am - automotive management magazine july 2014 preview

AUTOMOTIVE MANAGEMENT

www.am-online.com July 2014 £8.00

FACE TO FACE / P 3 6

Pentagon’s Trevor Reeve on the vital role of trainingin his expansion plan

POWER TO YOUR PEOPLE

How to recruit, train and retain the best staff for your business

S TA F F L O YA LT Y / P4 3

Read our experts’ advice to cut costly employee turnover

P E R F O R M A N C E / P 2 3

Does your staff measure up on the sales experience?

R E C R U I T M E N T / P 3 0

How dealers can pick the best talent in a crowded market

THE PEOPLE

ISSUESTARTS PAGE 23

This conference aims to deliver easily digestible ‘chunks’ whilst also throwing a few curved balls to help dealers maintain their momentum and 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 the wider aspect of digital including latest technology, data and security.

DIGITALDEALERconfEREncE

SAVE THE DATE: 4 September 2014

for further details, please visit: www.amdigitaldealer.co.uk

The Heritage Motor centre, Gaydon

Headline sponsor Masterclass sponsors:

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

Booming car markets make the right people more vital than ever

W

Jeremy BennettEditor

Tim RoseManaging editor

Tom SeymourContent manager

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.On Page 26, he examines how

10-year-old demand props up residual values on new cars.

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 (p47), he suggests that dealers will get more from their employees if they leave some things to their own initiative.

WELCOME

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

Check your inbox for your

Monday, July 14

Ezine

ith the recession moving farther into the distance and the car markets at full strength, the motor retail industry appears to be putting renewed focus on the skills and rewards of its workforce.

Through the economic downturn, a continual complaint from dealer group leaders was the sector’s inability to attract and retain high-calibre fresh talent. With the job market steadily improving, there’s now even more pressure on dealers to compete effectively for the best recruits. Our insight on page 30 examines some of the efforts being made.

Arguably more important is a dealer’s need to keep their existing staff performing well and feeling rewarded. Our Pentagon Group interview on page 36 acknowledges this need, with Trevor Reeve investing in developing his staff to be ready for tomorrow’s challenges. His emphasis on people is shared by Peter Vardy and Marshall Motor Group, which reveal on page 48 how they’re both setting industry-leading standards for rewards and recognition.

As consumers become ever more engaged with digital channels, people can still make the difference in motor retail.

Philip NothardHe is retail and consumer valuations editor at CAP, which he joined in 2010 after two decades working in motor retail, culminating in

running dealerships for European Motor Holdings, Lythgoe Motor Group and Arnold Clark.

In this issue (p29), he looks at the reasons behind the renewed market optimism reported by used car traders.

am-online.com July 2014 3

Insight

30 Hiring the best talent Dealers need to do more to secure

the highest-quality candidates, including embracing online recruitment tools and looking beyond the industry.

32 The supplier’s view Job Co-Op Automotive sales director

Derek Webb explains why dealers must move beyond sales targets to hire the best people.

36 Face to face: Pentagon Group

Chairman and chief executive Trevor Reeve details how a focus on his staff and investment in the Pentagon Training Academy are preparing the AM100 group for acquisitions.

In this issue July 2014

Your news

6 News digest This month’s round-up includes

good results for Marshall and Caffyns, dealer profitability remains strong and the servicing cost gap with independents narrows.

Market intelligence

12 New car registrationsMay’s 7.7% registrations rise is the 27th month of consecutive growth, breaking a record set in the 1980s.

14 Used car values Wholesale used car values rose

5.2% in May, but volumes were down 5% month-on month.

17 Finance Suppliers outline the benefits

available from finance tools, which can extend the time consumers spend on your websites.

36FACE TO

FACEPENTAGON

GROUP’S TREVOR

REEVE

29 Used car confidence boost CAP’s Philip Nothard examines

the reasons behind the renewed market optimism reported by used car traders.

20 Economic indicators The Bank of England warns interest

rates may rise soon and productivity is 16% below where it should be.

.

Your feedback

22 AM poll Readers give their opinion on

whether improved car markets will lead to more dealership acquisitions.

4 July 2014 am-online.com

23THE PEOPLE ISSUE: STARTS ON PAGE 23

Analysis

23 How does your staff measure up?

Dealers expect a consistent level of customer service from their staff and have a growing toolkit to ensure it is delivered. Plus, how do your staff evaluations compare with Google’s?

26 Gravity-defying RVs Jay Nagley on how 10-year-old car

demand props up new car residuals.

THE PEOPLE

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

Coming soon In the next issue of AM Face to face with HR Owen marketing

and customer director Chris Harris; the 21st-century marketing toolkit; and the Jeep Cherokee reviewed.

66

58 NISSAN X-TRAILTHIRD GENERATION GOES DUAL-PURPOSE

Showroom

58 Nissan X-Trail The third-generation X-Trail will target families as well as 4x4 fans.

60 Mitsubishi ASX Four months into our long-term test, we are struggling to get near the manufacturer’s fuel efficiency figures.

61 Seat Leon SE 1.6 TDIA stress-free repair experience is a fitting end to our long-term test.

62 Mazda6 TourerMazda UK is equipping its dealers with a system to help target their marketing.


ADP ...................................................................54Alex F Noble & Son ........................................7Alphera Financial Services .......................18ASE ......................................................................6Auto Trader ....................................................25BCA ....................................................................14Birketts ...............................................................7Black Horse ....................................................12Blackshaws ...................................................54Brian Leighton .................................................9BTC ...................................................................44Caffyns ...............................................................7Cambria Automobiles .........................23, 53Citroën ................................................................7Close Motor Finance ....................................18Codeweavers ..................................................17DCML ..................................................................9Donalds Motor Group ....................................7Douglas Stafford ..........................................23Emac .................................................................17FLA .............................................................18, 19Google ..............................................................25GoThinkBig .....................................................50Hyundai UK ....................................................44Independent Garages Association ..........49Institute of the Motor Industry ..44, 49, 50Ivendi .................................................................17Jaguar Land Rover .......................................10Jardine Motors Group ...................................6Jeep .....................................................................7Job Co-op Automotive .........................31, 32Knight Frank.....................................................7Manheim .....................................................7, 14Marshall Motor Group ...........................6, 48Martins Group ..................................................9Mercedes-Benz ...............................................7Motoring.co.uk ...............................................10Pentagon Group ...........................................36Penton.................................................................9Peter Vardy .....................................................49Romford Mazda ............................................44RRG Group ........................................................6RTS ...................................................................43SMMT ................................................................12Steele Dixon ...................................................30Steven Eagell....................................................9Swansway Garages ......................10, 30, 43Talent Q ...........................................................24Tesla ....................................................................9Trust Ford ...................................................6, 30Unity Automotive ..........................................43Vauxhall ...........................................................50Vertu Motors .............................................9, 24Volkswagen.......................................................7Warranty Direct...............................................9Wilson And Co ..............................................43

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

43 Boost your staff retention Dealer HR experts and training providers share their tips on how to stem the high staff turnover in motor retail.

47 View from the business school

Dealers will get more from their employees if they leave some things up to their own initiative, writes Prof Jim Saker.

48 AM People conference Advice and case studies on creating a people culture, measuring the return on your training investment and how to attract young people and graduates to the motor retail sector.

51 AM Executive Breakfast Lecturer and author James Bannerman on the benefits of allowing your staff time to think creatively.

53 DMS and cloud computing How dealers can gain from adopting an external solution for their dealership management systems.

32 THE SUPPLIER’S VIEW: “WE’VE HAD OCCASIONS WHERE PEOPLE IN THIS

INDUSTRY HAVE BEEN MADE TO SING OR TO DO IMPRESSIONS OF A CHICKEN”

Greater value for customers

Meet ‘self-service’ expectations

Better dealer experience

Cost-saving potentialProtecting business

DMS AND THE CLOUDIS EXTERNAL HOSTING RIGHT FOR YOUR DMS?

53

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THE PEOPLE

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THE PEOPLE

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

14Used car values

the latest data on nearly new, ex-fleet and part-exchange car values from the Uk’s main auctions.

17Finance

Suppliers reveal the benefits available from finance tools, which can extend a consumer’s online visit.

20economic indicators

a selection of the key national statistics that will help Uk motor retailers to refine their business opportunities.

By Tom Seymourk new car registrations increased by 7.7% to 194,032 units in may, the 27th consecutive month of growth – breaking a

record set in the 1980s.this year’s may result outper-

formed the past 10 years and regis-trations for 2014 to date have passed the one million mark, rising 11.6% to 1,058,974 units, according to figures from the Society of motor manufac-turers and traders (Smmt).

the corporate market accounted for the highest proportion of growth, with business registrations up 26.8% in may to 7,619 units, while fleet

need to know n May total hits 194,032 unitsn More than one million cars regis-tered since start of 2014

n e w c a r M a r k e t

New car growth streak breaks 1980s recordmay registrations rise of 7.7% marks 27th month of consecutive growth

U

registrations were up 6.5% to 95,702 units. Private registrations mirrored the month’s growth with a 7.7% increase to 90,711 units.

sMMt chief executive Mike hawes put the growth down to increasingly confident consumers who have been drawn to new products and compet-itive finance offers.

the Smmt is forecasting an overall rise of 6% in new car registrations this year, but warns that the coming months could see some levelling off in growth rates as underlying demand stabilises.

chris sutton, Black horse managing director, said: “if the posi-tive momentum in new car sales continues, it looks like we are set for a strong Q2 in the motor industry as this month’s figures show consumer demand for new cars remains unabated, albeit we may not see the same pace of growth that we have witnessed in recent months.”

v o l U M e s p l i t

increase to 4,762 units. england was the largest part of the market at 163,585 units, with a slightly slower rate of growth at 6.76%.

Buying trendsthe Smmt has looked at buying trends over the past 10 years and concluded that motorists are demanding ever-increasing levels of style, comfort and functionality.

in the decade from 2004 to 2013, the number of cars registered with alloy wheels as standard jumped from 65% to 87.1%, while air condi-tioning was standard on 95.4% of cars in 2013, compared with just 75.3% in 2004.

reflecting the intensifying demand for in-car connectivity, registrations of cars with mP3 capability as standard increased from 83.3% of the market to 95.7% in four years between 2010 and 2013.n read cap’s philip nothard on why the used car retail market is also on fire: page 29.

May Total Diesel Petrol AFV Private Fleet Business2014 194,032 99,580 91,008 3,444 90,711 95,702 7,6192013 180,111 91,577 86,535 1,999 84,201 89,899 6,011% change 7.7% 8.7% 5.2% 72.3% 7.7% 6.5% 26.8%Mkt share ‘14 51.3% 46.9% 1.8% 46.8% 49.3% 3.9%Mkt share ‘13 50.8% 48.0% 1.1% 46.7% 49.9% 3.3%Year-to-date Total Diesel Petrol AFV Private Fleet Business2014 1,058,974 525,462 514,335 19,177 522,150 488,129 48,6952013 948,666 466,074 470,296 12,296 460,557 447,666 40,443% change 11.6% 12.7% 9.4% 56.0% 13.4% 9.0% 20.4%Mkt share ‘14 49.6% 48.6% 1.8% 49.3% 46.1% 4.6%Mkt share ‘13 49.1% 49.6% 1.3% 48.5% 47.2% 4.3%

F i v e l o n g e s t p e r i o d s o F c o n s e c U t i v e g r o w t h i n U k n e w c a r r e g i s t r at i o n s


scotland leads the growththe Scottish market accounted for the highest proportion of growth in may, with a 15.76% increase in registrations to 17,800 units. Wales followed with a 12.5% increase to 6,966 units and then northern ireland with a 12.42%


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

Bentley is proving it pays to have wealthy parents. as part of vw group, it keeps rolling out exclusive editions and with the compelling offers of vw Finan-cial services behind it, the crewe-based luxury car maker is winning a fair share of extra sales in 2014.

contrast that with aston Martin, its rival British-built supercar brand. despite the economic recovery, the gaydon-based firm, whose latest launch is the vanquish volante [below), has seen a 10.4% decline in its Uk registrations. demand is growing overseas, however.

BrAnD YTD (%)10 Lotus -8.759 Aston Martin -10.398 Smart -14.847 Mini -17.676 Infiniti -19.915 Chrysler -24.044 Chevrolet -49.943 Saab -66.672 Perodua -86.131 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 842.062 Maserati 209.353 SsangYong 150.204 Dacia 113.845 Jeep 69.016 Renault 62.457 Bentley 42.298 Lexus 34.929 Mazda 30.5610 Škoda 25.65

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

May Year-to-date

Marque 2014 % market 2013 % market % 2014 % market 2013 % market % share share change share share changeFord 23,459 12.09 25,674 14.25 -8.63 144,178 13.61 132,199 13.94 9.06Vauxhall 21,961 11.32 20,898 11.60 5.09 113,305 10.70 107,770 11.36 5.14Volkswagen 19,151 9.87 16,370 9.09 16.99 92,012 8.69 81,726 8.61 12.59Audi 13,534 6.98 12,265 6.81 10.35 70,258 6.63 61,350 6.47 14.52BMW 11,649 6.00 10,736 5.96 8.50 60,070 5.67 50,924 5.37 17.96nissan 10,151 5.23 9,045 5.02 12.23 57,405 5.42 51,059 5.38 12.43Mercedes-Benz 10,131 5.22 8,391 4.66 20.74 52,666 4.97 45,024 4.75 16.97Peugeot 8,066 4.16 7,903 4.39 2.06 47,744 4.51 46,366 4.89 2.97Toyota 7,644 3.94 6,321 3.51 20.93 42,214 3.99 38,886 4.10 8.56Citroën 6,610 3.41 7,184 3.99 -7.99 36,816 3.48 35,898 3.78 2.56Škoda 6,339 3.27 5,469 3.04 15.91 32,699 3.09 26,023 2.74 25.65Hyundai 6,309 3.25 6,230 3.46 1.27 35,534 3.36 31,988 3.37 11.09Kia 6,015 3.10 5,604 3.11 7.33 33,589 3.17 30,436 3.21 10.36Fiat 4,865 2.51 4,442 2.47 9.52 28,407 2.68 23,713 2.50 19.80renault 4,677 2.41 3,088 1.71 51.46 25,787 2.44 15,874 1.67 62.45Seat 4,607 2.37 3,884 2.16 18.61 22,267 2.10 18,324 1.93 21.52Land rover 4,513 2.33 3,826 2.12 17.96 25,992 2.45 26,074 2.75 -0.31Honda 3,809 1.96 3,579 1.99 6.43 25,117 2.37 24,765 2.61 1.42Mini 3,184 1.64 4,080 2.27 -21.96 15,943 1.51 19,364 2.04 -17.67Volvo 3,137 1.62 2,323 1.29 35.04 15,935 1.50 13,653 1.44 16.71Suzuki 2,695 1.39 2,444 1.36 10.27 16,408 1.55 14,081 1.48 16.53Mazda 2,523 1.30 2,321 1.29 8.70 17,187 1.62 13,164 1.39 30.56Dacia 2,245 1.16 1,171 0.65 91.72 11,045 1.04 5,165 0.54 113.84Jaguar 1,351 0.70 1,259 0.70 7.31 8,034 0.76 7,317 0.77 9.80Mitsubishi 1,082 0.56 687 0.38 57.50 4,734 0.45 4,618 0.49 2.51Lexus 824 0.42 606 0.34 35.97 4,555 0.43 3,376 0.36 34.92Porsche 820 0.42 837 0.46 -2.03 3,874 0.37 3,232 0.34 19.86Alfa romeo 434 0.22 411 0.23 5.60 2,387 0.23 2,342 0.25 1.92Smart 403 0.21 553 0.31 -27.12 2,060 0.19 2,419 0.25 -14.84Jeep 357 0.18 108 0.06 230.56 1,276 0.12 755 0.08 69.01Subaru 271 0.14 138 0.08 96.38 1,070 0.10 925 0.10 15.68MG 241 0.12 13 0.01 1,753.85 1,008 0.10 107 0.01 842.06Chrysler 128 0.07 286 0.16 -55.24 872 0.08 1,148 0.12 -24.04SsangYong 125 0.06 44 0.02 184.09 638 0.06 255 0.03 150.20Abarth 117 0.06 109 0.06 7.34 651 0.06 588 0.06 10.71Maserati 113 0.06 35 0.02 222.86 430 0.04 139 0.01 209.35Bentley 103 0.05 101 0.06 1.98 683 0.06 480 0.05 42.29Chevrolet 90 0.05 1,341 0.74 -93.29 2,736 0.26 5,465 0.58 -49.94Aston Martin 73 0.04 76 0.04 -3.95 388 0.04 433 0.05 -10.39Infiniti 43 0.02 38 0.02 13.16 181 0.02 226 0.02 -19.91Lotus 17 0.01 22 0.01 -22.73 73 0.01 80 0.01 -8.75Perodua 3 0.00 15 0.01 -80.00 19 0.00 137 0.01 -86.13Mia 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 98 0.05 78 0.04 25.64 370 0.03 365 0.04 1.37Other Imports 65 0.03 106 0.06 -38.68 350 0.03 415 0.04 -15.66Total 194,032 180,111 7.73 1,058,974 948,666 11.63

7

9


INSIGHT AM/IMI People Conference

Daksh Gupta, Marshall Motor Group chief executiveTransforming a regional business into a national company can only

succeed if its people are genuinely at its heart, according to Daksh Gupta, chief executive of Marshall Motor Group.

To get there, Marshall has a ‘discre-tionary spend’ of £1.53 million or £691

per employee each year on staff training, development and rewards. That expenditure is translating into success, with Marshall’s operating profits up by 75% to £11.8m in 2013. Return on capital employed (ROCE) was at 18.3% in 2013.

“Since 2008, our turnover has grown from £250m to over £1 billion. This hasn’t been achieved just though acquisition as our organic turnover per site has moved from £9.7m to £17m over that period,” said Gupta.

“The only way to achieve such success is with the highest levels of engagement with employees.”

Marshall went from having 41 deal-erships, exiting 23 sites, to becoming a national player with 70 retailers from Cumbria and Scarborough in the north to Plymouth in the south. Employee numbers increased 275%, from 800 to 2,200, between 2008 and 2014. Gupta said: “72% of our portfolio

NEED TO KNOW ■ Marshall spends £691 per employee annually on training, development and rewards■ Marshall scored 55% in its first Great Place to Work survey in 2008, but scored 77% last year

HOW TO CREATE A PEOPLE CULTURE

Read extended versions of these reports online at: am-online.com/

people

Building on your people power

Advice and case studies on creating a people culture, measuring the return on your training investment and attracting young people and graduates to a professionalised motor retail sector

“One of the first things we did was send employees who had been with us for

five years a bottle of champagne”

is less than five years old as we have bought and sold more than 70 busi-nesses since 2008. We have acquired businesses from 12 different compa-nies, almost of all of which were loss-making, so the people challenge has been significant.”

Employee turnover has remained at about 25%. Marshall introduced a Great Place to Work survey in 2008 and the first score was 55% with a 47% participation rate. By acting on the feedback, 2013’s survey scored 77%, with a 91% participation rate.

“We had some very loyal employees,

but never recognised them until they had worked for us for 30 years,” said Gupta. “One of the first things we did was send employees who had been with us for five years, champagne and for those who went on to work with us for 10, 15, 20 and 25 years, we arrange a weekend away with their partner.

“We also introduced the Marshall CEO Awards . Any employee can nominate a colleague and eight winners receive a weekend away. We send around 40 colleagues twice a year to all sorts of locations like Moscow, Iceland and Croatia. ”

THE PEOPLE ISSUE

Elaine Ashworth, Peter Vardy Academy directorIn its drive to create the ‘best place to work’, Scottish dealer

group Peter Vardy is confident the company will become ‘the John Lewis of automotive retail’.

As winners of this year’s AM Award for Best Training Programme, Peter Vardy’s academy director Elaine Ashworth told delegates the group’s focus on its staff has contributed to it surpassing its business plan objec-tives by 30% and a return on sales of almost 3%.

More importantly, the group boasts 85% retention within its core sites and gained 10 percentage points in 2013 over the previous year’s training score in The Sunday Times 100 Best Compa-nies to Work For, with 71%.

Peter Vardy has 12 dealerships and

NEEd to kNow n Peter Vardy Academy gives all managers one day’s training a month on leadership skills n All new employees go through a three-day induction course

PEtEr VArdy: thE AcAdEmy routE

Stuart James, Independent Garage Associa-tion directorThe increasing presence of a more professional

independent sector will help raise the perception of automotive retail as a whole, according to the Independent Garage Association (IGA).

Stuart James said: “The big ‘ticket’ items for the independent sector are undoubtedly training, particularly technical development, access to manufacturer’s technical information and legislation, especially legal and health and safety regulations.

“The sector is a sleeping giant, which is now awakening and adding its voice to the development of automotive retail. By so doing, we are adding

gravitas to the movement to further professionalise the industry.”

James said one of the misconcep-tions is that the independent sector is reluctant to invest in training.

However, the IGA launched its hybrid safety awareness training scheme 18 months ago and it has trained more than 3,000 mechanics from 1,500 businesses.

A large proportion of its members, who took part in an IGA survey, also employ an apprentice (38%), reflecting the sector’s commitment to devel-oping young talent, and 56% said they

would take on an apprentice if there was more support from the organisa-tion particularly in negotiating the legislative process and helping to recruit the right person for the job.

“Anecdotal evidence from our members suggests school leavers are receiving limited and even inac-curate information about apprentice-ships in the independent sector and that is something we as an organisa-tion need to tackle if we are going to help our members recruit high calibre school leavers for apprenticeship positions,” said James.

NEEd to kNow n training and legislation are among independents’ main concernsn IGA trained more than 3,000 mechanics in hybrid safety

VIEw from thE INdEPENdENtS


Steve Nash, chief executive, ImIFour in five dele-gates at the AM/IMI People Confer-ence voted in a poll for motor industry professionals to

be licensed. Steve Nash said this is an issue about professional versus non-professional.

“Those who get it understand you need to invest in people. The true downgrading of our sector is by people who don’t want to invest in people and professionalism,” he said.

Nash said the UK motor industry spends £100 million a year on training, of which £40m is on non-technical training including management development. He asked if this was a good use of resources and whether it was a sound investment.

The IMI has worked hard to estab-lish industry-wide accreditation, through Automotive Technician

NEEd to kNow n four in five delegates want motor industry professionals to be licensedn only 15% of industry managers are formally qualified

NAtIoNAl AccrEdItAtIoN

“The true downgrading of our sector is by people who don’t want to invest in people”

Accreditation, Automotive Manage-ment Accreditation, and a publicly searchable professional register of 40,000 qualified people.

Such initiatives enable consumers to have more confidence in accredited motor industry workers, and also help dealers to employ skilled people rather than take a gamble.

Nash said there are good natural operators in motor retail, but it raises the question of how much better they could be after training for a professional accreditation.

Less than 1% of the skills and competence–based training is attended by dealer principals. That has to be addressed, said Nash. In addition, only 15% of industry managers are formally qualified.

He said the IMI has a role to play in attracting talent to dealerships. Its website includes a World of Work section, which explains and promotes the job roles within dealerships.

An equally important role is to provide educators with a better message than the one they’ve always received.

IMI has curriculum-orientated lesson plans and practical tools avail-able for teachers, and Nash is involved in judging school projects. A big problem is in getting teachers and parents to aspire to their children working in the sector and the IMI is working on sector-wide recognition and defined career paths that demon-strate why a motor industry career is an alternative to higher education.

Nash said in other sectors, 58% of starters are graduates on average. In the motor industry, it’s 17%. That reflects a traditional meritocracy in the industry, he said, where the likes of Trevor Finn started out as an apprentice and now run a huge group. But there’s a danger in a lack of change.

800 employees. At the heart of its strategy is the Peter Vardy Academy, which has been running for two years. All managers receive one day’s training a month on leadership skills and operational issues. The academy also provides structured training for all other employees, including customer service workshops.

Peter Vardy incorporates a number of other initiatives including allocating a ‘buddy’ for new starters. All employees go through a three-day induction course. Day one focuses on Peter Vardy’s vision and values, day two is dedicated to customer experi-ence, and the third day enables new recruits to ‘give something back’ to the community by working as a volunteer for the day.

Ashworth said: “We have had people work in food banks and other local charities or with community agencies and it has proved to be one of the most successful policies we have introduced.

“New employees are surprised that we encourage them to participate in the local community this way and they wholeheartedly embrace the oppor-tunity, with many continuing to under-take voluntary roles long afterwards. It fully underpins the Peter Vardy ethos and we think it is one of the defining characteristics of the business.”

Other initiatives include its ‘rookie academy’ which was established to encourage recruits from outside the industry and includes an intensive four-month programme. Running in conjunction with Edinburgh Napier University, it leads to an executive certificate in professional selling.

“It may sound a bit clichéd, but at Peter Vardy we genuinely care about the people who work for us and the customers who buy from us,” said Ashworth.

“New employees are surprised that we encourage them to participate in the local community”

co-sponsors:

tokunbo Ajasa-oluwa, head of GothinkBigThousands of young people in the UK have a passion for motoring, but

struggle to find a way into the sector.Motoring was identified as one of

nine passion points by 18-30-year-olds, alongside others such as fashion, music and technology, by an initiative called GoThinkBig (www.gothinkbig.co.uk), launched by AM’s parent company, Bauer, in October 2012.

This free online hub was created with O2 in response to record numbers of UK youth unemployment as a means to bridge the gap between the millions of young people Bauer reaches via its brands and employers.

Tokunbo Ajasa-Oluwa, head of GoThinkBig (GTB), said: “Among the

biggest hurdles for young people looking for experience or employ-ment is the lack of insight or oppor-tunity. They may have a considerable passion for motoring, but don’t have a clue how to work on the sales or service side of a car brand.

“Their contact networks are limited; no one in their family has experience, so the dream never becomes reality.”

GTB found contact-building was hampered by the fact that in only two UK regions more than 50% of busi-nesses publicly offer work experi-ence. Working to address this, Ajasa-Oluwa said every time a dealer had an opportunity available, GTB would work to match up a young person.

His ambition is to see more than 50% of businesses in every region offering work experience within the next 15 months.

Ajasa-Oluwa said 40% of GTB’s users had identified motoring as a passion. But only 8% had looked into getting experience in the sector.

“The ambition among young people is there to get into motoring. Our role is to pull together the opportunities that are relevant to your business and uncover talent – for free.”n for more information, email: [email protected]

NEEd to kNow n lack of contacts ‘is keeping young people out of motor trade’n GothinkBig aims to see more than 50% of businesses in every region offering work experience

how to thINk BIG


dr Paul Spear, return on invest-ment manager, Institute of the motor IndustryIt is possible to achieve a high return on invest-

ment (ROI) from targeted training, but non-targeted training that merely ticks boxes will not give good results, said Dr Paul Spear.

“Skills development is a proven route towards improving efficiency and productivity,” he said. “It’s about thinking way into the future and devel-oping individuals.”

The IMI’s research shows training can really make a difference and it has created an ROI calculator hosted on its website at theimi.org.uk/roi

About 68-70% of businesses believe training had no impact on profitability, said Spear. However, the problem is if you don’t measure it you can’t see it.

“Average retail margins in motor retail are very thin, around 3%, and to invest in training there needs to be a high degree of certainty that you’ll get some kind of return.”

The ROI research looked into lead-ership development and apprentice-ships. For the former, the IMI looked at two managers from Scottish fran-chised dealer John Clark Motor Group, who undertook an AMA (auto-motive management accreditation) assessment. From project-based management training, designed to fill an identified knowledge gap, they achieved an ROI of 184% and 212%.

In another case, a Mercedes-Benz Commercial Vehicles service team manager transformed the business through a management accreditation and achieved 100% ROI on training.

Spear surveyed 13 graduates of Loughborough University’s BSc degree in automotive management. All benefitted significantly, and most got their next position as a result.

From studying results of 30 appren-tices in several companies over two years, the study demonstrated that an apprentice can deliver an ROI of 150-300% net of employer costs. After 18-24 months, apprentices will have covered their costs.

NEEd to kNow n only 18% of retail managers have a level 3 qualification, compared with 45% in other sectorsn dealers must do more to communicate benefits of a career in the motor industry

trAINING rEturN oN INVEStmENt

chris roberts, retail network development director, VauxhallWhen Chris Roberts rejoined Vauxhall after six

years running Thurlby Motors, he noticed gaps in the skill set of the managers. Only 18% had gained a Level 3 qualification, compared with 45% in other sectors.

“To get the best out of our industry and our people, we’ve got to derive management skills and push those forward as a collaborative group.”

Such changes include developing line management at dealer level and attracting talented young people fresh out of schools and colleges.

Roberts said one challenge is dealers feel reticent about manufac-turer training. Often it creates a spike in performance immediately after-

wards that tails away. In recognition of this, Vauxhall has mapped its current training against the AMA (automotive management accreditation).

It starts with AMA Trait psycho-metric analysis, to identify a manag-er’s competence and identify any training gaps. Training to fill that gap takes out cost and is more effective, said Roberts.

The goal is to improve the customer experience, enable staff to sell value in the product rather than just nego-tiate on price, and create a happy workforce that’s been managed and motivated correctly so it will deal with customers more professionally.

Salespeople, service advisers and business managers are going through it, and next year it will be rolled out to general managers.

Roberts said the motor industry must do more to encourage schools and parents to push children towards it. It needs to get the message out that the industry is about technology – sales teams explaining infotainment, aftersales using diagnostics and management control systems.

To achieve this, Vauxhall has piloted an apprenticeship ‘toolbox’ that dealers can take to schools and colleges, or invite them into their dealerships, to explain what the industry is about.

NEEd to kNow n ImI’s research identifies return on training investment n Apprentices cover costs of training in 18-24 months

VAuxhAll: thE ImPortANcE of PEoPlE for A BESt-SEllING BrANd

INSIGHT AM/IMI People Conference

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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

Mazda UK is equipping its dealer network with a new system to help them target their marketing for cars such as the Mazda6.

61seat leon 1.6tdi

A stress-free accident repair experience to fix a mystery car park scrape is a fitting end to our Leon test.

Broader appeal as X-Trail goes dual-purpose

60mitsubishi asx

Four months into our long-term test, we’re finding the ASX offers great value but suffers at the fuel pump.

F i r s t d r i v e : n i s s a n x -t r a i l - o n s a l e J u ly 1 8

“I like the result and I’m

confident it will bring

more people into the brand”

Jim wright, nissan gb

The old model had a dedicated following, but Nissan’s new version is targeting families as well as 4x4 diehards

are already available offering the car for monthly payments below £350 excluding VAT.

nissan motor gb managing director Jim wright said: “We kept the nameplate after a survey showed this model to be among the best recognised of our products, but we had to respond to the fact that the X-Trail was becoming an increasingly niche car.”

Some 40% of SUVs/crossovers sold in the UK now are 2WD. The plan was to retain the model range’s 4x4 heritage and build on Nissan’s crossover expertise to redefine C-segment cross-over conventions.

“The decision was taken to develop the concept to have a broader appeal. I like the result and I’m confident it will bring more people into the brand,” said Wright.

The new Nissan X-Trail has abandoned its predecessor’s upright styling and go-anywhere focus and followed the lead of the smaller, road-biased Qashqai. Exterior and interior styling and quality is much improved and there’s more than enough space for adults in the back row thanks to seats

By Tim Roseissan knows it has significant brand equity in its X-Trail model range. Its two previous generations of the 4x4 have created quite a dedicated following, with some 53,000 still on the road in the UK.

Nevertheless, after the Europe-wide success of crossover models such as its Juke and Qashqai, the Japanese carmaker acknowledges there’s a bigger prize to be won by broadening the X-Trail’s appeal. This has fuelled its desire for the new version to fulfil a dual purpose – serving as its mid-sized SUV with 4x4 capability for those who want it, and offering a family-friendly seven-seater that fills the gap left by the recently discarded Qashqai+2.

Nissan GB expects its first full-year UK sales to be about 8,000 and passing 10,000 units thereafter, more than double the peak of the old model.

The company car user is a prime target – only about 40% of new X-Trail sales will be to private buyers, with fleets, user-choosers and Motability taking the rest. Business leasing deals

N


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 £22,995 - £31,695Engine 1.6-litre diesel: 128bhpPerformance 0-62mph 10.5 secs, top speed 117mphTransmission 6sp man, CVT autoEfficiency 129-139g/km CO2

RV 3yr/30k TBCRivals Hyundai Santa Fe, Ford Kuga

auto expresson first impressions, the x-trail makes a great case for itself as a family-mover. thanks to an all-new platform co-developed with renault, the x-trail has the most legroom in its class, and the rear doors open outward by more than 80 degrees.

Honest JoHnthe x-trail is not quite as practical as a tradi-tional suv, but it’s got more style and should prove to be more capable thanks to the option of all-wheel drive, seven seats and a reasonable 2,000kg braked towing weight. some might think it’s too similar to the Qashqai to spend the extra money on, but it’s certainly worth a look if you demand a comfort-able, easy-to-drive car with plenty of space.

wHat your customers

will be reading about

tHe x-trail

57.6mpgclaimed fuel economy from the 1.6-litre turbodiesel engine

10,000nissan’s expected annual registrations for the new x-trail after the first year

mounted on runners. An optional, electric-powered tailgate gives access to a 550-litre boot and, for an extra £700, buyers can specify a third row of fold-out seats, perfectly suited for carrying their children’s friends. All three seat rows are mounted ‘theatre style’ to give better visibility.

Such thoughtful touches give the X-Trail added practicality that very few rivals this size can match. With a starting price of £22,995, it is £2,600 cheaper than its predecessor but £1,755 more than the old Qashqai+2.

The engine range is simple – a single 1.6-litre 128bhp turbodiesel which manages 57.6mpg, according to the claimed figures. A 160bhp turbocharged petrol model will be added in 2015. Two-wheel drive is standard, but there is an electronic lockable all-wheel drive option available on all four trim grades for a £1,700 premium. A CVT auto transmission is an option on the 2WD cars.

The specification of entry-level X-Trail Visia models, expected to be in least demand, includes 17-inch alloys, LED daytime running lights, electronic parking brake, cruise

control, Bluetooth and air-conditioning. A £495 Smart Vision Pack adds more safety technology, including front and rear parking sensors, lane departure warning and forward emergency braking. Move up a grade to Acenta and customers will get dual-zone climate control, automatic lights and wipers, a sunroof and leather steering wheel.

The higher-spec N-Tec or Tekna models are expected to be the bigger sellers, taking a combined 74% of X-Trail orders, according to Nissan GB’s forecast. N-Tec’s equip-ment includes roof rails, 19in alloys, digital radio, 360-degree parking cameras and Nissan Connect, a 7in touchscreen interface that controls navigation and entertainment systems, as well as allows occupants to access apps and social media on the move.

The Tekna adds further luxuries, including heated leather seats, LED headlamps and an automatic parking system.

With such levels of equipment, functionality and value, the new X-Trail should compete strongly against its rivals and prove itself a useful addition to any Nissan dealer’s stock.

exterior and interior styling

is much improved

entry-level models get electronic parking brake, cruise control, bluetooth

and air conditioning

a 550-litre boot and an optional third row of fold-out seats will appeal to families


IN AUGUST’S ISSUE PUBLISHED JULY 25 AM, Media House, Lynch Wood,

Peterborough PE2 6EA Email: [email protected]

If you or someone you know are aged 16-24 and are interested in work

experience opportunities at Bauer Media go to www.gothinkbig.co.uk

Editor Jeremy Bennett 01733 468261 Managing editor Tim Rose 01733 468266Brand content manager Tom Seymour 01733 468343 Industry editor Tony Willard

AM productionHead of publishingLuke Neal 01733 468262Production editor Finbarr O’Reilly 01733 468267

Contributors Jay Nagley, Prof Jim Saker, Philip Nothard, Steve Johnson, Chris Lowndes AM advertising Commercial director Sarah Crown 01733 366466Group advertisement managerSheryl Graham 01733 366467Project managers Leanne Patterson 01733 468332Kerry Unwin 01733 468327Angela PriceLucy Peacock 01733 468338Account managers Sara Donald 01733 366474Richard Kerr 01733 366473Kelly Crown 01733 366364Recruitment enquiriesRichard Kerr 01733 366473 AM publishingManaging directorTim Lucas 01733 468340Office managerVicky Meadows 01733 468319Group managing director Rob Munro-HallChief executive officerPaul Keenan

Subscriptions 01635 588494. Annual UK subscription £99, two years £168, three years £238. Overseas one year/12 issues £149, two years £253, three years £358.

AM is published 12 times a year by Bauer Consumer Media Ltd, registered address 1 Lincoln Court, Lincoln Road, Peterborough, PE1 2RF. Registered number 01176085.No part of the magazine may be reproduced in any form in whole or in part, without prior permission of the publisher. All material published remains the copyright of Bauer Consumer Media Ltd.We reserve the right to edit letters, copy or images submitted to the magazine without further consent. The submission of material to Bauer Media whether unsolicited or requested, is taken as permission to publish in the magazine, including any licensed editions throughout the world. Any fees paid in the UK include remuneration for any use in any other licensed editions.We cannot accept any responsibility for unsolicited manuscripts, images or materials lost or damaged in the post. Whilst every reasonable care is taken to ensure accuracy, the publisher is not respon-sible for any errors or omissions nor do we accept any liability for any loss or damage, howsoever caused, resulting from the use of the magazine.

Printing: Headley Brothers Ltd, Kent

C O N TA C T U S

Balance your marketingWe examine how essential online content and social media really are and ask if they detract from traditional activities such as customer events and outbound calls?

HR OwenChris Harris, marketing and customer director, reveals why he is building world-class customer communications into every part of the luxury dealer group.

A D V E R T I S E R S ’ I N D E XAccident Exchange .............................21Admark ..................................................65Autos on show.Tv ................................42Barclays Partner Finance ................27BCA .........................................................56

Chris Eastwood Automotive ...........64Dealer Management Services ........55Denison Automotive ..........................57Gemini Computer Systems ............55Glass’s Information Services .........34Heritage Automotive .........................64IMI ............................................................45Infomedia ................................................8

iVendi ......................................................46JCT600 ..................................................63Lloyds Banking Group ......................16Loughborough University ................42Manheim Retail Services .............2, 15Mapfre Abraxas ..................................39Marketing Delivery ............................54Mercedes-Benz UK ............................64

Northridge Finance ............................28Paragon Automotive ..........................11Perrys Motor Sales ..........................65Supagard ...............................................56Symco Training ....................................22Trader Publishing ........................52, 68Trusted Dealers ..................................10Wilcomatic ............................................57

4646565 Jeep Cherokee

A 21st-century marketing toolkitThe latest technology, products and channels to support dealers’ new and used car marketing and longer-term CRM strategy.

Jeep launches phase two of its turnaround with its new volume leader, the Cherokee. Has the brand improved quality and refinement enough to take on rivals in the segment?

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am - automotive management magazine july 2014 preview

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