- RENAULT NETWORK CUTS AIM TO BOOST PROFITABILITY
- HENDY PULLS CONTENT COMPETITION AFTER BACKLASH
- JLR RESTARTS SHIPMENTS TO US… BUT PORSCHE STOPS THEM
- SYTNER PARTNERS WITH BRITISH DRESSAGE
- NATIONAL GRID APPOINTS 11th FTSE 100 FEMALE CEO
- WEEK AHEAD: SMMT April new car registrations
- CITY WANTS MORE PENSION INVESTMENT IN UK
- TRUMP’S CAR PARTS TARIFFS GO LIVE
- NOW CALIFORNIA RETAILERS INVESTIGATING SONY AFEELA
- PINEWOOD SIGNS WITH VW JAPAN
- OPINION: Do customers want a software defined vehicle?
Renault network cuts aim to boost profitability
Renault has, this month, completed its network restructuring which has seen the manufacturer go from 152 locations two years ago, when termination notices were first issued, to 125 now.
At the time the cuts were announced, Renault said it had planned to end up at 115 locations.
Speaking to Auto Sunday, Adam Wood, Renault UK managing director, said the brand had been at 140 sites earlier this year and that the restructuring would help overall network profitability.
Wood, who re-joined Renault almost a year ago, said: “The important thing is it’s an absolute priority for us to make sure that Renault offers a competitive return on investment to our investors. That’s part of our plan to make sure that we’ve got the right network footprint as we have ambitions to grow. To make sure that our partners realise the benefit of our growth.”
While Wood declined to give a current network average return-on-sales figure for Renault, retailer sources have said the figure is lower than at the start of 2024 when official figures from the brand recorded 1.6%. The group is also moving to a new method for its retailer composite figures.
In 2023, when the cuts were first announced, the RoS figure was at 2.1%. However, average margins across all brands are understood to be running lower than both 2024 and 2023.
* Read the full interview with Adam Wood in the May issue of sister title Auto Market Insight
Hendy pulls content creator competition after backlash
Hendy has apologised after pulling a content creator competition that met with a social media backlash. Published on Instagram, the opportunity was aimed at aspiring content creators, said Hendy, looking to build their portfolio with cars they otherwise wouldn’t have access to.
“We regularly receive a high number of requests from creators and influencers who are looking to work with us under a barter collaboration. This competition was our way of acknowledging these requests and offer an opportunity to engage with emerging talent.”
The campaign, however, was met with anger from some commentators, who criticised Hendy for not paying creators for using content. A number of negative comments saw Hendy pull the campaign and delete the Instagram post.
The retailer added that it respects already-established creators and photographers that it works with on a regular basis. “This opportunity was for smaller creators, those that have a hobby, or content enthusiasts who are still growing their presence.
“In light of the feedback received, we have closed the competition and offer our sincere apologies to anyone that has been affected by it.”
JLR restarts shipments to US… but Porsche stops them
JLR restarted shipments to the US last Wednesday, after a near-month-long pause following president Trump’s 25% vehicle import taxes. The Sunday Times said restarting shipments “could be interpreted as JLR accepting that its US customers will have to pay more for its cars”.
JLR declined to comment but said it would give a further update in its full-year results in May.
JLR shipments take 21 days to reach America, so they’ll be hit with the 25% import tax if a deal isn’t in place by around 20 May. This would add $27k to the price of an entry-level Range Rover.
Porsche retailers, meanwhile, say they have not received shipments of new vehicles from US ports “for several weeks” as the brand grapples with the tariffs. “I think Porsche is waiting for the administration to arrive at a realistic tariff number,” one retailer told Automotive News.
Another retailer said deliveries could restart in May.
Sytner partners with British Dressage
Sytner BMW is to partner with British Dressage. It will be attending 10 events throughout the year, including the Quest Championships at Arena UK. British Dressage is the governing body for the Olympic sport of Dressage.
National Grid appoints 11th FTSE 100 female CEO
Former Shell executive Zoë Yujnovich is to succeed John Pettigrew in November and become the 11th female FTSE 100 CEO. She will also become chair, making her one of only two FTSE 100 companies to have a woman as chair and chief executive.
WEEK AHEAD
Tuesday, SMMT April new car registrations
Wednesday, Aston Martin AGM
Thursday, Bank of England interest rate decision
DATA INSIGHT
City wants more pension investment in UK
10%: Mooted investment target in fast-growing companies and infrastructure projects for pension funds to commit to – with half of the money pledged for UK assets by 2030. An announcement was expected on Tuesday but has been delayed for at least a week, reports The Sunday Times.
Trump’s car parts tariffs go live
25%: New import tariff on engines, transmissions and other key car parts in the US. It went live on 3 May, a month after the 25% import tariff on cars.
GLOBAL AUTO
Now California retailers are investigating Sony Afeela
A week after filing a direct sales lawsuit against Volkswagen’s Scout brand, the California New Car Dealers Association is now investigating Sony Honda Mobility’s plans for direct sales, reports Automotive News. They are exploring whether it violates a state franchise law, and whether Sony Honda Mobility is directly affiliated with Honda.
Pinewood signs with VW Japan
Pinewood Technologies has signed a five-year software deal with Volkswagen Group Japan. Its cloud-based platform will be deployed across around 350 Volkswagen and Audi retailers in Japan in what the UK-headquartered firm described as a “significant new customer base”.
OPINION
Do customers want a software defined vehicle?
Car manufacturers love a trend and with it, some jargon. And the phrase of the moment seems to be ‘software defined vehicle’. I’ve had the phrase explained to me by several OEMs and, if I’ve got it right, it means: a vehicle with a single central computer running the car’s functions and that’s connected to the cloud so it can be updated after it’s left the factory. I could go shorter: a car that can change and get better through software.
Feel free to drop me a line if you have a better or simpler definition.
The thing is, this latest obsession doesn’t seem to once take into account the prime purpose of a car – to provide personal transport.
It could just be me (as a retail buyer of a certain age) but high on my list of requirements from a car are (in no particular order); reliability, space/practicality, comfort/refinement, performance/efficiency and (recently added) mobile phone connectivity – specifically Apple CarPlay.
As much as I am a technophile, I’ve yet to see OEM software that I’d be willing to pay more for, when I would pay more for greater reliability, practicality, comfort and performance.
A quick survey on LinkedIn over the past couple of days has revealed the same thing. And those that want better in-car tech (on further questioning) actually want better mobile phone connectivity.
I want my car to be great at being a car and I’ll let my constantly updating phone do the technology, from navigation, messaging, calls and music, to speed- and risk-alerts. The only time I’ve used a modern satnav system in anger is in a Tesla – and that’s because it doesn’t offer Apple CarPlay.
Even before you get to the question of how the sales person will explain software defined vehicle to a buyer, how do you sell a new car that’s key feature is that it will be better in future without knowing what or how it will improve?
Yes, it sounds like a positive, but doesn’t it also mean the car you’re buying now isn’t finished? And is evolving software what car buyers want?
I’m happy to be proved wrong here, but will a software defined vehicle be easier to sell than one that has improved reliability or greater comfort?
Tristan Young
Editorial Director
Get in touch: tristan@autosunday.co.uk
ISSN 2977-6597