- CMA FREEZES CONSTELLATION-ASTON BARCLAY MERGER
- BAD NEWS EXPECTED ON INFLATION THIS WEEK
- KIA TO EXPAND OVAL PARTNERSHIP WITH RETAIL SPACE
- NEW NON-EXECS FOR AUTO TRADER
- WEEK AHEAD: CPI and RPI
- FORD RETAILER FORAY PROFIT DIPS £300k IN 2024
- PROFESSIONAL SPLIT IN HYBRID WORKING
- ‘DIRE FUTURE’ FOR FORD IN EUROPE
- US RETAILERS WANT MORE TIME ON CALIFORNIA ZEV MANDATE
- OPINION: MariaGrazia Davino – Look beyond politicians weaponising uncertainty
CMA freezes Constellation-Aston Barclay merger
BCA owner Constellation has been ordered by the Competition and Markets Authority to put its integration of Aston Barclay on hold. The CMA has issued the notice while it considers if a “substantial lessening of competition” will result.
The move follows Constellation’s purchase of Aston Barclay a month ago. Aston Barclay was the UK’s third largest auction firm, while BCA is the UK’s largest vehicle remarketing business. At the time, a spokesman for BCA said: “Constellation Automotive Group are pleased to announce the acquisition of Aston Barclay including its subsidiary The Car Buying Group. Aston Barclay has recently been experiencing difficult market conditions and, as a result, closed its Leeds remarketing centre in January ‘25. The acquisition aims to secure the longer-term viability of the Aston Barclay network of centres and avoid further closures by bringing further investment into the business, along with incremental volume from the group’s growing WeBuyAnyCar business.”
The CMA’s order, which came into force on 13 May, reveals it suspects Constellation and Aston Barclay have ceased to be distinct entities following their recent merger.
Using powers under section 72 of the Enterprise Act 2002, the order requires both entities to freeze integration including management structures, transferring ownership or control and sharing customer or supplier lists. The two firms must also retain key staff and continue to service existing contracts by the original awarding party. Commercially sensitive information may only be shared between the two businesses where legally required and both operations must provide fortnightly updates to the CMA starting on 27 May.
The statutory maximum period for completing an investigation is 18 months, with a possible extension of up to six additional months in exceptional circumstances, according to the Enterprise Act.
Failure to comply with the IEO carries serious consequences. The CMA can seek injunctions, impose financial penalties, and even pursue criminal charges for providing false or misleading information.Auto Sunday has contacted Constellation for comment.
Bad news expected on inflation this week
Bank of England agent Rob Elder has warned the April inflation data due on Wednesday is likely to bring “bad news” with an increase to 3.5%, well above the Bank’s target of 2%. That’s up from 2.6% in March.
Speaking at the Radius Law Annual Conference, Elder said he knew high interest rates had been hurting the economy, but “it’s been necessary… and we’re nearly there. There will be bad news next week, but don’t worry – it will be temporary… the main message is that we do think inflation is under control.”
Wednesday’s ONS reading could be the highest in two and a half years, and will be driven upwards by a range of rising household bills. This includes Ofgem lifting the cap on energy bills to £1,849, a 6.4% in crease, at the beginning of April. The average annual household water bill also jumped by £123 to £603 – a 26% increase.
Auto Sunday was also represented at the Radius Law event, speaking on a panel discussing the changing automotive marketplace. Read a full report of the event in the June issue of Auto Market Insight.
Kia to expand Oval partnership with retail space
Kia is increasing its sponsorship of the Oval cricket ground in London with the addition of a novel showroom.
Currently in the planning permission stage, Kia is understood to be working with the Oval to redesign and rebuild the Alec Stewart gate so that it could feature two Kia vehicles on the roof and also a retail space inside.
Planning permission has yet to be granted by Lambeth Council, but if the changes are given the go-ahead the work is expected to be completed before the end of this year.
Meanwhile, Wessex Garages has been granted planning approval for a new Kia flagship retailer at Jupiter Park, Cribbs Causeway, Bristol. There will be a 10-car showroom, 12 servicing bay, EV charging facilities and “generous” customer parking. Construction begins soon with completion expected mid-2026.
New non-execs for Auto Trader
Two independent non-executive directors will join the Auto Trader board on 1 July – along with the audit, renumeration, corporate responsibility and nomination committees. Megan Quinn and Adam Jay will succeed Jeni Mundy and Sigga Sigurdardottir.
The appointments are part of the Auto Trader board’s long-term succession planning.
WEEK AHEAD
Wednesday, ONS April inflation
Wednesday, CPI and RPI
Friday, GFK consumer confidence
Friday, UK retail sales
DATA INSIGHT
Ford retailer Foray profit dips £300k in 2024
£1m: Ford retailer Foray Motor Group’s profit before tax in the year ended December 2024. Turnover fell from £174.3m to £159.5m, due to reduced passenger car volumes.
Professional split in hybrid working
52%: Proportion of all UK workers who never work from home. For highly-skilled workers, this falls to 29%. * Read Ennis & Co founder and CEO Lynda Ennis on Flexible working – business killer or corporate cure? in the latest Auto Market Insight
GLOBAL AUTO
‘Dire future’ for Ford in Europe
“The situation is bad and the prospects are even worse,” Ferdinand Dudenhoffer of Germany’s Centre Automotive Research said last week. “Ford is too small in the passenger car sector to be able to operate profitably in Europe… it makes little sense to continue operating in the current constellation.”
He spoke as Ford workers at its Cologne factory, which makes the new electric Explorer and Capri, voted to strike last week – the first since the plant opened 95 years ago.
US retailers want more time on California ZEV mandate
States that have adopted California’s rules on electric cars are being urged to slow down the phase-in, or even opt out, because consumer demand hasn’t grown as quickly as anticipated. California’s Advanced Clearn Cars II regulations, adopted by 11 other states and Washington DC, require 35% zero-emission sales in the 2026 model year, rising to 100% by 2035.
“We are walking slowly to the edge of the cliff, and those of us in this business can see that it is a steep drop,” said Matt Cota of the Vermon Vehicle and Automotive Distributors Association. “We can see clear as day that the vehicles aren’t going to be here in the numbers that the regulation requires.”
OPINION
MariaGrazia Davino: Look beyond politicians weaponising uncertainty
Global leaders are weaponising uncertainty and seemingly causing turmoil for the automotive retail sector, and indeed the entire business world. Buffeted by unprecedented global changes and technological disruptions the automotive industry stands at a crossroads. As someone who has navigated the complex terrain of automotive distribution and retail across multiple countries, I’ve witnessed firsthand the profound transformation reshaping our industry.
Today’s car buyer is no longer driven by pure emotional connection to brands or products. Instead, we’re seeing a more sophisticated customer approach – a delicate balance between brand passion and rational decision-making. Customers are increasingly digitally-savvy, conducting extensive online comparisons, analysing total cost of ownership, and considering environmental impacts.
The geopolitical landscape adds another layer of complexity. We’re experiencing a multi-polar world where economic and technological leadership shifts between regions – from America to China, from India to Europe. These global dynamics directly influence automotive strategies, from supply chains to market positioning.
The electric vehicle revolution epitomises this transformation. We’re not just changing technologies; we’re reimagining mobility. But technological uncertainty shouldn’t paralyse us. Instead, it should inspire adaptability and strategic thinking.
For automotive retailers, survival isn’t about predicting every future scenario – it’s about mastering fundamental business practices while remaining dynamically responsive to change. Success requires a multi-faceted approach:
- Customer-centric excellence: Continuously improve sales and after-sales experiences. Understand that today’s customers seek comprehensive, informed solutions.
- Operational efficiency: Manage inventory responsibly, maximise manufacturer targets, and maintain financial discipline. Every decision must be strategic and purposeful.
- Talent development: Invest in new generations of automotive professionals. Cultivate skills that bridge traditional automotive expertise with digital innovation and keep on knowing the products you sell in detail plus educate your employees to do so. Additionally, always cultivate your technical capabilities in the workshop, where a team mixed of senior and young talent grow together.
- Digital transformation: Embrace digitalisation across all touchpoints; marketing, sales, customer service. The most successful retailers will be those who seamlessly integrate technology into their operations.
- Strategic negotiation: Actively engage with stakeholders, understanding that relationships are your most valuable asset.
The most critical advice? Remain an independent, agile entrepreneur that excels at the basics. Don’t get trapped in media narratives or social media rhetoric. Stay informed, but focus on your core business. The beauty of automotive retail is its inherent opportunity for innovation and personal agency.
This isn’t about surviving disruption, it’s about thriving through it. By maintaining operational excellence, staying technologically adaptive, and keeping a clear strategic vision, automotive retailers can transform challenges into opportunities.
The future belongs to those who can balance fundamental business principles with an innovative, forward-looking mindset. In a world of constant change, your commitment to excellence will be your most reliable compass.
MariaGrazia Davino
BYD Europe Regional Managing Director
Get in touch: tristan@autosunday.co.uk
ISSN 2977-6597