AM - Automotive Management magazine May 2014 preview

automotive management

www.am-online.com May 2014 £8.00

techNologY / P 39

Using IT to get the most from your aftersales

Carmakers tell dealers they want great customer service, but pay them most to push metal. Will it ever end? P33

volumevsvalues

Fa c e t o Fa c e / P4 2

How a long-term view led Rybrook Warwick BMW to world-class aftersales

s u Z u k i / P 2 7

The Japanese ‘small car’ brand has pulled off a big UK turnaround

P r o P e r t Y / P 5 3

Is the future of the dealership digital-only?

AM’s intelligence service, AMi, is now free to use for all franchised dealers. AMi is a website launched by AM in 2011in which its primary focus is to measure overall market health and provides insights into market segmentation, relativedealer health and manufacturer brand health.

All users with a login can utilise this online service to collate and analyse data specific to the individual user’s needs.

Email now: [email protected] request your free login username and password.

Don’t be left in the dark,register for your FREE login today

iDon’t be left in the dark, register for your FREE AMi login today

NOW

FREETO ALL

DEALERS

For more information contact:[email protected] visit: www.am-online.com/ami

Looking to acquire? Let AMi help you makethe right move!

Paid for subscriptions are availablefor all non-dealers.

‘More than 200 senior dealer executives have

already signed up for access to AMi’

he balance of target-driven volume sales versus car manufacturer controls on the customer’s brand experience is a theme we’re exploring in this issue. It stems from conversations with several dealers about the rapid increase in new car sales targets they have

experienced in the past 18 months. In the depths of the recession, it seemed every national sales

company AM interviewed wanted to show its softer, caring side. Customer retention programmes, soft skills and engagement processes for their franchised networks were the hot topic. But now that carmakers are ramping up their volume-related bonuses again, will that get in the way of dealers’ values? Industry experts share their views on page 33.

One carmaker that seems to strike a reasonable balance is Suzuki. Our analysis on page 27 shows the retail-focused brand is steadily improving volumes but it understands the needs for relationships and allows its dealers a significant level of entrepreneurship. It enjoys above-average customer loyalty and high ratings for dealer satisfaction in return. That can’t be a coincidence, surely?

The AM editorial teamEmail: [email protected]: www.am-online.com

am-online.com May 2014 5

How have volume bonuses affected your dealerships’ values?

T

Jeremy BennettEditor

Tim RoseManaging editor

Tom SeymourContent manager

o u R E x p E R T C o n T R i B u T o R S

Jay nagleyA former business analyst with Porsche GB, he now runs Redspy Automotive, offering insight and

analysis into motor retail trends.This month (p30), he looks at

how many models a carmaker needs to be mainstream.

professor Jim SakerAs director of the Centre of Automotive Management at Loughborough University’s Business

School, Saker is a key figure behind the drive for management recognition and skills in the motor retail sector.

This month (p52), he suggests volume and values are not mutu-ally exclusive but problems arise if incentives unfairly favour one.

philip nothardHe is retail and consumer valuations editor at CAP, which he joined in 2010 after two decades

working in motor retail, culmi-nating in running dealerships for European Motor Holdings, Lythgoe Motor Group and Arnold Clark.

In this issue (p31), he examines whether demand in the used car market is being sustained and if the returns are still there.

wELCoME

[email protected] am-online.com/linkedinam-online.com @amchatter facebook.com/automotivemanagementUK

Check your inbox for your

Friday May 2

Ezine

Insight

39 IT and aftersales Moving from manual systems to

computerised databases integrated across departments is paying off for dealers and their customers.

42 Face to face:Rybrook Warwick BMW

Daily targets and a focus on every individual have driven the AM Awards winner for Excellence in Aftersales to global success.

In this issue May 2014

Your news

9 News digest This month’s round-up includes

good results for HR Owen, Ridgeway Group launches its own training academy and Honda cuts production at Swindon.

Market intelligence

14 New car registrationsIn March, new car registrations hit their highest point in a decade.

16 Used car values March volumes were up 11%, but

some auctioneers warned of Easter sales downturn.

19 Finance Alphera launches a loans package

for new and used EVs and hybrids, DSG hires ex-OFT official to lead compliance and Codeweavers launches finance comparison tool.

42 FACE TO FACERYBROOK WARWICK BMW’S SIMON BIRCHALL

31 Is used demand still there? As registrations explode, is demand

in the used market being sustained and are the returns still there?

33 The incentives issue Carmakers tell dealers they want

great customer service, but sales demands mean shifting units still carries a higher bonus. AM asks analysts, manufacturers and dealers if there is a better model.

22 Economic indicators Inflation has finally been overtaken

by rises in weekly earnings, which grew by 1.7% in February.

Your feedback

25 Have your say AM readers vote on whether

manufacturers incentivise volume targets or customer service more.

6 May 2014 am-online.com

Analysis

27 Suzuki’s big turnaround Suzuki has turned its lack of new

products over the past few years to its advantage and is enjoying sales growth and rising dealer satisfaction.

30 Market segmentation Jay Nagley on how many models

a modern car manufacturer needs to cover the market.

For the latest motor retail industry news, visit am-online.comSign up to get AM news daily by email: am-online.com/newsletter

Coming soon In the next issue of AM Face to face with Holdcroft, winner of

the AM Award for Best Fleet Dealer; how dealer groups can ensure their dealerships engage with social media; and the Kia Soul reviewed.

66

53PROPERTYTHE LATEST

SHOWROOM TRENDS

vehicle, Dacia’s estate car caters for a customer who truly wants only what they’ll pay for.

61 Mazda6 TourerComparison websites show our long-termer is competitively positioned against more household names.

62 Mitsubishi ASX The Japanese compact crossover can push its pulling power in an increasingly competitive marketplace.

62 Seat Leon SE 1.6 TDISeat’s UK director lays out why the Leon will be flying the flag for the brand in the UK.


27ANALYSISSUZUKI’S BIG TURNAROUND

Alphera Financial Services .......................19

ASE ...............................................................9, 12

Audi .............................................................10, 53

Automotive Property Consultancy .........56

BCA ....................................................................16

Bentley ..............................................................10

Black Horse Motor Finance ......................14

Brookside Garage...........................................9

BTC ....................................................................39

Callow Marsh ...................................................9

Codeweavers ..................................................20

Cooper Solutions..........................................40

DSG Financial Services........................19, 20

EMG .....................................................................9

Ferrari ..............................................................10

FFDL .................................................................34

FLA ....................................................................21

Gemini Systems ...........................................40

Grant Thornton .............................................33

Greenhous ......................................................40

Hendy Group ....................................................9

Honda ................................................................12

HR Owen ............................................................9

Hyundai ............................................................10

ICDP ..................................................................34

Jones Architecture and Design ...............55

Kia ......................................................................35

Loyalty Logistics............................................39

Manheim ..........................................................16

Mann Island ....................................................19

Mitsubishi ........................................................35

MotoNovo.........................................................19

Pentagon ..........................................................10

Peter Vardy .......................................................9

Pinewood ........................................................40

PSA Peugeot Citroën ...................................10

PwC ...................................................................14

Rapleys .............................................................56

Razoom ............................................................39

Reynolds and Reynolds ..............................39

Ridgeway Group ..............................................9

Rybrook Warwick BMW ............................42

SMMT ................................................................14

Suzuki ........................................................27, 35

TT Automotive Consulting .........................35

Westover Group ............................................10

D E A L E R S A N D S U P P L I E R S I N T H I S I S S U E :

49 AM Executive Breakfast Club report Business guru Geoff Burch wants motor retailers to foster loyalty and stop measuring satisfaction.

52 View from the business school

Professor Jim Saker ponders the effect of PCPs on loyalty and dealer incentives.

53 Showroom technology A look at the latest trends and

features as manufacturers drive up the standards of their retail environments.

Showroom

58 Porsche Macan Porsche has succeeded in building the sportiest of SUVs, but at 1,000 UK units, it will be rare.

60 Dacia Logan MCVBilled as a maximum capacity

33VOLUME VS VALUES AM LOOKS AT THE INCENTIVES ISSUE

market intelligence t h e n e w s i n d e p t h

16Used car values

the latest data on nearly-new, ex-fleet and part-exchange car values from the Uk’s main auctions.

19Finance

responses from the industry as one finance supplier launches products specifically supporting hybrid and electric vehicles.

22economic indicators

a selection of the key national statistics that will help Uk motor retailers to refine their business opportunities.

By Tim Rosehe plate-change in march saw new car registrations rise 17.7% year-on-year to 464,824 units.

the Society of motor manufacturers and traders (Smmt) said the monthly figure was the highest since march 2004, which was 2,130 units higher. Ford’s Fiesta and Focus led the market, accounting for 42,613 registrations on their own.

march’s campaign is typically the year’s biggest, accounting for almost a fifth of the full-year market. the result could suggest a total industry volume of almost 2.4m units for 2014.

Since the start of this year, new car

need to know n March total hits 464,824 unitsn Alternatively fuelled vehicles rose 64% to 8,713 registrations

n e w c A r M A r k e t

March registrations hit highest point in a decadeFirst-quarter trend could see full-year market volume reach 2.4 million units

t

registrations have risen 13.7% year-on-year to 688,122 units. Private registrations are up 18.1%, while the fleet market is 13.5% ahead.

the march result was “a surpris-ingly strong level of growth and a reflection of intensifying consumer confidence and the availability of great new products”, said Mike hawes, sMMt chief executive.

“given the past six years of subdued economic performance across the Uk, there is still a substantial margin of pent-up demand that is contributing to a strong new and used car market.

“there has never been a better time to buy a new car, thanks to attractive finance deals and advanced technologies that often make new cars cheaper to run. We expect the market to continue to perform posi-tively for the rest of the year, albeit at a more modest rate.”

chris sutton, managing director at Black horse Motor Finance, said its

v o l U M e s p l i t data showed record transactions in march, with PcPs continuing to be popular. “With the historic and continued low interest rates, which are also influencing improved sales through low-rate finance, we would also expect to see increased use of car finance in 2014 by potential car buyers,” he said.

phil harrold, automotive partner, pwc, said: “the threat of rising interest rates may act as a brake on demand in the future; hence my belief is that demand will return to more stable growth rates.

“One feature worthy of note is the growth in alternatively fuelled vehi-cles, which have risen 64% to 8,713 registrations.”

February Total Diesel Petrol AFV Private Fleet Business2014 464,824 222,409 233,702 8,713 246,660 194,955 23,2092013 394,806 187,239 202,249 5,318 204,271 171,726 18,809% change 17.7% 18.8% 15.6% 63.8% 20.8% 13.5% 23.4%Mkt share ‘14 47.8% 50.3% 1.9% 53.1% 41.9% 5.0%Mkt share ‘13 47.4% 51.2% 1.3% 51.7% 43.5% 4.8%Year-to-date Total Diesel Petrol AFV Private Fleet Business2014 688,122 334,962 340,376 12,784 347,958 307,193 32,9712013 605,198 292,405 304,354 8,439 294,609 282,702 27,887% change 13.7% 14.6% 11.8% 51.5% 18.1% 8.7% 18.2%Mkt share ‘14 48.7% 49.5% 1.9% 50.6% 44.6% 4.8%Mkt share ‘13 48.3% 50.3% 1.4% 48.7% 46.7% 4.6%

n e w c A r r e g i s t r At i o n s B y s e g M e n t ( p l U s p e r c e n tA g e c h A n g e ) , M A r 2 0 0 4 t o M A r 2 0 1 4


180

128%

7% 2004 2014

-4%

-51%

13%

-27%

-28%

56%

41%

160

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ands

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120

100

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market intelligence New car registrations

B i g g e s t F A l l e r s

y e A r t o d At e

March 2013 was very slow for niche brand Mg. this year, however, it has rocketed to the top of the growth league, ahead of rival value-positioned brands dacia and ssangyong. what is most impressive based on actual volume is renault’s arrival in the top 10 growers. A focused March campaign has helped the French brand add more than one percentage point of market share during the first quarter. Add on sister brand dacia’s performance and the renault network is now outperforming hyundai’s.

BrAnD YTD (%)10 Aston Martin -0.779 Infiniti -3.338 Land Rover -8.887 Mitsubishi -10.386 Smart -11.895 Chevrolet -15.394 Mini -18.163 Chrysler -18.622 Perodua -87.761 Proton -91.67

B i g g e s t g r o w e r s

y e A r t o d At e

BrAnD YTD (%)1 MG 574.072 Dacia 244.843 SsangYong 163.194 Maserati 114.945 Bentley 80.156 Renault 80.057 Jeep 41.508 Mazda 37.609 Lexus 34.4510 Seat 34.10

1 0 -y e A r M A r k e t t r e n d s A v A i l A B l e A t: w w w . a m - o n l i n e . c o m / a m in e w c A r r e g i s t r At i o n s

February Year-to-date

Marque 2014 % market 2013 % market % 2014 % market 2013 % market % share share change share share change Ford 63,149 13.59 54,702 13.86 15.44 94,876 13.79 84,347 13.94 12.48Vauxhall 50,068 10.77 42,017 10.64 19.16 74,292 10.80 69,227 11.44 7.32Volkswagen 36,276 7.80 31,091 7.88 16.68 56,271 8.18 49,260 8.14 14.23Audi 28,841 6.20 25,452 6.45 13.32 43,766 6.36 38,262 6.32 14.39BMW 26,977 5.80 21,767 5.51 23.94 37,937 5.51 31,322 5.18 21.12nissan 25,529 5.49 20,658 5.23 23.58 37,808 5.49 33,931 5.61 11.43Mercedes-Benz 22,369 4.81 18,870 4.78 18.54 33,799 4.91 29,002 4.79 16.54Peugeot 21,564 4.64 19,857 5.03 8.60 32,433 4.71 31,260 5.17 3.75Toyota 19,148 4.12 17,925 4.54 6.82 27,732 4.03 26,065 4.31 6.40Citroën 15,601 3.36 14,606 3.70 6.81 24,178 3.51 22,187 3.67 8.97Hyundai 14,930 3.21 12,157 3.08 22.81 23,103 3.36 19,986 3.30 15.60Kia 14,787 3.18 12,608 3.19 17.28 21,608 3.14 19,204 3.17 12.52renault 13,805 2.97 6,493 1.64 112.61 17,656 2.57 9,806 1.62 80.05Honda 13,036 2.80 12,471 3.16 4.53 18,265 2.65 18,144 3.00 0.67Skoda 12,907 2.78 9,711 2.46 32.91 20,307 2.95 15,504 2.56 30.98Fiat 12,749 2.74 10,020 2.54 27.24 18,782 2.73 14,877 2.46 26.25Land rover 11,987 2.58 12,994 3.29 -7.75 17,098 2.48 18,765 3.10 -8.88Seat 9,429 2.03 6,828 1.73 38.09 14,023 2.04 10,457 1.73 34.10Mazda 8,576 1.84 6,092 1.54 40.77 12,487 1.81 9,075 1.50 37.60Suzuki 8,472 1.82 7,089 1.80 19.51 11,520 1.67 9,956 1.65 15.71Volvo 6,827 1.47 5,736 1.45 19.02 9,909 1.44 8,926 1.47 11.01Mini 6,769 1.46 9,150 2.32 -26.02 9,767 1.42 11,934 1.97 -18.16Dacia 4,973 1.07 1,651 0.42 201.21 6,821 0.99 1,978 0.33 244.84Jaguar 4,150 0.89 3,505 0.89 18.40 5,474 0.80 4,978 0.82 9.96Lexus 2,142 0.46 1,550 0.39 38.19 3,040 0.44 2,261 0.37 34.45Mitsubishi 1,830 0.39 2,185 0.55 -16.25 2,727 0.40 3,043 0.50 -10.38Porsche 1,466 0.32 1,097 0.28 33.64 2,140 0.31 1,660 0.27 28.92Chevrolet 1,329 0.29 2,080 0.53 -36.11 2,561 0.37 3,027 0.50 -15.39Alfa romeo 1,134 0.24 964 0.24 17.63 1,576 0.23 1,486 0.25 6.06Smart 823 0.18 987 0.25 -16.62 1,290 0.19 1,464 0.24 -11.89Subaru 505 0.11 519 0.13 -2.70 670 0.10 669 0.11 0.15Jeep 441 0.09 312 0.08 41.35 716 0.10 506 0.08 41.50Chrysler 409 0.09 513 0.13 -20.27 590 0.09 725 0.12 -18.62MG 361 0.08 41 0.01 780.49 546 0.08 81 0.01 574.07Abarth 305 0.07 266 0.07 14.66 420 0.06 378 0.06 11.11SsangYong 295 0.06 90 0.02 227.78 429 0.06 163 0.03 163.19Bentley 250 0.05 148 0.04 68.92 472 0.07 262 0.04 80.15Aston Martin 199 0.04 141 0.04 41.13 257 0.04 259 0.04 -0.77Maserati 103 0.02 52 0.01 98.08 187 0.03 87 0.01 114.94Infiniti 34 0.01 104 0.03 -67.31 116 0.02 120 0.02 -3.33Lotus 26 0.01 37 0.01 -29.73 43 0.01 42 0.01 2.38Perodua 2 0.00 55 0.01 -96.36 12 0.00 98 0.02 -87.76Saab 1 0.00 0 0.00 0.00 1 0.00 1 0.00 0.00Mia 0 0.00 0 0.00 0.00 5 0.00 0 0.00 0.00Proton 0 0.00 8 0.00 -100.00 1 0.00 12 0.00 -91.67Other British 104 0.02 69 0.02 50.72 202 0.03 186 0.03 8.60Other Imports 146 0.03 138 0.03 5.80 209 0.03 215 0.04 -2.79Total 464,824 394,806 17.73 688,122 605,198 13.70

By Tim Rose arch recorded a 15% rise in used car wholesale volume over the previous month, according to the National Association of Motor Auctions (NAMA). The 110,471 units sold was also an increase of 10,563 units or 11% on March 2013.

The relative increase in supply of older vehicles, particularly part-exchanges, was the principal reason behind an average value decline of 3.4% since February, to £5,259. Year-on-year, the average value was 6% ahead. The proportion of cars selling first time held flat at 64%.

NAMA said the Easter break this month raised concerns in the trade that car sales may experience a downturn, however it is certain that values are not likely to see many major downward movements in the coming weeks.

“Even if retail activity diminishes, buyers still need to bring stock levels back in line so demand will challenge supply for some weeks to come,” it said.

Trade-in disposalThe UK’s largest motor auction group, BCA, reported its average value for dealer part-exchanges in March rose £109 or 2.8% to a record level of £3,906. Year-on-year March values were ahead by £340 or 9.5%. The average mileage and age of part-exchanges was lower than a year previously.

At Manheim’s auction rooms the average part-exchange value for March was up £69 month-on-month to £3,285. Year-on-year the average value was 1.7% or £55 higher despite average age and mileage having increased.

“We saw greater volumes from dealer part-exchange sources and a small increase in fleet volumes,” said BCA’s UK operations director Simon Henstock.

Volumes up 11% on March 2013Greater supplies of older vehicles behind 3.4% fall in month-on-month values to £5,259

Need To KNow n 110,471 used cars sold in March, up 15% on Februaryn Average price of used cars sold at auction fell to £5,259n Concerns over sales downturn over easter break

M

MArKET iNTElliGENCE Used car values

BCA’s average value for dealer part-exchanges in March rose to a record £3,906

Av e R Ag e U S e d vA lU e S B y S e CTo R – R o l l i N g y e A R

yeAR-oN-yeAR

43.81%97.68%

Mar 2013Mar 2014

£9,572

£8,734

Fleet/leasing

46,01445,575

40.3740.17

96.74%

95.86%

£3,906

£3,566

72,17970,915

87.62

88.52

Part-exchangeMar 2013

Mar 2014

Nearly new

Mar 2014

100.55%£20,315

10,109

8.63

Average age (months)Average mileageAverage valueSales vs CAP

Retail stock acquisitionManheim’s Market Analysis for March showed the average selling price of ex-fleet vehicles rose to £7,791, a month-on-month rise of £715 or 10.1%. The figure was £1,076 higher year-on-year, attributed to a small fall in age and mileage.

daren wiseman, valuations services manager at Manheim Auctions, said: “The headline figure of £7,791 has been strength-ened in March due to an increase in market volume generated by good-quality, late-year, low-mileage de-fleeted company cars. The seasonal influx in part-exchanges following the recent plate change has had a positive impact on the average selling price.

BCA’s Pulse report shows the average value of its ex-fleet vehicles in March also reached a new high. The average value of £9,572 was £381 or 4.1% up on February and 9.5% or £838 ahead year-on-year.

BCA’s Henstock warned that the market was already showing signs of softening in the run up to Easter and if supply begins to outstrip demand then average values will come under pressure.

BCA warned the market was showing signs of

softening before easter



A M P R O M O T I O N

Now is a great time to be talking to your customers about servicing their air-conditioning and if you are reviewing the way you do that, you may want to consider this approach to painting a picture in the customer’s mind.

It’s an idea I picked up from a colleague, Tony Sexton, and it’s featured in my latest training video on the AM website this month (www.am-online.com/symco, or on my own website, www.symcotraining.co.uk).

Tony would tell his customers that when it comes to air-conditioning, it’s really important to get it serviced – and not just because of potential leaks, etc.

“Air-conditioning,” he would say, “is a bit like having a hanky.

“Can you imagine having a hanky whenever you sneezed or coughed – but you had it for three years. At the end of three years, wouldn’t you want to get it washed? It’s no different with your air-conditioning system, we really need to get it serviced.”

Sell the value, not priceI thought that was a great way of selling the value of air-con servicing and, if you try it, I think it could work really well for you. Because to sell it successfully, you need to be able to build value rather than simply quote a price.

You need to be able to tell customers exactly what you are doing when you service their air-con system, and that means being able to communicate the features, advantages and benefits. For example:■ Features – inspect the entire system for signs of leakage, clean condenser fins, measure temperature output, etc.■ Advantages – factory-trained technicians, manufac-turer parts only, 12-month/12,000-mile warranty, etc.■ Benefits – extends life of major components, identifies leaks to prevent major repairs, etc.

Identify the features, advantages and benefits to customers of an air-conditioning service first, then shop the competition to find out how much they are charging and what their air-conditioning service actually includes. Then create a script for your service advisers or call centre staff that builds value.

How good are your service staff at selling air-conditioning servicing, asks Simon Bowkett of Symco Training

HOW TO SELL MORE AIR-CON SERVICING

Improve your selling skills onlineRegister for my internet channel, www.Symco.TV, and receive some free credits. Follow me on Twitter @SymcoSimon or call Symco Training on 01829 760 679.

HAVE YOUR SAY

AM POLL

Does your manufacturer incentivise you more to hit your volume target than to keep customers satisfied?

■ Current poll: Do you think Peugeot Citroën’s model cull is a positive step for the company in the UK? Please leave a comment when you vote. Vote online at am-online.com/polls/

■ No 21%

■ Yes 79%

@amchatter

Volume targets trump customer satisfaction, according to AM’s latest online poll. Almost 80% of respondents said they are pushed for volume targets rather than keeping customers satisfied. The trend has prompted much discussion within the industry about a potential change in culture needed within UK motor retail (see ‘Volume vs Values’ on page 33).

Are you considering ending offering GAP due to proposed regulations from the FCA?

Three-quarters of dealers are confident they will continue to offer GAP to customers despite the Financial Conduct Authority’s proposals to tighten regulation around how the product is sold.

Some 75% of respondents to the poll said they would continue to offer GAP, while 25% were considering ending sale of the product.

The FCA has proposed a number of changes to the way general insurance products are sold in the dealership. It could mean that while dealers can explain and offer GAP when selling a car, it cannot be sold when the car is purchased. Some dealers are restructuring their processes to fit with the FCA’s recommendations.

One dealer comment on the poll said: “We have already ended sales of GAP. The risk of aggravation in the future is not worth it.”

■ No 75%

■ Yes 25%


SHOWROOM t h e c a r s D r i v i n g y o u r B u s i n e s s

62mitsubishi asX

The Japanese compact crossover can emphasise its pulling power in an increasingly competitive marketplace.

63guess the car

Paul Martindale of Slaters of Abergele correctly named last issue’s mystery car. Will you identify the next one?

61mazda6 tourer

A trawl of comparison websites reveals our long-term test car is competitively positioned against more household names.

Porsche builds the sportiest SUV

60Dacia logan mcv

Billed as a maximum capacity vehicle, Dacia’s estate car caters for a customer who truly wants only what they’ll pay for.

F i r s t D r i v e : p o r s c h e m a c a n – o n s a l e n o w

By Tom Seymourhe Macan’s presence in Porsche’s line-up may still disappoint some die-hard 911 enthusiasts, but having a crossover in your model range is now essential for all manufacturers to remain viable in global markets.

The Macan – which is the Indonesian word for tiger – will be built at Porsche’s Leipzig plant at a rate of 50,000 a year. Like

“You can’t help thinking if the UK could secure more, they would fly

out of the showrooms”T

Porsche had little option but to introduce a crossover, but at 1,000 UK units it will be rare

the macan could be a licence to print money for porsche

the Range Rover Evoque, the Macan could be a licence to print money. The global desire is already there, with the majority of sales being split between China and the US, while Europe and the UK gets to fight over what’s left. UK dealers will have 1,000 units or just 2% of global production between them and there’s a 12-month waiting list.

High-flying user-choosers with the means will be scram-bling to secure a Macan too, but while Porsche has a dedicated web portal for fleet customers, they’re going to have to push to fulfil orders. Porsche knows it needs to limit the production of its models to hang on to its exclusivity, but you can’t help thinking that if only the UK could secure more units, they would fly out of the showrooms.

While the Macan is based on the Audi Q5, it shares just 25% of its parts (slightly more if you include the Audi-built diesel


F o r m o r e r e v i e w s v i s i t: w w w . a m - o n l i n e . c o m / r o a d t e s t s

speciFication

m a nuFac t urer Fin a nce oFFer

Price £43,300 - £59,300Engine 3.0-litre V6; 3.6-litre V6

petrol; 3.0-litre V6 dieselPerformance 0-62mph 4.8-6.3

secs; top speed 157-266mphTransmission 7sp auto PDKEfficiency 31.7-46.3mpg;

159-216 g/km CO2

RV 3yr/30k Macan S 45.4%Rivals BMW X3, Audi Q5, Range Rover Evoque

Model Porsche Macan SFinance type PCPDeposit £9,500Term 35 months Monthly payment £523.50Final payment £22,612.59APR 7.9%Offer ends 30/06/2014

what car?Dynamically, in all guises, there is no question the macan is superior to its closest rivals, the Bmw X3 and audi’s Q5, and it has a better-quality cabin.

what your customers

will Be reaDing aBout

the macan

the Daily telegraphDon’t blame porsche for venturing into this burgeoning market sector. the macan is dynamically capable, fast and mildly competent off-road. it’s also expensive and will remain a rare sight on uK roads.

1,000uK dealers’ allocation of the macan, equivalent to just 2% of porsche’s global production

the macan’s cabin is comfortable, but functional

rather than flashy

engine). However, Porsche engineers have managed to tease out the trademark sporting pedigree you would expect. The Macan is not a dull, lolloping behemoth – it has impressively potent engines, even with the entry-level S.

The Macan has no near rivals (the £43,300 entry-level Macan S is at least £10,000 more expensive than the BMW X3, Audi Q5 or Land Rover Evoque), so Porsche dealers need only worry about the UK’s limited product allocation driving customers elsewhere.

However, Porsche dealers will have to carefully manage customers’ expectations on waiting times so they don’t head off to the nearest BMW dealership to get their hands on an X3, which has a waiting list of five months. A while-you-wait Cayman S courtesy car, perhaps?

Customers lucky enough to get hold of a Macan can choose

from three models, the Macan S, with either a 255bhp diesel or 335bhp turbo petrol engine, and the range-topping Macan Turbo, which adds 59bhp and more technology features for the £59,300 price tag.

The Macan’s interior is what you would expect from a Porsche – dark, high quality and lots of leather. The new model’s cabin is very comfortable, but it’s functional and well put together rather than flashy.

Standard equipment includes electrically adjustable seats, 18-inch alloys, leather and Alcantara (artificial suede) seats, climate control and DAB radio. Customers that want cruise control will have to pay £348 to spec it as an option and £271 for Bluetooth connectivity.

The Macan S comes with a 335bhp 3.0-litre twin-turbo V6 for a 0-62mph time of 5.2 seconds (with the optional Sports Chrono package). The 394bhp Macan Turbo 3.6-litre twin-turbo will hit 0-62mph in a blistering 4.8 seconds.

The 242bhp 3.0-litre V6 diesel will still hit 0-62mph in 6.3 seconds and will return 46.3mpg.

All versions come with active four-wheel drive and a seven-speed, PDK automatic gearbox as standard.

Porsche has said four-cylinder engines will join the line-up after launch, which will lower the entry price.

The 3.0-litre petrol S is the pick of the current models to go for. There’s quite a premium for the top-of-the-range Turbo model and the power boost will only be worth it for the most dedicated of petrol heads. The diesel option pulls strongly and offers plenty of grunt, but the power delivery of the petrol is much smoother and it delivers a much raspier howl from the exhaust.

Customers can select between different driving modes, with Sport tightening up the steering and throttle response. The grip on offer for an SUV is suitably impressive. Dealers can also upsell a £785 Porsche Active Suspension Manage-ment (PASM) system, which will further improve handling with an army of sensors to control suspension, dampers and body roll.

The Macan isn’t the most practical luxury SUV on the market, but who buys a Porsche for practicality? Customers will be drawn in by the badge, exclusivity and performance on offer. Porsche have succeeded in making the sportiest SUV in the segment.


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Black Horse ........................................18

Close Motor Finance ......................45

Colliers International ......................54

Dealer Management Services ......41

DSG Financial Services ...................32

Frontline Solutions .........................26

Gen-3 Glasscoat ................................10

Jones Architecture & Design ........57

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Motors.co.uk ......................................17

Northridge Finance ..........................24

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RAC Cars ..............................................4

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Robert Stephens & Co ..............55,57

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Synergy ................................................56

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Documents

AM - Automotive Management magazine May 2014 preview