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HEADLINE NEWS: MP calls for national adpotion of Kitemark

HEADLINE NEWS: MP calls for national adpotion of Kitemark

A Conservative MP is calling for the BSI Kitemark scheme to be made standard for UK garages.

Robert Halfon, MP for Harlow, tabled a Motion in Parliament after making a radio appearance alongside Kitemark champion Quentin Wilson in which he endorsed the scheme.

Quoting BSI-commissioned research, he said: “The Government needs to review protection for motorists when they are visiting a garage, with over half of the population not confident in the work that garages have carried out.

“We need to ensure they know what is being done on their vehicle and they are presented with a clear and understandable service – every time. I am recommending that the Kitemark scheme operated by BSI is the standard that garages adopt.

“I have put forward this suggestion and I will also be actively lobbying to ensure that garages service cars to the highest standards…”

In a further statement, he said: “It is good for the car mechanic industry, good for customers and good for society. Most people have heard of Kitemark as it is on our plugs and other household items.”

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HEADLINE NEWS: MOT TEST’S NEW 4-2-2 THREAT

HEADLINE NEWS: MOT TEST’S NEW 4-2-2 THREAT

Just one year after the trade convinced the previous government to scrap proposals to reduce the MOT test frequency from once a year to every two years, the threat of a 4-2-2 regime has once more reared its ugly head.

In a Parliamentary Question put before the House of Lords in July, Lord Marlesford, a Conservative peer, asked whether the new Coalition Government was considering a review of MOT frequency.

The response he received was a worrying: “Yes, we intend to look at the issue of MOT test frequencies later this year.”

The Retail Motor Industry Federation and the MOT Forum have written a joint letter to the Minister for Transport expressing the seriousness of changing the system and outlining the cost to society. At the time of writing, no formal response had been received.

In a detailed study published in 2008, the Department for Transport calculated that without the annual MOT, the country could witness a horrific increase in road deaths – up to nearly 2000 lives per year – and cost the country more than £6 billion.

The DFT also estimated that adopting the 4-2-2 system would cost the trade some £480 million per year and result in 40,000 job losses.

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HEADLINE NEWS: UK Right to Repair Campaign disbands

HEADLINE NEWS: UK Right to Repair Campaign disbands

The UK Right to Repair Campaign Strategy Group has disbanded. The Group was formed in February 2007 to lobby for the reinstatement of a Block Exemption Regulation for the independent aftermarket.

It achieved this objective – on June 1, a new sector specific Regulation with accompanying guidelines came into force.

Jim Mazza, the Campaign’s chairman, said: “The motor vehicle specific regulations and guidelines introduced on June 1, 2010, which will run until 2023, are a fantastic outcome and far beyond my expectations.

“These coupled with other European legislation and directives provide strong protection for the independent automotive aftermarket and ensure an ongoing competitive environment from which the motorist will benefit. The UK Strategy Group is very satisfied with the outcome of the campaign.”

He added: “The Campaign united the entire independent aftermarket, which added huge weight to our arguments as we were able to speak on behalf of the whole industry.

“The success of the campaign isn’t due to the efforts of a few people, but the actions of everyone who has helped in providing funding and creating awareness by distributing literature, having an R2RC
presence at trade shows, exhibitions and conferences and using the R2RC logo. This shows what can be achieved by working together.”

The R2RC logo will also be withdrawn. It had been has been licensed for use by the international aftermarket association, FIGIEFA, which spearheaded the pan-European Campaign.

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HEADLINE NEWS: ECP opens new national mega depot

HEADLINE NEWS: ECP opens new national mega depot

Euro Car Parts has opened a new 400,000 sqft national distribution centre in Tamworth – investing £15 million in new stock in the process.

Located off junction 10 of the M42, the centre is in the middle of the UK motorway network and has a major rail-freight terminal less than half a mile away.

With over 103,000 part lines, the centre provides ECP branches across the UK with overnight delivery six days a week.

“This is the largest single investment ECP has ever made,” said owner Sukhpal Singh. “It will improve accuracy and speed when it comes to replenishing branches, giving us maximum reach across the country with minimum journey times.”

The centre, which has a mezzanine, 16 dock levellers and a minimum 12 million eaves height, also benefits from the latest wireless warehouse management technology for efficient monitoring, picking and ordering of stock.

“This centre lays the foundation for future growth and opens up strategic buying opportunities, allowing us to expand products and ranges,” said Singh.

With 12,000 sqft of open plan offices, a training centre and conference room accommodating 100 people, the new building could also become ECP’s new HQ.

Eight more distribution hubs are set to open across the country – each holding 40,000 stock-keeping units and each incorporating training centres for staff.

“This lays the foundation for ECP to become a true national player,” said Singh. With two new branches in Kent and Wolverhampton now up and running, plus another 15 due to open by the end of the year, it is difficult to disagree.

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HEADLINE NEWS: Service & repair demand to fall 25% by 2015

HEADLINE NEWS: Service & repair demand to fall 25% by 2015

The number of garages operating in the UK has plummeted by a third in the last 10 years, and the trend is set to continue. That’s according to the latest findings from industry monitor Trend Tracker.

Confirming the suspicions of many in the aftermarket, the report, based on a survey of 17,000 British motorists, charts the falling demand for  car servicing and repair.

The decline appears to be driven by a number of factors, including motorists using their cars less – according to the National Travel Survey, annual mileage fell by 9 percent between 1998 and 2008 – extended service intervals and more reliable vehicles.

Indeed, the report points out that improvements in vehicle build quality are eroding service and repair demand by 3-4 percent every year.

The crisis in the new car market also has a part to play, according to Trend Tracker. The number of cars in use shrank by  almost 1 percent in 2008/09 – the first time the UK car parc fell since the second world war.

All of which has resulted in reduced work for garages. In 1999, there were, on average, 2.04 service and repair transactions per motorist but by 2009, this figure stood at 1.5.

However, the report does have some nuggets that should inspire optimism: while demand for repair work is down, the value of the work has risen. At current prices, the value of the market is up 2 percent on 1999, driven primarily by an increase in labour charges.

And the report also highlights the competitiveness of independent workshops compared to their franchised counterparts. While main dealers have ramped up their prices by 36 percent above inflation since 1999, independents have raised theirs by just 15 percent above the Retail Prices Index.

Furthermore, more motorists appear to be switching their allegiance from their franchised dealer workshop. In 2009, 27.8 percent of motorists used their main dealer for repair work, down from 28.4 percent in 2008. And it seems that, despite their best efforts, the main dealers are not yet making inroads into the four-years plus car market.

Trend Tracker director and analyst Chris Oakham said: “These declining trends in service and repair demand will squeeze providers to the point where we forecast there will be 44 percent fewer service/ repair outlets by 2015 than there were in 1999.”

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HEADLINE NEWS: IAM gets own BER but garages not out of woods yet

HEADLINE NEWS: IAM gets own BER but garages not out of woods yet

The independent aftermarket is celebrating after the European Commission adopted a new sector-specific Block Exemption Regulation last month.

With just days to go before the previous competition rules expired, the new BER with supplementary guidelines was passed into law. It came into force on June 1, 2010.

The new rules, which were agreed to by the Commission after three years of intensive lobbying by the pan-European Right to Repair Campaign, are intended to increase competition in repair and maintenance by improving access to technical information for independents and by making it easier to use alternative spare parts.

The rules will also allow the Commission to tackle vehicle manufacturers’ abuse of warranties when they request that cars are serviced only in authorised garages.

Industry commentators welcomed the new rules. However, they warned that the fight for full access to technical information is not yet over.

In order for independent operators to gain access to the information classified as “security data”, they will need to prove they are reputable and undertake not to misuse it.

David Moran, head of Independents at the Retail Motor Industry Federation, told CAT: “What we need to establish through the Commission and the vehicle manufacturers is, what exactly needs to be accredited. Part of this should be about ensuring the safety and security of the information and of the product, but at the moment, it’s a grey area.”

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HEADLINE NEWS: Autodata sinks technology pirates in counterfeiting settlement

HEADLINE NEWS: Autodata sinks technology pirates in counterfeiting settlement

Autodata has struck again in its campaign to stamp out Intellectual Property crime.

The Maidenhead-based data company reached an out-of-court settlement with a pirate seller of its products.

Autodata was alerted to the activities of an unauthorised supplier by one of its customers in the London area.

It responded by instigating a covert enquiry by its IP team, which carried out test purchases of the software being sold illegally.

A spokesperson for Autodata said: “This result followed several reports we received from customers concerned about approaches from counterfeit software sellers.

“We continue to work closely with Trading Standards to highlight any issues and concerns that garages have with this activity.

“Anybody considering making counterfeit copies of our software, and particularly those who then attempt to sell these out-of-date examples, should be aware of the danger this poses to the public and that the heavy hand of the law is on the side of the IP rights holder.”

In this case, the vendor had moved to another part of the country in an attempt to escape prosecution, but evidence was gathered and his operation traced to a new residence.

When approached with the evidence against him, he was confronted with settling against damages or facing court action.

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HEADLINE NEWS: Andrew Page sells to private equity firm

HEADLINE NEWS: Andrew Page sells to private equity firm

Andrew Page has sold the majority stake in his family firm to Phoenix Equity Partners in a deal that values the company at £100m.

The announcement confirms rumours of a buyout sparked by the north-eastern factor chain’s rapid expansion in recent months.

In 2009, new branches were opened in, Derby, Nottingham, Peterborough and Coventry.

And in March, the company confirmed that its 46th depot would open in Leicester on April 6, 2010.

This will be followed by a new operation in Kings Lynn.

The company was formed in 1946 and has been in full Page family ownership since 1979.

It now operates 46 sites and employs 1100 people.

The transaction was led by Andrew Page’s existing MD, Mark Roberts, alongside finance director Mark Day.

Page himself will continue to be involved as chairman of the trading company.

This is the 12th investment from Phoenix’s £375 million fund, which was raised in April 2006.

AP is Phoenix’s second recent automotive sector transaction. It sold Nationwide Autocentres to Halfords in February.

Andrew Page said the deal would allow the company to achieve further growth.

John Rastrick, a partner at Phoenix, added: “We see substantial further growth potential for the business and are committed to supporting the Company to achieve this.”

New bank funding for the deal was provided by HSBC, RBS and Lloyds TSB.

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HEADLINE NEWS: Unipart seeks factor franchisees to grow market share

HEADLINE NEWS: Unipart seeks factor franchisees to grow market share

Unipart's network has traded for 25 years

Unipart's network has traded for 25 years

Unipart is on the hunt for new recruits to its Express Factors network after redeveloping the business format as a franchise programme.

Express Factors has traded for more than 25 years, distributing Unipart-branded products to workshops.

And Unipart has begun a 5-year strategy to grow its share of this market.

The company is targeting potential recruits from a variety of backgrounds, including entrepreneurs, investors and managers of similar businesses.

Franchisees could also be managers or owners of VM dealerships wishing to expand to become an all parts supplier, motor factor or accessory shop.

Gary Carscadden, Express sales and operations director, said: “An outlet can be a stand-alone business operating in its own territory, or a ‘bolt-on’ module working alongside a complementary host location, for example, a car dealership.”

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HEADLINE NEWS: Bennett goes it alone as UK’s Cifam braking distributor

HEADLINE NEWS: Bennett goes it alone as UK’s Cifam braking distributor

The Cifam hydraulics range

The Cifam hydraulics range

Richard Bennett is the new kid on the block in the braking world.

And his company, Global Braking Systems, has scored a major coup, having been appointed by Metelli Co as its official UK Cifam distributor.

Global will sell the complete Cifam branded range of parts into the UK aftermarket and will launch with the brake hydraulics portfolio.

The range includes:

  • wheel cylinders
  • brake & clutch master cylinders
  • slave cylinders
  • press regulating valves
  • brake shoe kits
  • brake hoses

Based in a 4k sqft distribution centre in Warwickshire, GBS promises to offer factory gate prices, exclusive brands and OE quality products all on next day delivery.

It is seeking to establish relationships with UK buying groups and independent motor factors.

With over 15 years experience in the UK car parts aftermarket, Bennett said: “I have worked with [Metelli] successfully in the past, and look forward to a new beginning.

“We have OE quality manufactured products with the official Cifam brand whereas a lot of companies selling these products are private label, non-manufacturers.”

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