.06 12.20 789 0.06 711 0.06 10.97Maserati 134 0.06 35 0.02 282.86 564 0.04 174 0.01 224.14Bentley 127 0.06 116 0.05 9.48 810 0.06 596 0.05 35.91SsangYong 100 0.04 36 0.02 177.78 738 0.06 291 0.03 153.61Aston Martin 94 0.04 97 0.05 -3.09 482 0.04 530 0.05 -9.06Infiniti 45 0.02 12 0.01 275.00 226 0.02 238 0.02 -5.04Chevrolet 23 0.01 1,299 0.60 -98.23 2,759 0.21 6,764 0.58 -59.21Lotus 22 0.01 17 0.01 29.41 95 0.01 97 0.01 -2.06Perodua 3 0.00 15 0.01 -80.00 22 0.00 152 0.01 -85.53Mia 0 0.00 0 0.00 0.00 5 0.00 0 0.00 0.00Proton 0 0.00 0 0.00 0.00 1 0.00 15 0.00 -93.33Saab 0 0.00 0 0.00 0.00 1 0.00 3 0.00 -66.67Other British 67 0.03 57 0.03 345.61 432 0.03 422 0.04 47.87Other Imports 273 0.12 98 0.05 -12.24 628 0.05 513 0.04 -15.01Total 228,291 214,957 6.20 1,287,265 1,163,623 10.63

5

9


SHOWROOM T H E C A R S D R I V I N G Y O U R B U S I N E S S

62Mazda6 Tourer

After Mazda reveals the second of its Skyactiv diesel engines, we see how the unit in our car blends performance with efficiency.

61Mitsubishi ASX

The Japanese brand has been showcasing its compact crossover in a TV prime-time documentary sponsorship deal.

Will the Cherokee put Jeep on the road to recovery?

58Mitsubishi

Outlander PHEVIt’s a game-changing plug-in hybrid that undercuts rivals thanks to a diesel price match.

F I R S T D R I V E : J E E P C H E R O K E E – O N S A L E N O W

“In order for sales to take off in Europe,

it needs to abandon

some of its American heritage”

Jeep expects the new, higher-quality Cherokee to almost triple its annual registrations

with registrations of 2,229 units so it’s clear what kind of an impact Zanlunghi is expecting the Cherokee to have. Jeep has already posted 1,276 units in the first five months of the year and increased market share from 0.10% to 0.12% YTD.

Jeep has a strong badge to trade on and the business is expecting to pull in conquest sales on the back of improved build quality and styling that is more to European tastes.

It’s a difficult line to walk for Jeep. In order for sales to take off in Europe, it needs to abandon some of its American heritage, but that quintessential Americana is also what gives the badge its strength. There are little nods to Jeep’s past, with a WWII Jeep silhouette on the interior of the windscreen, but this is very much being marketed as an on-road vehicle, rather than a mud-plugger.

The interior quality in the cabin has been improved massively over previous generations. Zanlunghi told AM that under General Motors’ ownership, Chrysler engineers were told to strip out cost from the interior on previous Jeeps to stop it competing with internal products. Under Fiat’s ownership, fit

The Cherokee is another positive step for Jeep, following the Grand Cherokee

By Tom Seymourhe Jeep Cherokee is phase two of the brand’s recovery plan after parent company Fiat Chrysler Automobiles (FCA) came very close to dropping the franchise in the UK in 2012.

Jeep will become the lead franchise for Chrysler Jeep dealers with the new Cherokee leading volumes until the Fiat 500L-derived Renegade arrives next year.

Steve Zanlunghi, Fiat Group Automobiles UK chief executive and managing director, told AM the Cherokee would add 2,000 units to Jeep volumes in its first six months, building up to approximately 4,000 units in a full year. Jeep ended 2013

T


F O R M O R E R E V I E W S V I S I T: w w w . a m - o n l i n e . c o m / r o a d t e s t s

SPECIFICATIONPrice £25,495-£35,695Engine 2.0-litre 140bhp/170bhp dieselPerformance 0-60mph 10.3-12 secs; 117-119mph top speed Transmission 6-sp man; 9-sp autoEffi ciency 48.7-53.3mpg; 139-154g/km CO2

RV 3yr/30k 36%Rivals Audi Q3, BMW X3, Land RoverDiscovery Sport

AUTOCARThe new Jeep Cherokee is an improvement over the old model, but it isn’t yet in the league of German competitors.

AUTO EXPRESSAt long last, Jeep has come up with a cross-over that’s a credible mainstream choice. The new Cherokee trails the class leaders because of its poor handling, lack of reas-suring steering weight and relatively high noise levels, but it remains an encouraging first step.

WHAT YOUR CUSTOMERS

WILL BE READING ABOUT

THE X-TRAIL

4,000the registrations Steve Zanlunghi, Fiat Group Automobiles UK chief executive, expects the Cherokee to add to Jeep volumes in its first full year

and finish has been improved on the Cherokee (which is based on the Alfa Romeo Giulietta platform). The dials on the dash are more tactile and any areas the driver touches are soft-touch plastic. There’s still a little bit of hard plastic to be found, but it’s a big improvement. One concerning area, however, was the fitment of the centre console in the back of the Cherokee, which was quite loose on the two test cars AM tried on the UK launch.

The Cherokee has extremely comfortable and squashy seats. There’s not much lumbar support, but the seats take some of the harshness out of the new Jeep’s ride.

Initially, the new Cherokee will be available with a choice of 140bhp and 170bhp 2.0-litre turbo-diesel engines. The top-selling higher powered diesel is capable of 48.7mpg and has CO2 emissions of 154g/km. Customers can choose from four trim levels: Longitude, Longitude+, Limited and Trailhawk. The Trailhawk trim will only be available by special order towards the end of this year and will be powered by a 3.2-litre petrol engine.

The higher-powered diesel is adequate and the nine-speed auto is smooth enough, but it’s not as refined as the nine-speed available with Land Rover. The Cherokee actually feels slightly better to drive in manual mode with the lower-powered diesel, there’s more control over the gears and there doesn’t appear to be a huge performance difference on the road despite a 30bhp drop in power.

While the Cherokee starts at £25,495, the majority of sales will be the £35,695 Limited 9-speed automatic model. This price point puts Jeep right up against some tough opposition, such as the BMW X3 and Audi Q5. Customers could also be looking at a top-of-the-range Kia Sportage and still have more than £6,000 to spare. The arrival of the Land Rover Discovery Sport later this year (the replacement for the Freelander) will likely add another tough competitor to crossover customers’ consideration lists. Part of Jeep’s marketing strategy will be to invite comparison. Its ‘dare to compare’ campaign will let customers make like-for-like comparisons against competitors and Jeep is particularly keen to push the technology angle.

Each model features a thin-film transistor (TFT) screen in the instrument cluster available in either monochrome or colour. On the centre console there’s a choice between a five-inch colour touch-screen for the Uconnect media system and, in a first for this class, an 8.4-inch display. The entry-level Longitude model comes with cruise control, parking sensors and dual-zone air-conditioning as standard.

One highlight is an optional wireless smartphone charging pad on the centre console. It’s a neat addition and in this case, Jeep is ahead of the smartphone curve, with only the newest phones being compatible with the device (dealers can include sleeves which will charge any phone, but this some-what defeats the purpose).

The Cherokee is another positive step for Jeep, following the Grand Cherokee, with improved quality over the previous generation and technology which will help it compete in the sector.

While it’s not strong enough to rival German products on style and quality, it is still a credible option that Jeep is hoping will help it onto customer consideration lists.

The 2.0-litre diesel has CO2

emissions of 139g/km

M A NUFAC T URERFIN A NCE OFFER

Model Jeep Cherokee 2.0 Longitude 140 FWDFinance type PCPDeposit £4,179Term 36 monthsMonthly payment £299Final payment £11,810APR 1.9%

Interior quality has greatly

improved


IN SEPTEMBER ’S ISSUE PUBLISHED AUGUST 22 AM, Media House, Lynch Wood,

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C O N TA C T U S

Technologies for aftersales A look at a selection of technologies designed to improve aftersales performance.

KnightsIan Dow, Knights BMW and Mini aftersales director, tells AM how the group is driving up efficiency in its workshops and aftersales teams.

A D V E R T I S E R S ’ I N D E X

Armchair Answercall ........................39Barclays Partner Finance ..................2Cambridge Sound .............................39Chris Eastwood Automotive ...........65

Close Motor Finance ............................6Digital Blurb ..................................34-35DSG Financial Services .....................18Experian ................................................30Greenhous Re-marketing Service 63Heritage Automotive .........................64Infomedia ..............................................68Institute of the Motor Industry .......27iVendi ......................................................33

Jewelultra .......................................50/52Lloyds Banking Group .....................14Loughborough University ................60Manheim Retail Services ...........25/59Mapfre Abraxas uk ..............................8Marketing Delivery ............................44Marketingfile ........................................49Marsh Finance .....................................60Northridge Finance ............................62

Paragon Automotive ..........................11Pendragon ............................................65RAB .........................................................22Stephen James Group Trading .....65Supagard ...............................................53Symco Training ....................................26Trader Publishing .......................28-29Trusted Dealers ..................................10Williams Manchester .......................64

Citroën C4 Cactus

Taking aftersales back to basics The right fix at the right time, every time, is the holy grail for workshops. Experts share their views on how to achieve it.

The Airbump parking damage protection on Citroën’s new compact hatchback may polarise prospective buyers, but the French brand needs this car to succeed.

FACE TO FACE:

AM August 2014 preview

Documents

Transcript of AM August 2014 preview