- Vertu pushes HMRC on ECOS
- CMA decides against BCA Aston Barclay takeover
- Dieselgate High Court case starts this week
- Ford’s hires new European development boss
- Lamborghini opens flagship Mayfair store
- WEEK AHEAD: UK claimant count
- Wage growth slows
- Duracell enters UK EV charging market
- Ineos ditches agency in Oz
- Chinese retailers in ‘fight for survival’
- OPINION: Redress today, repercussions tomorrow?
Vertu pushes HMRC on ECOS
Vertu has met with HMRC officials to show how changing employee car ownership schemes to treat them as regular company cars will lead to a drop in tax revenue.
Speaking to Auto Sunday after Vertu’s latest half-year financials, CEO Robert Forrester said the change, which has already been delayed from March to October, would lower VED, VAT and Corporation Tax income for the government.
“We had a meeting at the treasury last week to discuss the subject. We presented them with our modelling headlines which are; we believe if you take VED and VAT into account, the new policy will lead to a significant reduction in government revenues that is incontrovertible.
“It would appear that the OBR [Office for Budget Responsibility] don’t take into account VAT when they’re doing their modelling, which is, let’s be honest, critical. And also, we model that it could lead to a £2.5m annualised increase in our operating cost base.”
He added that while he was “never optimistic getting governments to change their minds,” the move would “lead to even less corporation tax being paid or pressure on businesses in the sector.
“I think the wider problem with the policy is the high spec petrol diesel products that these schemes tend to utilise. We think the scheme equates to about 5% of the UK car market which are highly profitable product for the manufacturers. And our view is a significant proportion of those cars will not get built,” he said.
“It’s messing about with one of the central tenants of how the UK automotive sector actually operates.”
CMA decides against BCA Aston Barclay takeover
The Competition and Markets Authority has found that the acquisition of Aston Barclay by BCA owner Constellation “gives rise to a realistic prospect of a substantial lessening of competition” in relation to B2B used vehicle actions in Great Britain.
An investigation into the takeover was announced in May, and both businesses have continued to operate as separate entities since then.
In its detailed ruling, the CMA gave the parties until 6 October to “remedy the competition concerns identified”. If these are deemed insufficient, the CMA “will refer the Merger for an in-depth phase 2 investigation”.
Dieselgate High Court case starts this week
One of the largest collective actions in English legal history is set to go to trial in the High Court this week, reports the FT. Hundreds of thousands of motorists are suing OEMs over claims they installed ‘defeat devices’ to cheat emissions tests.
They are hoping for “thousands of pounds each in compensation”.
The ‘dieselgate’ action has seen a total of 1.6 million vehicle owners bring claims against 13 OEMs. Only five companies – believed to be Mercedes-Benz, Ford, Peugeot Citroen, Renault and Nissan – are going to trial this week; this action covers 846,500 claimants.
“The lawsuit epitomises a new breed of mass claims in the UK, financed in part by hedge funds and other specialist litigation funders,” said the FT.“
Law firms and funders have invested hugely in this case,” said David Greene from law firm Edwin Coe. If it were to be lost, I think that would be quite a blow.”
Ford’s hires new European development boss
Anticipation of a fresh product drive at Ford of Europe is growing after the OEM hired its first president for the region since Stuart Rowley departed in March 2022. Jim Baumbick, a development engineer, will report to Ford global vice chair John Lawler.
In a statement, Ford said Baumbick’s role will include “developing products relevant for European customers and driving faster, more efficient execution”. He starts on 1 November.
Automotive News reports Ford’s German dealers were told in July that an expanded passenger car lineup is planned with new models starting in 2027.
Lamborghini opens flagship Mayfair store
Lamborghini has opened a new UK flagship showroom in Berkley Square. Lamborghini Mayfair is operated by HR Owen and joins 11 other Lamborghini showrooms across the UK. A one-of-29 Lamborghini Fenomeno was on display for the opening; three cars from the production run were sold in London.
WEEK AHEAD
Tuesday, UK claimant count
Friday, GDP
DATA INSIGHT
Wage growth slows
50.2: Wage growth index for September, down from 50.6 the previous month. The figure is a four-year low. Part-time pay growth also dropped to an eight-month low.
Duracell enters UK EV charging market
100: Number of Duracell-branded EV charging sites targeted by 2030. Six will open this year, in partnership with The EV Network.
GLOBAL AUTO
Ineos ditches agency in Oz
Ineos has ditched agency sales in Australia, reports The Auto Exec. The agency model is “neither fish nor flesh,” said regional director Justin Hocevar, and by early 2026, Ineos will complete its transition to traditional franchise retailers in Australia.
Chinese retailers in ‘fight for survival’
Retailers in China are facing an “existential threat” due to the long-running price war and rapid increase in production. “Currently, new car sales for dealers are experiencing extensive losses”, Bloomberg report secretary general of the China Passenger Car Association, Cui Dongshu, wrote last week in a WeChat post. “Operating at cashflow negative and risks to a crash in cashflow are widespread. It’s hard to escape this fight for survival.”
There are calls for the government to step in with financial and funding support, and for lenders to be more flexible with retailers.
OPINION
Opinion: Redress today, repercussions tomorrow?
On the face of it, the FCA’s proposed approach to discretionary commission redress looks like a rare moment of relief for retailers and indeed the wider automotive landscape. Vertu Motors’ latest results this week suggested the group won’t face material exposure; a view that will echo across the sector. But should we look further ahead?
Finance companies are now squarely in the firing line for the billions that are likely to be paid out. And while the regulator may have drawn a line under the historical practice, the economic consequences will continue to ripple through the market.
Will lenders quietly adjust consumer rates to rebuild margins? Will retailer finance remuneration now shrink under cost pressure? Or could we see finance houses test the boundaries of contractual responsibility, seeking legal recourse against dealers for mis-selling under historical agreements? None of these routes are impossible, and some feel almost inevitable. Could we even see finance companies exit the sector, reducing competition?
The short-term comfort in dealer boardrooms shouldn’t obscure the medium-term risk. Finance partners under pressure may become more selective, more restrictive and less generous. New commercial models (flatter, lower, less flexible) could emerge as the true legacy of the FCA’s intervention.
So while the industry waits for the final decision, this is a moment for retailers to think ahead: reassess finance strategies, revisit income assumptions and strengthen compliance storytelling. Because when the £11bn bill for the past comes due, no one party is going to accept the total burden.
Tristan Young
Editorial Director
Get in touch: tristan@autosunday.co.uk
ISSN 2977-6597