IMI MAGAZINE TechTalk FEATURES LIST 2018 · p . S s e , n t w d r e o ., s TH y n d e t k t e s ......

30 I IMI MAGAZINE I SEPTEMBER 2017

WWW.THEIMI.ORG.UK I 31

FINANCIAL HEALTH AND WELLBEINGThe report reveals that financial health is the main reason why people contacted Ben for help (49%) in 2016/17. This is an 11% increase year-on-year, with low income reported as the biggest financial challenge for those working in our industry.

MENTAL HEALTH AND WELLBEING Perhaps the most telling statistic Ben reports is the 78% year-on-year increase in people asking for help with their mental health and wellbeing. This big surge in enquiries to Ben about mental health may also have been driven by increased awareness about these issues in the news and by its own awareness campaign, ‘Hats on 4 mental health’, which launched last year. Ben’s mental health campaign is running again this year from October to December. As part of the campaign, Ben will launch a new programme of mental health training for the automotive industry.

PHYSICAL HEALTH AND WELLBEING Nearly a quarter of people who contacted Ben in the last year had physical health concerns, particularly chronic illness and disability. The organisation launched its physical health and wellbeing campaign in July to spotlight this aspect and raise awareness about the key issues people face.

SOCIAL HEALTH AND WELLBEING During 2016/17 concerns about social health rose by 26% compared to the previous year. Just over a third of people who contacted Ben about this aspect of health were affected by relationship breakdown and a further 24% by abuse.

FINDING LONG-TERM SOLUTIONSFinally, Ben reports 6.5% repeat cases (people requesting help with the same issue more than once) in 2016-17, compared to 32% in 2015-16. This is an impressive 25.5% decrease in repeat cases year-on-year, which shows how the support offered by Ben has helped people to find long-term solutions for their problems. This is backed up by the feedback received from people who have been supported.

Having recently released its annual impact report, here industry charity Ben extracts the key findings

THE HE LTH of the industry

For more information on the areas covered in the report please visit ben.org.uk

Ben Impact Report

Finance

Exploring the history and founding principles of the PCP in response to June’s cover story

T he year was 1990, Glasgow was city of culture, Nigel Mansell announced his retirement from Grand Prix racing, Germany was reunified… and Bryan Adam’s ‘Everything I Do I Do It for You’ took up seemingly permanent residence at number one in the charts. At the same time, Ford Options (for a brief period in the 80s known as Red Carpet Lease) reached our shores from across the pond – and so the pilot phase for this new way to drive a car began. The seeds of the Options story were actually sown began

in the 1960s where the founder of Half-A-Car (the pioneers of Trade Cycle Management), J.E. Wolfington, wanted to revolutionise the US automotive industry through his own dealerships with a simple philosophy titled ‘The Story’. This is an extract from the original training material:

The origins of the PCP

Michael DammantFIMIManaging Director, The Mike Dammant Partnership Ltd.@MikeDamt

Take these three cornerstones of Wolfington’s philosophy and underpin it with the ability to eliminate resale risk through guaranteed future value (GFV), and you have a ground-breaking philosophy to sell more cars, more often with the desired outcome for the dealer of a managed trading cycle.

Let’s move back to the 1990s and the Options’ success story with Ford. Ford Credit was tasked with inventing a hire purchase agreement to support the Options model, hence the dawn of Personal Contract Purchase (PCP) which has now become the dominant financial method of selling cars. Through the decades since Options’ beginning, Ford and Ford Credit, as custodians of Options in the UK, have managed the programme. There have only been a few minor blips along the way with unrealistically high expectations of MGFVs for Explorer and Probe (these can be forgiven, as lessons always have to be learnt). SUBVERTING THE MODELSo, why the recent article in this magazine (PCP Under Fire)

asking if the industry is miss-selling motor finance? Well, Half-A-Car stressed from the beginning that its programme was “a planned trading cycle programme, designed to keep new car customers in equity, by eliminating resale risk”. It stressed throughout its training it was not a low rate interest program, a high deposit program, a low monthly payment program or a high residual program. Based on this, the industry has to ask itself some serious questions on how has it taken the ‘golden-egg’ and turned it into a serious concern for the FCA.As the industry now searches for another solution with

personal contract hire arriving on the scene, will the next article in the magazine be titled ‘PCH under fire’ as we take another finance product and use it to create low monthly outlays with no thought to the basic principles of building a planned trade cycle programme for a business to thrive upon – the reward for a Ford dealer back in the 90s.

As an Options expert since 1992, I have enjoyed the original promise by “driving more cars, more often for less money”. By returning to the basic principles of the visionary J.E.Wolfington, the pioneer of trade cycle management, the industry can help future customers do the same.

Package Car ‘Right Car’ We handpick the cars and we handpick the equipment to get the highest resale value two years from now.Planned Trade Cycle ‘Right Cycle’ We want to bring the car back before you get into the high cost

of maintenance and repair and when it has the most demand in the marketplace... and that is 24,000 miles or less.Right Comeback ‘Joy of New’ Able to relive that new car feeling, makes you feel good,

it keeps you up-to-date and it makes you feel secure. You can’t put a price on that!

IMI MAGAZINE FEATURES LIST 2018

FEBRUARY■ DMS■ Electric vehicles ■ IMI Skill Auto report ■ Recruitment■ Social media clinic

MARCH■ Apprenticeships■ Digital marketing clinic ■ The connected car ■ Warranties & service plans

APRIL■ Data protection ■ Fleet management■ IMI Annual Dinner report ■ MOT■ Legal clinic

MAY■ Automechanika

Birmingham preview■ Finance & insurance ■ Marketing on a budget

JUNE■ Independent focus■ Property clinic■ SMART repairs and paint

JULY/AUGUST■ Low emission vehicle solutions■ Used cars & remarketing■ Recruitment

SEPTEMBER■ Cybersecurity ■ Warranties & service plans■ Telematics

OCTOBER■ Autonomous vehicles ■ Used cars & remarketing■ Distribution focus

NOVEMBER■ Digital marketing clinic ■ DMS■ IMI Outstanding Achievers

Awards report■ Sales and marketing clinic

DECEMBER/JANUARY■ 2018 review ■ Further Education sector■ Low emission powertrains

COPY DEADLINE IS FOUR WEEKS AHEAD OF COVER DATE

Providing up to date technical information and advice to help technicians counter the ever-increasing challenges of modern vehicle repair:■ Hybrid & electric vehicle servicing■ Filters■ Diagnostics & engine management■ Steering & suspension■ AC & thermal management■ Engines, gaskets & turbos■ Bodyshop■ Batteries, ignition & rotating electrics■ Winter servicing■ Brakes & clutches

IMI Magazine also welcomes feature ideas, so please send synopses to the editor.

Tim Kiek discusses the challenges faced by independents in uncertain times

A guide to the perfect finish when removing scratches

The ever-evolving relationship between cars and colours

Three common vehicle problems resolved

THE INDEPENDENT SECTOR

PAINT REFINISHING TROUBLESHOOTER

49 50 51

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TechTalk

02-11 IMI_Magazine_28_July.indd 2 28/06/2017 16:37 43-51 IMI September TECHTALK.indd 45 25/08/2017 13:24

CONTACT DETAILS EDITORIAL: Tim Kiek I Editor I E: [email protected] I T: 01992 511521

ADVERTISING, JOBS AND SPONSORSHIP: Wendy Hennessy I Sales Executive I E: [email protected] I T: 07721 127983



TechTalk

TROUBLESHOOTERLeading technical information supplier Autodata shares fixes to three common problems found in modern motor vehicles

3M offers a seven step guide to achieving the perfect finish when removing panel scratches

Seat Leon METALLIC NOISE FROM FRONT WHEELS WHILE DRIVINGQuestion: A customer's 2011 Seat Leon is in for service and the owner has reported a

metallic noise from the front wheels while driving or manoeuvring. We have heard the

metallic noise and have checked the front brake pads and front brake discs which are

in good condition. Have other Leon owners reported this metallic noise?Answer: Yes, this fault has been reported to us by Leon and Altea owners with 2011

model year vehicles. The metallic noise is due to movement between the front wheel

bearing housing and the front hub carrier. Remove the front wheel bearing housing

from the hub carrier. Do not remove the wheel hub from the front wheel bearing.

Apply a light coating of Optimolpaste to the mating surfaces of the front wheel

bearing housing and hub carrier (1). Refit the front wheel bearing housing to the hub

carrier. Repeat the procedure for the opposite side. Road test the vehicle to ensure

the noise has been rectified.

Opel Insignia VIBRATION/RATTLE FROM FRONT PANEL AREA WHILE DRIVINGQuestion: We have a customer with a 2010 Opel Insignia 2,0 Diesel who is complaining of a vibration/rattle from the leading edge of the bonnet while driving.

We have heard the vibration/rattle on road test and have narrowed the fault down

to the radiator upper support panel area but cannot find the cause. Are you aware

of this vibration/rattle?Answer: Yes, we are aware of this fault affecting most 2,0 Diesel Insignia and Astra-J

models up to 12/12. The fault is caused by the turbocharger (TC) wastegate regulating

valve vibrating due to vacuum pressure fluctuations. Locate the TC wastegate

regulating valve on the radiator upper support panel. Fit a vacuum reservoir to the

TC wastegate regulating valve vacuum pipe (1). If the vibration/rattle is still present,

renew the TC wastegate regulating valve. This should rectify the fault.

Citroen DS4 ENGINE WILL NOT START AND ALTERNATOR WARNING LAMP ILLUMINATEDQuestion: We have a 2012 Citroen DS4 petrol 1,6 in the workshop that will not start.

The alternator warning lamp is also illuminated. We have carried out some basic

engine and electrical checks but cannot find the cause of the non-start fault. Have you come across these symptoms together before?Answer: Yes, we have seen the symptoms you described before and they are due

to a turbocharger (TC) engine coolant pump internal short circuit. This fault only

affects DS4 models with 5FU (EP6CDTX) engine code. Check the turbocharger (TC)

engine coolant pump fuse. If the fuse has blown, fit a new turbocharger (TC) engine

coolant pump (1). Replace the TC engine coolant pump fuse. Ensure the correct fuse

rating is used.

P anel repair is a staple of any bodyshop so it is always important to follow best practice procedures.The process may seem laborious to some, but cutting corners will only yield poor results. This will leave customers unhappy, harming your business’ reputation and bottom line.If you follow this seven step guide to panel repair you will be wowing customers in no time, helping you to secure repeat business and word-of-mouth recommendations.

THE MAGNIFICENT SEVEN1. Inspect the damaged area and degrease in accordance with paint company recommendations. After removing any door handles or wing mirrors, use a panel wipe to remove any grime or grease so that the area is properly prepared before you begin sanding.

2. Remove paint from damaged area using a dual-action sander with an abrasive graded between P80 and P120. For a better performance and the simplest use, use a two-handed sander that is robust yet lightweight. For aluminium panels, finer grades should be used such as P120.Before sanding, you may wish to apply trim masking tape to adjacent panels that you want to avoid scratching with the coarse, paint-removing abrasives. This will offer more protection than general-purpose masking tape as it is more robust.

3. Reshape panel as required. Mix and apply body filler to damaged area, avoiding surrounding paintwork.

4. Apply guide coat and hand or machine-sand the filler to the desired shape.The Dry Guide Coat will highlight any high or low spots, along with any other imperfections, making it easier to shape the filler once it has cured. Sanding can be carried out using a P80 Cubitron II Hookit Abrasive Sheet 737U from 3M on a dedicated block.

5. Assess the filled area and apply additional fillers or glaze – though this will not always be required.

6. Apply guide coat then hand-sand the filler or glaze to the required shape and finish using finer P180 abrasive. This is a quick but extremely important step as it helps reduce the need for further sanding later in the process when the repair has been handed on to the paint shop.

7. Using an orbital sander feather around the repair area using P180 abrasives, ensuring that any deep scratches are removed. This will also create a sufficient key to ensure adhesion of high-built primer during the primer preparation process.

STEP 1

STEP 2

STEP 4

STEP 6

STEP 3

STEP 5

STEP 7

Scratching - A PLAN

SUGGESTED PPE

EYE PROTECTION

HEARING PROTECTION

RESPIRATORS

1

1

1



Over the last three years there

has been a detectable increase

in the incidence of cyberattacks

on vehicles, exacerbated by the

fact that more recent models come

fitted with internet connected

technologies and safety features.

However, some of these devices have

not been adequately protected from

the more determined hackers.

For example, during a series of hack

attacks starting last Spring, 24 different

cars from 19 different manufacturers

were broken into using a radio

frequency (RF) exploit known as the

‘amplifier attack’. This inexpensive, yet

ingenious, exploit involves amplifying

the radio frequency in these cars

remotely to trick the keyless sensor

technology into thinking the vehicle’s

owner is in close proximity – thereby

opening the targeted cars from up to

100 metres away.

One exploit worked as follows: the

hacking team created two radio devices

– one near to the victim’s key (perhaps

placed close to the back door) and the

other, the receiver, close to the target

car itself. The radio near the car

impersonates the key and triggers

the car to unlock. The devices can

work together up to 90 metres.

Low cost radio amplification kits can

be purchased for as little as £150 and

used to boost the signal between the

car and the key fob by several hundred

metres, regardless of where the original

car key is, so that a thief could stay out

of sight, perhaps around the corner or at

the end of your road, while opening

your car remotely, then calmly walking

up to the now-opened car, turning on

the ignition and driving away.

A Ford Galaxy, Audi A3, Toyota Rav 4,

BMW 730d, Volkswagen, Golf GTD and

Nissan Leaf were all found vulnerable to

this type of threat at the time. The fact

that 95% of European car brands use

keyless entry fobs speaks for itself.

JEEP IN JEOPARDY

Back in mid-2015, a highly-publicised

‘stunt hack’ of a 2014 Jeep Cherokee

in the States resulted in Fiat Chrysler

having to complete a 1.4mn vehicle

recall, fixing the vulnerability through

an upgrade to its Uconnect software

which powers new style digital

dashboard displays which had been

fitted into three different marques

in the US.

The exploit, that was uncovered by

Wired Magazine, allowed hackers to take

control of the vehicle’s infotainment

systems, working through controls and

sending CAN messages to alter the car’s

settings. They demonstrated the ease at

which they could shut the engine off

BEHIND THE TIMES?

Scary stuff, especially when you think

more and more high-end, computer-

driven safety-oriented functionality

is being put into prestige vehicles right

now, and that’s before we even see

volumes of self-driving cars hit the

streets. So, the key question remains:

is vehicle security keeping up with best

practice and techniques in the business-

based IT security world and, if not,

why not when lives are clearly at stake?

One expert, Professor Rakotonirainy

from Queensland University of

Technology’s Centre for Accident

Research and Road Safety, says that

there’s a lag in hardening security of

computer-driven technologies being

put into cars. He has researched the

security systems of existing fleet,

future autonomous and

connected cars and found

there was little protection

against hacking: “The

security protection on cars

is virtually non-existent,

it is at a level of protection

that a desktop computer

system had in the 1980s;

the basic security

requirements such as authentication,

confidentiality and integrity are not

strong,” he says.

“What this means is that as vehicles

become more and more connected

and autonomous, with the ability to

communicate with other vehicles and

infrastructure through wireless networks,

the threat of cyberattacks increases.”

Professor Rakotonirainy says while

most vehicles built within the last

decade have features allowing them

to connect to the internet and

communicate with devices within the

vehicle, the development of intelligent

transport systems means future cars

will be connected to wireless networks

as standard and thus offer a higher

level of automation.

He also has a warning concerning

the CANbus: “It can be used to control

almost everything such as airbags,

brakes, cruise control and power

steering systems – and it can be

accessed locally or remotely with

simple devices.

“This is just the tip of the iceberg as

future cars will feature a tremendous mix

of wireless networks and offer numerous

opportunities to improve safety,

entertainment

and comfort.

“For example, cars

will be wirelessly

connected to other

cars. If a vehicle stops

ahead, a warning can

be issued to drivers

behind to slow down,

or vehicles can

automatically take

control and slowdown without the

driver’s intervention.”

Professor Rakotonirainy adds that

whilst new ‘connected’ features have

the potential to improve road safety,

if they are hacked people’s lives could

be put at risk. “If someone hacks into

a vehicle’s electronics via a wireless

network and exploits the current

security loophole, they can track

or take control of it,” he warns.

THE DEALERSHIP THREAT

These stories are the stuff of nightmares

for manufacturers. However, car

dealerships are not immune from the

increasing cyber threat. Rapid adoption

of increasingly sophisticated IT systems

in dealerships, together with the arrival

of more connected cars on their

forecourts, puts their central

systems in the line of fire.

Dealers’ DMS, CMS, EMACS and

other data-intensive IT systems hold

vital information about vehicles sold

and maintained by them. A hacker

might decide that it’s easier and

potentially more lucrative to target

a dealership’s central systems and,

from there, hack into multiple vehicles

on their books – or simply steal and

sell these vital details to thieves.

The key is to be aware of the

fact that there are more and more

networked IT systems in use in your

dealership and in the cars you are

selling and servicing. This inevitably

means you are going to need to beef-up

your IT skills across the board, while

considering IT security as a key part

of this upskilling push.

Paul Smith FIMIManaging Director, traka

and, at low speed, even disable brakes

and drive the car off the road.

More recently, an autonomous

vehicle was hacked by exploiting the

vulnerabilities of the LiDAR (light

detection and ranging) which enables

many autonomous vehicles to build a 3D

picture of the hazards around it by firing

multiple laser beams out from all

directions and measuring the speed of

pulses bouncing back from solid objects.

Uber sensibly hired a pair of

renowned car hackers to help them

develop security for their planned new

self-driving taxis. It proved to be a good

move by Uber because hackers were

able launch a denial-of-service attack

against LiDAR-based self-driving cars

by overwhelming the car’s sensors with

images of fake vehicles and other

objects using nothing more complicated

than a laser pointer worth less than £40.

Researcher in this same area, Jonathan

Petit, described how he recorded

the pulses emitted by objects with

a commercial LiDAR system that

self-driving cars use to detect objects.

By beaming the pulses back at a LiDAR

with a laser pointer, he could force the car

into slowing down or stopping to avoid

hitting non-existent objects. Petit

explained that spoofing objects like cars,

pedestrians or walls was fairly simple –

and cost virtually nothing to put together.

“A hacker might

decide that it’s

easier and

potentially more

lucrative to target

a dealership’s

central systems”

Looking at the cybersecurity threats posed to connected vehiclesC NNECTED THREATS

Cybersecurity COVER STORY

42 I IMI MAGAZINE I SEPTEMBER/OCTOBER 2017


Vehicle Crime

Vehicle Crime

A sk anyone today who deals in the enforcement, prevention and disruption of vehicle crime and they will tell

you that the ability of police to both deal with and control it in the future appears pretty uncertain. Even with the political promise of an additional 10,000 officers on offer, the belief is it still won’t elevate car and motorcycle theft from its current low priority position. Government officials, senior police officers and quite a few of the country’s decision-makers attending the recent UK National Vehicle Crime Conference held in Loughborough were unanimous in expressing their concerns regarding this situation.

One topic discussed more than any other was the continued depletion of police resources and the consequent loss of expertise, so important nowadays, in dealing with modern vehicle crime.

Notwithstanding the current terrorist events that have taken place, and the subsequent huge demand for the deployment of officers elsewhere,

Met has thrown everything it has to address the problem with Operation Venice and, whilst it has achieved remarkable success, there appears to be, as one officer explained: “Literally thousands of them and simply not enough of us!”

There are thankfully some success stories, too, and it’s here that a case could be made for commercial involvement to assist the police in all but the arrest.

For instance, any allegation of fraud nowadays merely requires you to go online to ‘Action Fraud’ and fill in the report yourself. An auto-generated crime number is obtained and your crime may or may not be investigated. The sheer volume of this behind-closed-doors activity and the tools available to undertake the tasks is staggering.It is being suggested that vehicle theft should follow a similar route, with insurers and financiers notified immediately and automatic number plate recognition (ANPR) used to locate the vehicle.

ON TRACKThe rise in popularity of the tracking device, for instance, has seen, over the last 12 months or so, companies posting recovery rates

it was still agreed that an extremely high and unacceptable rise has been seen in the latest vehicle theft figures; figures which show that organised car criminals continue to tighten their grip.

CONSOLIDATING RESOURCESNo comfort then from the current news from around the UK that several adjoining forces, in some cases up to four constabularies, have had to compromise their vehicle units and agree to deploy just one officer between them to deal with all motor vehicle thefts – often within an estimated 250 mile radius.

Ironically, a huge amount of vehicle crime is now recorded on social media sites for all to see, and the lack of any officers available to deal with it seems to be a key factor.

Evidence exists that even minor league thieves, operating as ‘local’ gangs using motor scooters, particularly in the London area, now work alongside hardline organised criminals in stealing high value cars and commercial vehicles. Indeed,

assets of all kinds stripped from vans and HGVs have now become a serious issue in itself, with many stories of dealerships and private contractors losing their livelihoods because of multiple attacks. One unfortunate consequence of this has been for insurance companies to either raise premiums or, in some cases, offer no insurance at all.

MORE STOLEN THAN SOLDThe news that more motorcycles and scooters are now being stolen than are sold in the UK was undeniably a shock; the bulk of these thefts imputed to the gangs of young scooter riders, some as young as 12 years of age, who with their peers appear to commit most of the violent robberies and burglaries that occur – particularly in and around the capital where more than half of

all UK power two wheeled crime is now recorded.The media reports almost daily on police numbers and many

constabularies – left with a new and controversial ‘no chase’ ruling – have had to form their own taskforces, often consisting of just one or two officers that will focus on the violent thugs and the crimes they commit in their own force areas. In London, the

as high as 90%. According to officers on the ground this technology makes their work much easier, particularly as many tracking companies now have their own efficient back-up teams and support systems. Another huge success story has been the new invisible or covert DNA markings which, although invisible to the naked eye, can positively identify an owner or his vehicle. The police has found great comfort in the ability to obtain both the identification and true provenance of stolen vehicles that have had their serial numbers removed. These systems have become so successful they have taken on the mantle of a theft deterrent, forcing many thieves to find non-marked vehicles to steal for fear of being found in possession of stolen property. Figures for both plant equipment and motorcycles that have been so marked have shown a distinct decline in theft, while non-marked items have risen at a corresponding level.

A COLLABORATIVE APPROACHWith the lack of police officers allocated to vehicle crime, the future will clearly have to be one of both partnerships and sponsorships if it is to be controlled.

Insurance company investigation

units, for example, are already on a par with the police in relation to the knowledge and expertise required in vehicle crime investigation. No doubt in the future they will take on a more proactive role in their own research and prosecution procedures – clearly a move that would satisfy both parties. Their successful efforts in eradicating the ‘Crash and Cash’ phenomenon have been remarkable and it adds substance to this already proven partnership. Indeed, many forces now rely

heavily on insurance company support to deal with not only their crime prevention activities but even their crime operations which, in some cases, would not have occurred without insurance support.

There are many companies and individuals gainfully employed in the UK today dealing with the enforcement, prevention and disruption of vehicle crime and they deserve to be recognised for their knowledge, much of which is being offered freely to the police.

The priorities of today’s policing are those that we all recognise, and I am convinced that any partnerships that can be created will play a vital role in the future battle against the car criminal.

VEHICLE CRIME STATS

2017*

Jan 36,164

Feb 34,463March

39,217April

36,509May

38,439*Source – UK Crime Stats

The vehicle crime SCENE

DR KEN GERMAN LOOKS AT HOW AUTHORITIES ARE TACKLING VEHICLE CRIME IN LIGHT OF DIMINISHED RESOURCES

Dr Ken German FIMIDirector, The International Association of Auto Theft Investigators

“The news that more motorcycles and scooters are now being stolen than are sold in the UK was undeniably a shock”

REGULARS■ News■ Commercial vehicles■ Motorcycles■ Frontline■ Independent

insight■ Business ■ Legal link■ My IMI



W e mentioned some time ago the £3.4mn investment being made in Glasgow by Ducati in the shape of Ducati Glasgow and Ducati Triumph: two adjacent showrooms at the newly-created Motorcycle Village five miles from the city centre. At their official opening, Ducati UK’s Managing Director Tim Maccabee was unsurprisingly full of praise for the modern facilities and was quick to point out that in today’s world dealers who fail to invest will get left behind. In a lengthy interview he stated that when people were buying expensive machines (the Ducati Superleggera being £72,000) there was certain expectation from the customer. He cited car firms replete with attractive facades, coffee bars, lounges and plenty of test vehicles to drive and sit in etc. as exemplars of what

motorcycle dealers should be striving for. Maccabee also pointed out that he felt the whole face of motorcycling was changing and, whilst traditional diehard motorcyclists may not like it, the onus is on the industry to provide a multiplicity of solutions to suit the tastes of everyone, not just a select few. Not everybody, he argued, wants to get cold and wet and people should not have to apologise for being fair-weather riders!THE CORPORATE PARADIGMDucati is a premium brand with just 37 dealerships and can of course insist on a corporate look to its dealers’ premises given the decent margins available on its products. Harley Davidson has done so for years and other brands, including Japanese, have done so too. Anyone of a certain age will remember the Honda 5-Star dealership programme (which faded out as quickly as it appeared), and recently BMW has been assimilating its motorcycle business into its large car showrooms to keep up corporate appearances.However, speaking to a dealer friend who has to base his dealership over two sites, he wasn’t enamoured at a corporate diktat stipulating how he must decorate his premises and display machines – particularly given

the burden of cost to make these changes falls on him. The South East, where he is based, as we all know has high property and land prices prohibiting dealers from expanding further, even if they wanted to. Besides, in a market dropping in overall numbers and decreasing in margins, it is only the brave, or those with outside investment, that will go the way of Glasgow.

SERVICING COSTSWhilst nobody would argue with Maccabee’s points regarding customer expectations, it was interesting to note that the workshop side of a dealership was not mentioned. It is here, of course, that the dealer is expected to excel and be able to service and maintain ever more complex machines which require a whole raft of special tools in order to carry out repairs. Indeed, one dealer I know has invested £100k in such tools over a 15 year period. As we are all aware, diagnostics are now integral to successful repairs and further costs are accrued in updates for new models. Other costs pile up in the shape of items like standardised tool cabinets, work equipment

Change is comingWhy the industry is on the cusp of a step change, whether it likes it or not

News

BY IAN KERR MBE

3% decrease in combined registrations of motorcycles and mopeds in the EU in the second quarter of 2017 compared to the same quarter last year

MOTORCYCLES

and also miscellaneous items such as the safe disposal of tyres and oils etc. and even things like sofas and coffee machines.When all these costs are considered in their totality, it makes traditional routes into the industry, as followed by many an ex-racer, extremely unlikely unless there is serious financial backing in place. Many of the 'old school' dealers who started in such a way will no doubt find many of Tim Maccabee’s remarks unpalatable, as will hardcore high mileage riders, like myself, who ride in all weathers. But, when MOT testers tell of year after year increases in testing bikes of extraordinarily low mileages, we have to accept change is inevitable.Certainly the motorcycle trade appears to be going the same way as general retailing, with a move away from high streets to business parks with plenty of parking and modern buildings, as per Ducati in Glasgow. Customers expect greater professionalism in all areas of a dealership and, thanks to the internet, they are generally better informed than were in previous years when they had to rely on (sometimes) biased road tests.EASTERN PROMISEThe National Motorcycle Dealer Association (NMDA) has announced it is currently watching with great interest a Chinese car manufacturer which has launched a new global brand and is pursuing a retail marketing option to cut out dealerships as we know them.Bear in mind, Kawasaki has already invested and launched its own dealership in the UK in an area where it could not get anyone else to fund it – so things are definitely changing. Tim Maccabee will not be alone in his thinking and many others in the industry will be closely monitoring the Glasgow Motorcycle Village to see if it works and whether they, too, need to look at their own operations!

In brief

Triumph and Indian manufacturer Bajaj are to work together to develop a range of mid-capacity motorcycles and to distribute the machines worldwide. Announcing the global non-equity partnership, Triumph said: “The objective of this partnership is to deliver a range of outstanding mid–capacity motorcycles benefiting from the collective strengths of both companies.“This partnership will enable Triumph to significantly expand its global reach by entering new higher volume market segments, especially within emerging markets across the world.”For its part, Pune-based Bajaj will gain access to the iconic Triumph brand, enabling it to offer a wider range of motorcycles within its domestic and international markets.

• Austrian manufacturer KTM AG has opened a new R&D Centre in Rosenheim, Germany. The new site benefits from its close proximity to a local Higher Education institution and the resulting pool of experts.

• Yamaha has revealed that global revenue from powered two-wheelers over the first six month period of 2017 was 6.6% up to £3.53bn. Suzuki’s first-quarter results suggest a resurgence as worldwide revenue from bikes and ATVs in the April-June period rose by 21.6% to £419.9mn.

AN INDIAN TRIUMPH

Ducati Motor Holding S.p.A. is an Italian company based in Bologna but now owned by

German car manufacturer Volkswagen. Started in 1926 by Antonio Ducati and his three

sons, the company originally manufactured vacuum tubes and condensers. Having survived the war, in 1950 the company joined many others in offering small motorised

bicycles and in 1952 moved into the production of its first proper motorcycle. A year

later the company split its motorcycle and electronic business and by the early 1960s

was producing the world’s fastest 250 motorcycles. Since the mid-eighties, despite its success, it has gone through a number of parent

companies before being assimilated into the Volkswagen group.

Ducati: an abridged history

• Norton and Chinese manufacturer Zongshen have entered into a 20 year exclusive design and licensing agreement allowing the Chinese manufacturer to produce an all-new 650cc twin engine. It is believed to have been jointly engineered and developed by Norton and Ricardo to meet Euro 4 standards.



News

BY TRISTAN YOUNG 1.2mn Citroen global

sales in 2016

FRONTLINE

“Are you sitting comfortably?”

Well Citroen’s global boss

Linda Jackson hopes to be

as she places her bets on the

all-encompassing state of ‘comfort’

as the brand’s ethos.

Arguably, you could say that Citroen’s

have always proven comfortable in the

manner they convey occupants along

the road. However, Jackson’s comfort

strategy goes beyond ride quality.

“Comfort has always been part of

Citroen, that’s one of the reasons we’ve

decided to take the asset. We’ve

always had comfort, but now we’re

coming back to it. The best indicator of

this is sales of the new C3, which have

topped 130,000 vehicles in seven

months – well in keeping with our

objective.”Jackson isn’t just talking about

the car’s suspension but also the

ease-of-use which contributes to

overall comfort. On top of this she

is also promoting ease of sales as

a comfort factor: “This translates into

retail as a new retail concept,” she said.

“We did a redesign of our dealerships

in the UK back in 2009/2010, which

aimed to create very nice dealerships,

very clean – white and red – but a bit

clinical and hospital like. We’ve evolved

this to add more colour and comfort

– changing the journey in the

dealership so it’s much more customer-

oriented. The Maison Citroen concept

we’ve opened exemplifies this. There’s

one in Paris and we want to role it out

across the world.”

It’s not just design changes that

characterise the new retail concept, as

Linda explained. “It’s how we talk to our

customers, how we’ve developed our

services and website. The feel is about

making your life easier and simpler.

A good example is the Simply Drive

which is a one-stop-shop for finance,

insurance and servicing.”

READY FOR VAUXHALL

The comfort brand positioning should

also stand Citroen in good stead ready

for the addition of Vauxhall to the PSA

line-up. “We’re in due diligence at the

moment so we can’t say anything, but

what Carlos Tavares has said is that

there is no overlap: Citroen customers

don’t buy Opels and Opel customers

don’t buy Citroens – and the same

applies to the other PSA brands which

all have clearly defined positions,” said

Jackson. “We don’t know what Opel will

A matter of comfortOn Citroen’s plans to recraft its

brand as the home of comfort

HOW TO SELL IT:

SKODA KODIAQdo, that’s up to them. When due

diligence is completed they will present

their positioning. But for us it doesn’t

change anything.”

Explaining how the comfort message

would impact Citroen’s model line-up in

future, Jackson said: “Whenever you

introduce a new model you have to be

careful that you don’t just

take that funky, quirky look

for a small car into a large

car, because that’s not

what customers want. But

you can introduce a

beautiful large car and

take it in a different

direction. This is why the

C-experience [Citroen’s

large car concept from the

Paris Motor Show last year]

has no leather on it or no

shiny leather, things that

are the markers of

traditional luxury cars.

However, it still created a

feeling of high-end,

flagship, top of the range.

For me it’s our challenge

as to how we take a

Citroen and do that.

“We can’t just make the

standard recipe,” Jackson

continued. “There’s still a

place for a larger saloon.

When I took over the role

in 2014, I looked at the

product plan (and we were

separating DS at the time)

and found we had a few

little gaps to solve and the

biggest one was the lack

of an SUV – so I decided

to prioritise SUVs.”

FIGURING EIGHT

“My core model strategy is eight

silhouettes which cover the world. It

includes small cars, medium sized cars,

SUVs and large cars. Every one of

these silhouettes will be multi-regional.

The very fact that I want to grow my

sales outside Europe to 45% from 35%

by 2021 is driven by the fact that my

core models have to be multi-regional.

It’s crucial to how we grow from 1.2mn

to 1.6mn by 2021. If you count the

silhouettes then now we’ve got about

14 or 15 of these models.”

Important because…

The Kodiaq large SUV,

available with a choice of five

or seven seats, is an all-new

model for Skoda which means

incremental sales. And

because it’s a new model this

means a large proportion these

sales will be conquest.

Why would

someone buy it…

It’s not only the best value car

in the class, but also simply the

best car in the class. Buyers

will choose the car for its huge

boot, great cabin space and

excellent build quality. And like

all SUVs buyers like the high

driving position and good

visibility this affords.

Up-sell opportunities…

Buyers really should be going

for the seven-seat versions

because when it comes time to

sell, these will be worth more

than the five-seaters. Metallic

paint is a must and other

options include the Children’s

pack for £220 which adds rear

window blinds and door locking

override from the front seats.

Best to gloss over…

The Skoda Kodiaq is

such a good car that there’s

very little to gloss over. If

you’re being picky, then the

keyless entry is only active on

the front doors, not the rears.

Price and finance…

Prices start from £22,190

for the entry level Kodiaq S 1.4

TSI 5-seater. The popularity of

the Kodiaq means there aren’t

any huge offers on the car.

However, Skoda’s Solutions PCP

scheme makes the car available

with a representative 5.6% APR

interest rate.

Who would buy it…

For the typical buyer,

the Skoda Kodiaq is likely to be

the main family car so will be

bought by parents with school-

age kids. Although buyers may

not have more than two or three

kids and need seven seats they

will use them occasionally and

the huge boot regularly.

Also on the list…

Buyers are likely to be also

looking at the Hyundai Santa Fe,

Nissan X-trail and Kia Sorento.

On the road…

The Kodiaq is

surefooted on the road,

particularly in all-wheel drive

form which eliminates all

front-wheel scrabble you

can get in damp or slippery

conditions. The steering is

light and precise and can be

set to have more ‘weight’ if

Sport is selected from the

drive modes. Overall the ride

is comfortable and forgiving

and refinement is up with the

class best.

40%reduction

in Citroen’s European

sales proportion of diesels

since 2013

1.6mnCitroen global

sales target for 2021

21%reduction in UK

sales for H1 2017 compared to H1 2016

Linda Jackson was

appointed CEO of

the Citroen brand on

1 June 2014. She has

more than 35 years’

experience in the

motor industry in a

variety of financial and

commercial positions.

Jackson has an MBA from the University of

Warwick and held various positions in finance

and sales at MG Rover between 1977 and

2004. She joined Citroen UK in 2005 as the

finance director. In 2009 she became finance

director of Citroën France before moving

back to the UK in 2010 to assume the position

of managing director.

A LIFE IN CARS

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