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RING LAUNCHES EUROPEAN OFFICES

RING LAUNCHES EUROPEAN OFFICES

Lighting and accessories brand Ring Automotive has invested £200,000 in a Paris office which is now open for business.

The expansion is part of the firm’s product development plans, that has led to some new appointments within its international team.

Carlos Carrido, Stephan Schneider and Sebastien Richir have been appointed as Sales Managers to improve exports to customers in countries including Spain, Portugal as well as Germany, Austria and Switzerland. Richier will join Ring’s International Business Director Gonzalo Vargas-Zuniga Cruz at the EU office in Le Dome, part of the Roissypole complex of buildings at Roissy Charles de Gaulle International Airport, while the other recruits will work across the continent and have access to the HQ as and when required.

“Approximately a quarter of our sales can be attributed to exports giving some indication of the opportunity that extending our presence across Europe represents,” said Cruz. He concluded. “We know that our sales channels and performance across these markets has significantly improved over recent years and this investment will further reinforce our commitment as we build our portfolio of customers.”

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DANA MAKES BID FOR GKN

DANA MAKES BID FOR GKN

U.S-based car parts maker Dana has made a bid for embattled engineering giant GKN.

A report in the FT says that Dana will offer $6bn for the drivetrain division and will consider opening a secondary listing on the London stock exchange.

GKN’s drivetrain business combined with Dana’s existing contracts would give shareholders 47 percent of the world’s biggest drive system supplier with annual sales of $14bn according to the paper.

Jim Kamsickas, Chief Exec of Dana was clear that the combination of the two firm’s strengths in road vehicle engineering was undisputable. “It would be impossible to poke a hole in this industrially” he said.

The new bid is in addition to the hostile offer to shareholders from Melrose Industries, previously reported on. The board of GKN has rejected the bid, but shareholders are currently considering it.

However, the Melrose bit is neither popular with the management, nor some key clients. Tom Williams, CEO of Airbus has been quoted as saying that it would be ‘impossible’ to work with the engineering company under a short-term business model.

“The industry does not lend itself to shorter term financial investment which naturally reduces R&D, budgets and limits vital innovation,” he told the Reuters news agency.

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COMPANY DIRECTORS UNDER THREAT

COMPANY DIRECTORS UNDER THREAT

Creditors must be taken care of as well as the business itself

Running a company and holding a directorship involves a number of duties and obligations. The law is very prescriptive about this, and for good reason. In exchange for limited liability and general immunity for company debts, directors must care for the success of the business and also, should insolvency loom, protect the position of creditors.

The authorities take a dim view of those that breach the law. Take the November 2017 case of Kieran Jon Fox, the sole director of Doncaster Auto Parts Limited. He was disqualified from being a company director for three years and six months for trading “to the detriment of HM Revenue and Customs” by failing to pay £94,999 in respect of PAYE, National Insurance and VAT – monies owed at the time of liquidation. HMRC’s analysis of Doncaster’s bank account showed that at least £505,877 was spent from the account between 7 June 2015 and 9 June 2016. Over the same period at least £95,687 was paid to him in respect of loans, wages and dividends and at least £373,537 was paid to other parties. Total liabilities to creditors at liquidation were £358,237.

DIRECTOR’S DUTIES
According to Peter Windatt, an accountant and licensed insolvency practitioner with BRI Business Recovery and
Insolvency, companies must have at least one director who is legally responsible for running the company and making sure its accounts and reports are properly prepared.

Directors must be at least 16 and not disqualified; while most have a director’s title, the law recognises what is termed a shadow director. “An individual in this situation,” says Windatt, “is without title but nevertheless acts as if they are a director. Consequently, the law assigns them the duties and obligations of a formally titled director. Avoiding the term ‘director’ doesn’t remove the duties and liabilities from an individual.”

There are a number of general statutory duties placed on directors by the law which Windatt outlines.

“Firstly,” he says, “directors must act within their powers – that is, comply with the company’s constitution and exercise powers only for the reasons they were given.” Windatt explains that directors must critically act in a way they consider is most likely to promote the success of the company for the benefit of its members: “To do this they must have regard to all relevant matters, which the law specifically says involves ‘considering the likely consequences of any decision in the long term; the interests of the company’s employees; the need to foster the company’s business relationships with suppliers, customers and others, as well as the impact of the company’s operations on the community and the environment; and the desirability of the company maintaining a reputation for high standard business conduct; and the need to act fairly as between members of the company.’”

But there are other obligations to note: Directors must exercise independent judgment, that is, not be swayed by others, and must also exercise reasonable care, skill and diligence. This is key for Windatt – he says directors must be diligent, careful and well informed about the company’s affairs: “If a director has particular knowledge, skill or experience relevant to his function (for instance, they are a qualified accountant and act as a finance director), they will be judged accordingly.”

Another duty to note is the need to avoid conflicts between director’s interests and those of the company. This means not accepting benefits from third parties unless the company authorises acceptance, while declaring any interest in a proposed transaction or arrangement before it is entered into.

A final duty is close to Windatt’s own professional interests. Directors should consider or act in the interests of creditors (particularly if insolvency is a possibility) while maintaining confidentiality of the company’s affairs.

WHEN THINGS GO WRONG – DISQUALIFICATION

Of course, many businesses are well run and outlive their founders. However, when a business fails “the Insolvency Service will,” says Windatt, “examine the failure and if the director and his actions have been found wanting, can seek the disqualification of the director(s).”

He offers a note of advice to directors: “To protect their position and to comply with the law, directors should ensure their companies maintain and preserve proper accounting records and should submit them to the relevant authorities upon insolvency.” He frequently sees directors investigated by the Insolvency Service with a view to taking action against them, and says: “Any director that’s been disqualified will no longer be able to act as a director of a company; take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership; or receive company’s property. For most, this is likely to have a significant impact on their future earnings, especially as they may be disqualified for up to 15 years.”

PENALTIES FOR BREACHING DISQUALIFICATION ORDERS
There will always be some who consider that they can ignore a disqualification order, but they risk severe punishment. In these circumstances, they face imprisonment for up to two years and/or a fine on conviction following indictment; or imprisonment for up to six months and/or a fine on summary conviction. And the threat isn’t idle – there have been convictions.

Interestingly, but not unsurprisingly, Windatt’s seen some directors who are disqualified, either under the CDDA or by virtue of being made bankrupt, have their spouse/partner or other close friend/relative “front” a business while they carry on running it from “behind the scenes”: “This frequent scenario unravels when the business fails. At this point the stooge quickly reveals what they were and who the real controller was.”

To conclude, companies can and do fail for any one of a number of reasons, most of which are unfortunate but not deliberate. But where a director has not acted in good faith or in accordance with their duties, they can expect their activities punished and their ability to earn a living curtailed.

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FILLING GAPS IN THE MARKET

FILLING GAPS IN THE MARKET

Sean (L) and son Daniel (R)

Sean Brown shows CAT around Brown & Geeson in Wickford, Essex

Today we are Essex-bound visiting Brown & Geeson – a parts supplier and manufacturer that’s had a strong presence in the motorsport sector since its inception over 50 years ago.

BACKSTORY
In fact, the company first started out as an accessory shop in Chadwell Heath, set up by father and son duo Ray Brown and Arthur Geeson, which saw the integration of B-G aftermarket accessories in the form of fuel pumps, seat covers and wheel trims among various other components. However, the turning point in business came when Ray discovered the importance of self-branding, as his son Sean explained: “At the time, my father realised that by buying something in, putting his name on it and in his own packaging, he could sell his products worldwide and that’s how the business started to grow”.

Following expansion plans, the business partners relocated to larger sites in Plaistow East London and Dagenham, Essex respectively, where bespoke production facilities were introduced for serving VMs, importers and parts manufacturers across the country and abroad. This eventually led to another desirable location in Wickford in the mid 90’s, however, there were plenty of major changes ahead: “The UK manufacturing industry back then was quite tough, so myself and my father Ray made a decision to sell all contracts, machinery, shutdown the company and start what was ‘Brown & Geeson Distribution’.” said Sean. “The decision was taken to come out of manufacturing and concentrate on buying and selling from where Brown & Geeson originally started” adding that the firm eventually reclaimed its original name and returned to manufacturing, that’s now outsourced overseas.

BRANDING
As it stands, Sean and son Daniel head-up the operation of whom have extensive experience in motosport both on and off track. They greeted and took us through to an office space displaying styling products such as the infamous Momo steering wheel and numerous accessories behind shiny glass cabinets, along with mannequins dressed head to toe in Team GB race wear.

Display bits and pieces aside, Sean was keen to get down to business and discuss the B-G Racing brand that is now in its sixth year. Speaking of how it came about, he said: “What we needed to do with Brown & Geeson was go back to the old days where we sold boxes with BG logos on it. I believe there are products not only for pit equipment but also for setup equipment.” He continued: “On travels around the world, I have visited paddocks in Europe and noticed gaps in the market for premium products. I thought I could create something similar and bring it to the masses, not only to ‘educate’ but give the top teams a quality product for an affordable price.” He adds that the BG platform has been well received so far as the organisation’s distribution base now stretches globally.

Barcoding system has proved effective

Daniel agrees and expands on his father’s sentiment: “The B-G Racing brand is growing steadily everyday. We target distributors in different countries so instead of selling directly to the public, we target trade and retail shops in France, Germany and many more countries. We try and offer them a whole catalogue solution so they can source all their necessary parts from one place to simplify the purchasing process”.

Sean notes that the team have recently released their Seventh Edition catalogue packed with vehicle, setup and pit equipment for motorsport and aftermarket companies. Some of the popular sells he notes include: lift jacks, work mats and hub stands, plus camber/ caster gauges and levelling trays for technicians whether they’re working in a garage or pit lane. In addition, the brand is a supplier of car components from Australian firm Aeroflow Performance and Mittler Bros Machine & Tool.

After a business insight, Daniel and Sean provided us with a tour of the facility. During our tour, the shop floor seemed well organised with Momo and B-G Racing wares stacked along the aisles in an orderly fashion as they await distribution. The top floor comprised of more styling accessories and an in-house studio where new products are photographed before being uploaded to the firm’s website. To speed up productivity, Daniel told CAT that a new barcoding system has recently been implemented to get the product logged, onto the shelves and out the door to reduce stock discrepancies with customer orders.
Of course, with any queries that may arise, the sales and admin department are on-hand and who were very busy on our arrival dealing with customer calls and queries both nationally and internationally.

Although the duo have acquired some new OEM and workshop projects, everything is being kept top secret until completion later this year.

But for now, Daniel and Sean’s main objective is spreading the BG footprint while continuing to produce products to help bridge gaps in the market. We look forward to catching up with the team very soon.

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MAKING FAIR DISMISSALS

MAKING FAIR DISMISSALS

Deciding who makes the cut and telling those who haven’t is never easy. Here are a few tips to smooth the process

No employer likes to make employees redundant. Unfortunately, as the recent decision for 100 planned redundancies at the AA illustrates, and the announced Andrew Page branch closures might mean, sometimes difficult decisions do need to be made.

For the process to work properly, it is important that redundancy dismissals are handled sensitively and in accordance with the law. Any employer that fails to comply with its legal obligations during a redundancy situation could face complaints from employees and claims for compensation for unfair dismissal as a result.

WHAT IS A REDUNDANCY SITUATION?
In an employment law context, redundancy has a very specific meaning. To summarise, the statutory definition of redundancy identifies three sets of circumstances that amount to redundancy situations – a business closure; workplace closure; or reduced requirements of the business for employees to do work of a particular kind.

There is no mandatory procedure laid down by legislation in England and Wales for fairly dismissing an employee for redundancy reasons. Instead, employers must follow a fair procedure involving individual consultation. Dismissal decisions must be fair and reasonable. Case law has determined various principles of fairness that an employer should follow in order to reduce the risk of employees pursuing claims for unfair dismissal.

Generally, these principles require an employer to give employees early warning of the risk of dismissal; consult with employees (and the union if required); identify an appropriate “at risk” pool for redundancy; draw up and apply fair selection criteria; and give consideration to alternative employment.

CONSULTATIONS

First, an employer looking to make a number of employees redundant must check whether the obligation to engage in collective consultation exists. Where there is a proposal to make 20 or more employees at one site redundant within a 90-day period, the employer must engage in collective consultation with a trade union. If no trade union is recognised for that particular employer, then an employee representative will need to be elected, with whom the employer will need to consult. The employer will also need to notify the secretary of state of the number of planned redundancies.

Employers should seek specific advice in circumstances where multiple redundancies are planned as there are a number of obligations.

Even where a collective redundancy situation does not arise, consulting with the employee(s) at risk of redundancy is absolutely vital and will be central to the fairness (or otherwise) of the decision to dismiss. Consultation should be genuine and take place at a time when the employer can properly consider the employees views and suggestions – that is, before the final decision is made.

THE “AT RISK” POOL
Before selecting an employee or employees for redundancy, an employer must consider what the appropriate pool of employees for redundancy selection should be. Otherwise the dismissal is likely to be unfair.

There are no fixed rules about how the pool should be defined and, unless there is a collectively agreed or customary selection pool, an employer has a wide measure of flexibility here.

The question of how the pool should be defined is primarily a matter for the employer to determine and, provided an employer genuinely applies its mind to the choice of a pool, it will be difficult for an employee (or a tribunal) to challenge the choice.

Factors that are likely to be relevant to identifying a pool are the type of work is ceasing or diminishing; the extent to which employees are doing similar work (possibly even those at other locations); and the extent to which employees’ jobs are interchangeable within the workforce.

SELECTION CRITERIA AND SCORING
Once an employer has identified the employees in the at risk pool, it will need to apply selection criteria to determine those at risk of redundancy. To do this, employers will need to develop appropriate selection criteria. The criteria, which of course must be objective and fair, might want to look at things like disciplinary record, length of service and performance. Criteria which relate to protected characteristics such as age, disability, religion or sex must be ignored.

The employer will need to mark each of the potentially redundant employees according to the finalised selection criteria.

Different weighting can be given to different criteria. It can also be useful to ask different managers to independently score employees in the at risk pool in order to ensure objectivity.

ALTERNATIVES TO REDUNDANCY
In many cases, consultation between employer and an employee who is at risk of redundancy will be focused on finding an alternative to dismissal on redundancy grounds. Employers should be prepared to discuss the steps that it has taken, or has considered taking, to reduce the risk of (or number of) redundancies. This might include things like a recruitment freeze and terminating the engagements of agency workers before embarking on the redundancy process.

Equally, employers should provide details of any vacancies to employees who are at risk of redundancy in order to minimise the number of dismissals that might need to be made.

STATUTORY PAY
Lastly, when making redundancies, employers should bear in mind that employees are entitled to an SRP payment where they are dismissed by reason of redundancy and have at least two years continuous employment at the date of the dismissal. The calculation for this can found at: gov.uk/calculate-your-redundancy-pay

Managing a redundancy process to ensure fairness can be difficult. It is crucial that an employer carefully plans the process at its beginning and critically before consultation with employees begins. Getting it wrong can have a big impact – in addition to potentially facing unfair dismissal claims, a poorly planned redundancy process may end up alienating the workforce at a time when the employer requires everyone to be particularly focused on the job at hand and morale is low.

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ASA FINDS SERVICING STOP ADVERT ‘MISLEADING’

ASA FINDS SERVICING STOP ADVERT ‘MISLEADING’

Two complaints against aggregator

The ASA received two complaints over claims made on repair aggregator Servicing Stop’s website.

One complainant, who believed that Servicing Stop continuously charged the ‘sale’ price for their services and that the savings were therefore not genuine, challenged whether the savings claims quoted within the ads were misleading and could be substantiated, while the other complaint challenged if the prices were misleading because their vehicle required a specific oil with VM approval that incurred an extra charge.

On the first complaint, the ASA looked at a series of complex savings offered on the website that were promoted as being ‘up to 60 percent off’. In response, Servicing Stop stated that at certain points throughout the year, they ran sales during quiet periods. It provided the ASA with dated and undated invoices showing the price history of the Kia Sedona vehicle servicing. It said that the period of time for which the new lower discounted price was available was not longer than the period of time that the item was listed for at the previous higher price.

It provided a spreadsheet of the sale dates for the servicing of the Kia Sedona and Honda CRV vehicle models over a six-month period from April 2017 to October 2017. There were variations between the ‘previous’ prices stated over this period. Its data showed that the Honda CRV services were on sale for a total of 37 days over a six-month period and the Kia Sedona had a sale period of 41 days over the same six-month period. It explained that there were fluctuations between the previous prices due to the many variants in price between the number of makes multiplied by the number of postcodes.

The ASA disagreed, noting that the ‘previous’ price varied when the discounted price remained the same. It told Servicing Stop to ‘ensure savings claims are genuine’. However, on the price of VM specific oil, the ASA noted that the aggregator put a disclaimer in saying that the price of such oil can vary. As a result, it was not in breach on this complaint.

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IS BANNING DIESEL BAD FOR THE ENVIRONMENT?

IS BANNING DIESEL BAD FOR THE ENVIRONMENT?

Scrappage Scheme

Evidence suggests that a rise in petrol registrations is contributing to global warming

Diesel-powered vehicles have been in the news a lot over their environmental performance, or lack thereof. Conversely, industry experts have warned that a clampdown on diesel vehicles could result in the UK actually missing European environmental targets.

Mike Hawes, Chief Executive at SMMT warned that demonising diesel conversley will have an adverse effect on the environment. “Customers are not moving straight from diesel to electric. They’re moving to petrol or staying put in older cars” he said when speaking at the Society’s annual dinner in December. “So we’re seeing a falling market, declining revenues, rising costs, rising CO2. And, yes, this will have an effect on climate change goals. This is not a policy without consequences”.

Data firm CAP HPI has authored a report which concludes that the EU’s 2021 environmental targets could be missed if the percentage of diesel vehicles continues to decline on UK roads.

The report points out that some of the environmental criticism of diesel vehicles is misguided.

All the countries in the report achieved the 2015 CO2 emission target for cars registered in that year. While France and Italy were comfortably below the 130g/km line, the UK is closer, and Germany only cleared the hurdle by 1.4g/km.

UNACHIEVABLE
Matt Freeman, Managing Consultant at CAP HPI and the report’s author, commented that without continuing sales of diesel engine cars, this target reduction is unachievable: “Hitting the 2021 environmental targets for CO2 reduction would be a significant challenge without the likely decline in diesel. Therefore it is imperative that diesels continue to command a substantial share of the new car marketplace.

“If consumers, with no option of transitioning to hybrid or EVs, switch to petrol the environmental impact is clear – their CO2 emissions would likely rise between three percent and 23 percent according to model.”

The report argues consumer education is key as there is an apparent risk that consumers are being led to believe that ‘all diesel is bad’ and that any suggestion that there is a good diesel option is due to the automotive industry seeking to resist change and preserve the status quo. This level of miscommunication needs to be countered if diesel is to have a short- to medium-term future.

SKEWED
However, the media coverage on diesel is, to say the least, skewed against the fuel no matter what the improvements and consumers are confused. At the aforementioned SMMT dinner, Greenpeace crashed the stage to hand VW boss Paul Willis a faux ‘award’ for ‘toxic air’ and coverage in the mainstream press has been hardly less hostile. This has resulted in drop in demand (by about a fifth) in new registrations for diesel powered cars and new registrations for light vehicles as a whole are down 5.7 percent compared with last year. This has lead to several analysts making doom-laden predictions about the future of new car retail through franchises coming to an end entirely. These might be a little wide of the mark, but it does seem that for a private motorist wanting to upgrade to the latest technology, the idea of a conventional powertrain must seem a bit old fashioned.

Most people reading this might wonder why they should care, after all, surely this is a hole that the VMs have dug for themselves? It doesn’t affect the aftermarket… Unfortunately, it does. Tens, if not hundreds of thousands of vehicles won’t go through trade auctions and back into the aftermarket as the VMs are holding their own versions of scrappage schemes. As far as I know, no-one has made a serious attempt to retrofit otherwise efficient Euro- 3 onwards common rail diesel engines with devices to clean up their carcinogenic soot, meaning that they are replaced with petrol vehicles that are only marginally less toxic, but will emit greater quantities of greenhouse gas. Meanwhile, the face of the retail motor industry as a whole is besmirched by the failure of the VMs to get a grip on this situation which is a real pity for all involved.

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A NEW CHAPTER FOR ANDREW PAGE

A NEW CHAPTER FOR ANDREW PAGE

Steven Frost and Shay Allen

Of all the places that I thought might be my first visit of the year, a new branch of Andrew Page didn’t seem likely just a few months ago.

But things change, and so today, I’m standing at a shiny shop counter in a new branch. There are displays of tools and accessories with a number of brands and a small screen with a noisy infomercial for something called Gorilla Glue on a loop – something which I suspect will get old very quickly for the staff.

The stockroom, loaded with parts across two levels, is just as clean. Incredibly, building the mezzanine plus racking the whole branch and filling it with stock was achieved in just a week, according to Regional Manager Steven Frost, who was there to meet me along with Southampton Manager Shay Allen and Interim Marketing Manager Richard Swan.

Admittedly, this is not an entirely new branch. There was already a satellite of the Southampton branch in Eastleigh that needed to move or be closed as the lease was up and the landlord wished to redevelop the building. At the same time, parent company LKQ had a recently vacated building that had previously been a JCA Coatings counter, so it seemed logical for one business to move into the empty building.

RATTLING PHONES
However, don’t think that this is nothing more than a re-site. The sales team that manages customers around Eastleigh and Winchester are to move from Southampton into a bright new telesales office upstairs at the Eastleigh branch, and the team have plans to increase the headcount in order to win some new accounts.

“You get closer to your customers when you are in a standalone branch” Steven Frost emphasised, “But in a satellite branch, you become a bit disengaged as your customers don’t know that you’re up the road. So part of the investment is to get more people in”. This will likely include an extra van or two (there are currently six) and possibly extra people to handle the increased pareto and anticipated rise in orders.

The problems faced by the management of Andrew Page have been covered ad infinitum in CAT, but from a customer point of view the main issue has been inconsistent supply and ever-changing brands on the shelf. “There’s nothing worse than having to ring a customer back and tell them that you can’t get something” said Frost, adding that as an ex-ECP man, he breathed a ‘sigh of relief ’ when he heard that LKQ were behind the takeover, because he knew that range and availability would no longer be an issue.

So, is this branch a new start for the hundred year-old factor? “That’s certainly what we’ve been told” said Frost. “There are more moves and openings planned as [LKQ] want to heavily invest in this brand and move it forward. It hasn’t moved as quickly as we wanted, because of the CMA thing, but straight away this is what we want to do”.

NEW BUSINESS
Branch Manager Shay Allen believes that filling gaps in existing accounts and winning new business is entirely possible, due to the good and personal relationships the team have with individual customers. This trait goes back to the days of Camberley Auto Factors which several team members worked for, prior to being bought and rebranded by Page.

“It absolutely comes down to the relationship between the garage and the factor. If there is one thing that sets us apart right now it is people, and the knowledge and level of skill that they have” said Allen.

This is emphasised in the firm’s attitude to outgoing sales calls. Rather than badger people on the phone with an offer of screenwash or whatever, the sales team will prefer to visit customers to make sure they are happy with everything the factor is doing, and looking to see if there are any gaps that can be filled.

That isn’t to say that there aren’t challenges to this expansion. Both MPD, GSF and GAU are active on the patch that the branch wants to take more of as well as the ‘friendly’ competition from the local ECP. Nonetheless, the shiny new branch sends out a clear message to the aftermarket: Andrew Page is back and open for business.

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CHARGING UP BUSINESS MARGINS

CHARGING UP BUSINESS MARGINS

There are plenty of battery charger brands out there, but how are firms standing out from the competition?

Noco Genius series

Consolidation is the buzzword of our industry at the moment, but it isn’t just reserved for the factor groups, suppliers are part of this trend too. “There has been a lot of consolidation of battery brands with only a few major players left in the market.” said Gary Vincent, Sales Manager of American battery charger firm Noco.

While battery brands are shrinking, he says the opposite is true of chargers, “In terms of battery chargers, there is an increasing number of battery charger brands entering the market from the far-east with little actual battery charging experience and just looking to make quick money on places like Amazon,” he said, adding that this has had a knock-on effect on product quality and safety in the marketplace.

TRAINING
To maintain quality standards and be one of the ‘go-to’ brands for battery chargers, Noco has heavily invested in a number of marketing initiatives, technologies and training programmes to maintain customer retention while providing new clients with the technical know-how to up-sell its chargers in store. “Technical training forms part of the Noco on-boarding process for new customers so they can confidently advise and sell across the range,” said Vincent. “We see a continued trend towards lithium-ion batteries in all markets, and all of our chargers contain a specialised lithium charging mode. However, most competitors focus on their attention on charging fast, whereas we focus on return of capacity whilst restoring the specific gravity to optimal level, which can sometimes lead to slightly longer recharge times.”

The design and packaging can also bring many plusses to retailers stocking them as Vincent highlights: “Our chargers and packaging is extremely compact, which typically saves retailers upwards of four times in retailer footprint. These not only allow retailers room to add additional SKU’s, but also saves on logistical costs.”

NEW PRODUCTS
Taking a slightly different stance on battery charging is Swedish battery charger firm CTEK. As previously mentioned in CAT, the firm recently introduced its ‘CT5 Time To Go’ device, which informs users when their battery is fully charged, through a series of LED lights that monitor the state of charge of the battery. The tool is used in conjunction with the firm’s new ‘Battery Sense’ dongle, which tracks the vehicle’s battery health. The concept behind this was to encourage more motorists to check their battery regularly in order to prevent further breakdowns, particularly during the colder months when this component is at its most vulnerable. Sten Hammargren, Consumer Business Unit at CTEK, elaborated: “The Battery Sense tool is easy to install and data is delivered through a free to download iPhone or Android App. Battery Sense means no worrying about charge levels or when to charge; providing valuable information about the vehicle’s battery in a simple, user-friendly way.”

In addition, the maker is conducting ongoing training sessions for factors and distributors via its Skillsbase programme, allowing them to gain a thorough understanding of the firm’s wares. This is further supported with marketing materials such as product sheets, brochures and promotional films for additional advice and guidance. “Understanding how our products can be used to meet the needs and demands of the end user is a strong factor in choosing the right products to generate sales opportunities”, said Hammargren, “Our Skillsbase programme is helping our customers to gain comprehensive CTEK knowledge and develop essential skills and understanding to maximise profit margins.”

In a similar vein, Banner Batteries is raising awareness and the importance of battery chargers and maintenance to its retail network in the form of ‘visually appealing’ display units and marketing materials including a pocket guide leaflet for its Accucharger range. Lee Quinney, Country Manager at Banner, elaborated: “Developed to ensure that modern lead-acid batteries attain their anticipated long service life through regular and necessary equalisation charges, each Accucharger is more than capable of powering up any starter battery easily, fully automatically and safely. In addition to their functionality and suitability for all 6/12V lead acid batteries, they are appealing in terms of their design aesthetics and have already been widely adopted by Banner’s distributors and their customers.”, he concluded.

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THE RIGHT PART GOES BEHIND WHAT FITS

THE RIGHT PART GOES BEHIND WHAT FITS

The rules around replacement parts are complex, but worth getting your head around, writes BM Catalysts Commercial Director Mark Blinston.

While there might be more hot air than hard facts about emissions across the mainstream press about vehicle emissions, there can be no doubt that reducing toxic gas and restoring trust in the motor industry is the greatest problem faced by the trade at the moment.

Everything is geared towards reducing emissions and much of the emphasis seems to be pointed towards vehicles and how we can reduce the impact that they are having on air quality. You may be wondering what we can do about it in the aftermarket; but one thing we can do is making sure the right part is fitted to the right vehicle based on the emissions standard of the vehicle in question – the Euro level.

Vehicles and replacement emission control devices must meet specific standards for exhaust emissions before they can be offered for sale in the European Union. Emissions limits are commonly referred to as Euro standards or levels.

Emissions are measured using a standardised test cycle called the New European Driving Cycle (NEDC). The NEDC was last updated in 1997 and is gradually
being replaced by the World Light Test Procedure (WLTP), which is designed to better replicate real driving conditions. WLTP is now being applied to new vehicles (types) but does not yet apply to replacement parts.

In order to test the durability of each part emission test results are most frequently multiplied by a deterioration factor; with the adjusted result then compared to the legislative limit. Deterioration factors are designed to simulate the likely change in performance of the part after it has aged with use over time. These deterioration factors have become more stringent over time, and so when coupled with the gradual lowering of limits it becomes considerably harder to achieve a pass when testing newer parts and newer vehicles. The largest increase in deterioration factors occurred between Euro four and Euro five.

In order to meet higher emission standards, it is frequently found that the OEM part is made to a higher specification than the lower EU level part it has superseded. Legislation requires a comparison of performance between a replacement part and its OE equivalent and so it naturally follows that tougher standards + higher deterioration factors + higher performing OE parts = a real need for a higher specification replacement part.

RIGHT LEVEL

The Euro level of each vehicle prescribed at the point at which that vehicle is Type Approved. A replacement part cannot be approved to a lower Euro level than that of the original vehicle; so if the vehicle is Euro five then the replacement must be approved to Euro five levels/limits. Testing and approving this part to Euro four would mean that it cannot be proven that it meets the relevant emissions standards and therefore cannot legally be fitted to any Euro five vehicle.

There are many catalytic converter and diesel particulate filter (DPF) references that appear to be physically identical but are, in fact, designed and approved for vehicles that carry different Euro levels. This is made possible as the internal specification of the part is largely the key to the emissions performance of the vehicle. For example, the Euro five version of the close-coupled cat for the Citroen C1 requires a specification that is more than 3 times that of the Euro four version of the part. A similar story is true of the Euro four/five Fiat five00 and Ford KA. Quite apart from it being illegal to fit the Euro four version to a Euro five vehicle, it will cause poor emissions performance with a much higher chance of related vehicle issues and potential part warranty returns. It can be easy to source the cheapest product which isn’t necessarily approved to the correct Euro level – the consequence of which is then a part that will actually not perform to the standards required.

CATALOGUE
The correct cataloguing of aftermarket parts is complex and challenging and many consumers will not be aware of the Euro level of their vehicle. It is therefore down to the garage and parts distributor to ensure that the part that is being sourced is approved for sale to the correct Euro level of the vehicle in question. This is something that has recently been identified as a “problem” in the aftermarket whereby parts can be physically the same, catalogued with the same start and close dates yet be very different both in terms of the internals and what they are legally approved for sale to fit.

In an effort to reduce the number of occasions that the incorrect part is being supplied and fitted to the vehicle, MAM (Autocat) will shortly be introducing the Euro level as a search criteria when identifying the correct part for a particular vehicle. Manufacturers of catalysts and DPFs will be asked to submit the Euro level for which their part has been homologated to enable an accurate match upon lookup. This is a positive step that the aftermarket is taking to reduce vehicle emissions.

Posted in CAT Know-How, Exhausts, Factor & Supplier News, Garage News, News, Retailer NewsComments (0)

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