- PERRYS TO CHARGE MORE TO COUNTER NI HIKE
- ZEV MANDATE TO BE AMENDED TOMORROW
- JLR PAUSES SHIPMENTS TO US; PM PLEDGES TARIFF HELP
- CAN YOU HELP ENNIS & CO CELEBRATE VE DAY?
- TESLA EU SALES PLUNGE
- RISK OF GLOBAL RECESSION RISES
- WEEK AHEAD: UK GDP
- US RETAILER WORRIES OVER TARIFFS
- AMAZON SHAKE-UP FOR ONLINE LISTINGS
- OPINION: A silver lining to the tariff cloud?
Perrys to charge more to counter NI hike
Reducing free extras given to aftersales customers, plus increased labour rates, will form a key part of Perrys’ moves to counter the NIC and minimum wage hikes, according to managing director Darren Ardron.
“We’re going to have to charge it out,” he said, speaking exclusively to sister title Auto Market Insight. “You’ve got to try and get a bit more margin, which is going to be hard work. We’re probably going to have to look at cutting some costs… and then we’re going to have to just start charging more for aftersales.”
Ardron added that while the obvious place to cut costs would be a headcount reduction, he doesn’t believe this is the right way to go.
His solution is to charge more: “Hourly rates will have to go up. I think you’ve probably got to be a little bit smarter on aftersales. I mean, we have a lot of additional costs now, such as courtesy cars.
“Maybe we might have to start looking at charging. I know some brands do.”
He is also looking at the cost of valeting: “A huge cost to us as a group is cleaning cars after a service. It’s a frightening amount of money what you pay on that. We might just have to say some of these frivolities may have to go.”
He believes the low-cost airline model could work for auto retail. “We’ve become a little bit too good now at saying, everything is included in the price. Whereas you look at any of these low-cost budget airlines and, unless you’re taking a carrier bag on board and no luggage, everything else is an addition, isn’t it? Maybe we’ll get to take a bit of a leaf out there.”
* Read the full interview in Auto Market Insight
ZEV Mandate to be amended tomorrow
The ZEV Mandate is expected to be amended as soon as tomorrow.
Several national newspapers have speculated that manufacturers ‘flexibilities’ will be widened to allow for a smoother transition beyond the current 2026 deadline. It is thought this could include ‘borrowing’ EV sales from years up to 2030 for underperformance now as well as a link between car and van registrations to help OEMs with the slow uptake of electric LCVs.
The Times reported the changes will include dropping the ban on hybrid and PHEV cars from 2030, although mild hybrids are still expected to be banned. However, it is unclear if this will also apply to LCVs.
It is understood the amendments do not currently include reforms of headline targets, “and are unlikely to go further than what was set out in a consultation that closed in February”. Senior car industry sources have told The Telegraph those measures do not go far enough.
The amendment is also expected to help those smaller OEMs registering very small volumes of vehicles such as Morgan, Caterham and some supercar brands.Results of the consultation will also be published next week.
JLR pauses shipments to US; PM pledges tariff help
From tomorrow (Monday), JLR will pause shipments to America for a month while it assesses how to mitigate the new US 25% import tariff. It is understood JLR has a “couple of months’ supply” already in America, says The Sunday Times, which adds it takes about 21 days to ship vehicles across the Atlantic.
Options to overcome the tariffs include raising prices, and cutting back on making and other promotional material.
Of JLR’s 400k annual production, nearly a quarter is exported to the US. Best-sellers are the Land Rover Defender and Range Rover Sport. The US accounts for more revenue for JLR than any other region: £6.5bn, compared to £5.4bn in China and £5bn in the UK.
JLR accounts for £1 in every £8 of UK exports.
Cars are the UK’s biggest export to the US, accounting for £8.3bn in the first three quarters of 2024.
Auto Sunday understands that JLR could dust off plans to open a US factory it had drawn up when it was considering where to build the latest Defender. JLR assessed opening a plant at several US states in 2016, before settling on Nitra in Slovakia.
Can you help Ennis & Co celebrate VE Day?
To mark the 80th anniversary of VE Day on May 8, Ennis & Co Group has launched a heartfelt campaign inviting people to share personal stories of individuals who have demonstrated extraordinary courage, resilience and commitment either historically or in the present day.
The initiative aims to honour individuals who served the country or their community during World War II, or a modern-day relative, friend or colleague who goes above and beyond in the service of others.
The most inspiring story will receive a limited-edition, replica Victoria Cross medal made by the jewellers, Hancocks – the original makers of the VC, as a memento to celebrate VE day and continue its legacy.
Ennis & Co Group are encouraging people to participate in the initiative by sharing their stories here to celebrate the remarkable people who make, and have made, a difference to our lives.
WEEK AHEAD
Monday, Halifax house price index
Friday, UK GDP
DATA INSIGHT
Tesla EU sales plunge
1.7%: Tesla’s Q1 2025 European market share. It has halved from 2022’s Q4 peak of 3.4%.
60%: Risk of a global recession by the end of 2025 following Trump’s tariffs, according to JP Morgan. It is up from 40%.
GLOBAL AUTO
US retailer worries over tariffs
US retailers have been busy with customers rushing to beat the new Trump tariffs – but many now worry the good times are about to end. Sales could fall by a fifth, Hawk Auto Group’s John Crane told the FT. Gaves Auto Family’s Steve Gates called tariffs “disastrous”. Some retailers will have to make “tough decisions” about how many they employ, said NADA chief executive Mike Stanton.
Amazon shake-up for online listings
Amazon’s expansion into used car listings could pose a direct threat to Cars.com, CarGurus, Cox Automotive’s Autotrader and other vehicle listings companies. However, while its massive customer base and advanced retail distribution skills could shape up the used car sector, “this isn’t an easy space to navigate”, said Cox SVP Jessican Stafford.“This is a very specialised transaction,” added Cars.com CEO Alex Vetter. “We know that consumers are seeking expertise.”
OPINION
A silver lining to the tariff cloud?
US tariffs imposed this week on imported vehicles represents a seismic shift for the global automotive industry. While manufacturers such as JLR, Bentley and Rolls-Royce face challenges in maintaining their foothold in the lucrative US market, UK car retailers might find themselves uniquely positioned to benefit from greater opportunities as both traditional European and new entrant Chinese brands change their sales focus.
The government is already attempting to link the new tariffs with the review of the ZEV Mandate – the results of which are due tomorrow. However, I suspect this is more about spin, given the review was announced before Trump’s inauguration. But any easing of the Mandate has to be welcomed if it means retailers will be able to sell consumers the cars they want, rather than having to delay ICE deliveries until an EV target has been hit.
With Britain outside the EU, we can also set our own tariffs, or rather not set any tariffs.
With a relatively open market that appears to be growing, both legacy brands and new entrants could see the UK as a profitable place to sell more cars.
Increasing competition in the form of new brands will mean pricing is keen and offers plentiful. It will likely also result in increased marketing, bringing more buyers into the market.
Those brands already here will have to sharpen their acts and respond or be wiped out.
The winners will be the consumer and the retailer with one gaining a car at a great price and the other increasing volume and hopefully profitability.
For UK car retailers, this is could be a pivotal moment. The combination of competitive pricing, broader make and model options, and growing demand for EVs (without them being forced into the market) positions retailers as key players in reshaping Britain’s automotive landscape. Far from being sidelined by international trade disputes, UK dealers might emerge as winners in this evolving market dynamic.
Tristan Young
Editorial Director
Get in touch: tristan@autosunday.co.uk
ISSN 2977-6597