The No.1 magazine for automotive information SEPTEMBER 2023 www.aftermarketonline.net INSIDE LKQ Euro Car Parts: ADAS P24 LKQ Euro Car Parts’ Bob Wiffen explains why the aftermarket must get to grips with the ADAS opportunity now Aftermarket of the future P28 Neil Kennett returns with news and views on the self-driving phenomenon, which will find its way to your door any day now Month in the life of a vehicle tech P30 Frank Massey gets wet and wild as he examines BIO belts through the medium of a malfunctioning Ford Focus NEW FOR 2024: AFTERMARKET INDUSTRY EVENT TURN TO PAGES 32-33 FOR DETAILS
HERE’S AN EASY WAY TO WIN 10,000 MORE BOXCLEVER POINTS Every time you bank NGK/NTK boxes in September you’ll get an entry into our BANK&WIN Prize Draw where you could win one of 10 prizes of 10,000 BoxClever points. To see what FREE GIFTS you could claim head straight to ngkboxclever.com AND LAMBDA : NOx : EGT : MAF/MAP : CAMSHAFT & CRANKSHAFT SENSORS AND EGR VALVES THESE BOXES ARE DEFINITELY WORTH HAVING This September BoxClever garages will be picking up double points for every NTK sensor and valve they fit. That’s 200 points towards their choice of great FREE GIFTS. But that’s not all! JOINING BOXCLEVER IS SIMPLE. JUST HEAD TO NGKBOXCLEVER.COM AND JOIN ONLINE OR CALL US ON 020 7681 9227 AND WE’LL SORT IT THEN AND THERE. TO QUALIFY ALL YOU HAVE TO BE IS AN INDEPENDENT GARAGE TRADING IN THE UK. STILL NOT A MEMBER? IT’S NEVER TOO LATE!
www.aftermarketonline.net SEPTEMBER 2023 AFTERMARKET 3 CONTENTS BUSINESS 8 Big issue: Rise of the machines? 12 Adam Bernstein: Incorporate in haste, part 1 14 Rebecca Pullan: What is branding? 16 AA: The reality of EV take-up 18 Q&A: PHINIA 20 In the driving seat with Barry Lawson 22 MAM Software: Road of expansion 24 ADAS: Seize the day TOP TECHNICIAN/TOP GARAGE 26 ALLDATA Europe: Upskilling TECHNICAL 28 Aftermarket of the future 30 Frank Massey: A month in the life 34 Schaeffler: INA FEAD 36 Repairify: Radar love IN FOCUS 38 Snap-on: Expert diagnostic infomation 40 Online tools and management systems 42 Ignition 44 Lighting 46 Bearings 48 Electric and hybrid vehicles PLUS... 50 Competition/General products 52 On the road: Snap-on RCI day 54 Editor’s log: Climb every mountain 56 Garage visit: Shaikly Motor Company 58 UK Gigafactory 60 EVs and hybrids 62 Training update 64 Recruitment 66 Teabreak TIME TO THINK PINK? Editor | Alex Wells alex@aftermarket.co.uk | +44 (0) 1732 370 345 Head of Sales | Angela Lyus angela@aftermarket.co.uk | +44 (0) 7823 736 629 Managing Director | Ryan Fuller ryan.fuller@dfamedia.co.uk | +44 (0) 1732 370 340 Contributors Adam Bernstein | Dee Blick | Neil Kennett | Frank Massey | Martin Pinnell-Brown | Rebecca Pullan | James Starling | Bob Wiffen Operations Manager | Emma Floyd emma.floyd@dfamedia.co.uk | +44 (0) 1732 370 340 Marketing Executive | Hope Jepson hope.jepson@dfamedia.co.uk | +44 (0) 1732 371081 Finance Department accounts@dfamedia.co.uk | +44 (0) 1732 370 340 Chief Executive | Ian Atkinson ian.atkinson@dfamedia.co.uk | +44 (0) 1732 370 340 Published by | DFA Aftermarket Media Ltd 192 High Street, Tonbridge, Kent, TN9 1BE Alex Wells, Editor Average net circulation July 2021 to June 2022 19,073 @aftermarketmagazine @aftermarket01 @aftermarketmagazine ISSN 2516-9149 Aftermarket is published 10 times a year and is sent free of charge to applicants meeting the publisher’s criteria. All others may subscribe at £60 per anum, £120 Europe and £150 rest of the world. While every care is taken to provide accurate information, the publisher cannot accept responsibility for any errors or ommisions, no matter how caused. All rights reserved. No part of the publication may be reproduced or transmitted in any form or by any means without prior consent of the publisher. The views of contributors do not necessarily represent the views of the publisher. Copyright: DFA Media Group 2023. Welcome back; Did you have a good summer? Maybe some time off helped you come up with some new ideas. It certainly worked for us. Here at Aftermarket, we used the time to prepare a new offering for the industry; Aftermarket Event, coming to Farnborough International 2-3 October 2024. This brandnew live show will offer visitors 150 exhibitors as well as a pair of live arenas offering technical information, skills and discussion of the major issues affecting the industry. You can read more about that in news on pages 4-7, and there is also a special spread on pages 32-33. Check it out! Those of you who read Aftermarket’s regular email newsletter will know I had a unique experience during the summer. Any good story is worth re-telling though, so here we go. I was out with my family, and due to the children needing a stop, let’s call it a comfort break, we pulled into a petrol station. Coincidentally, there was a garage around the back. While I was waiting for everyone to come back to the car, I saw something I had never seen before; A postman, well, post lady, actually delivering a copy of Aftermarket to a subscriber, the issue I had worked on all the previous month clearly visible in her hand. I have seen copies at many garages, and obviously it gets shoved through my own letter box, but I had never seen it in the process of being delivered to a reader. The post lady first tried the petrol station, and on her way out I spoke to her, saying how surreal it was seeing my mag out in the wild in this way. She then trotted off down to the garage. It was a very strange moment. As for the recipients, Stedmans Garage of Worthing, we salute you. Thanks for reading! Speaking of unique experiences, 10 mechanics will shortly be making their way to the Top Technician semi-final, taking place on Saturday 2 September at the Delphi Technologies Training Centre in Warwickshire. You can see the list of semifinalists, again in news on pages 4-7. With the finals taking place on Saturday 14 October for both Top Technician and Top Garage, both competitions are now reaching the endgame for 2023. Finally, a thought. Unless you have been hiding under a rock since the last issue of Aftermarket appeared, you must be aware of the Barbieheimer phenomenon, i.e. the contrasting one-two cinematic double-punch consisting of toy-derived comedy opus Barbie and the historical drama Oppenheimer. This gift to headline writers has really been putting bums on seats at your local multiplex, but that’s not why I am bringing it up. One fact that popped out was that Barbie’s marketing budget was $5m higher than the cost of making the film. Said pink-shaded behemoth has gone on to become the highest-grossing film in the UK so far this year. What does this tell us? Now, while raw spend alone will not guarantee a successful marketing outcome, the right effort certainly will provide a positive conclusion. For garages, putting the right message out to your audience, in the right way will pay off. This means putting a plan together and following it through. What do I mean? Maybe it’s time to think pink, broadly speaking You really do get marks for effort sometimes. See what two weeks on a sun lounger can do for you? Enjoy!
NEWS Aftermarket is launching a brand-new show designed specifically for the automotive aftermarket, and it is coming to you in October 2024. Aftermarket Event will be a showcase for the sector, encompassing 150 exhibitors from across the garage industry, and taking in 50 speakers in two dedicated zones themed around the Top Technician and Top Garage competitions. This brand-new two-day live show dedicated to the UK garage sector will be the must-attend happening for everyone working in and around the garage trade in October 2024. As well as exhibitors, skills, tech and the future of the industry will be up for grabs in two dedicated seminar and live zones. Top Technician Workshop and Top Garage Theatre will provide insight and spectacle in equal measure with speakers, panel discussions and more, On the fault-finding front, Top Technician Workshop will be comprised of four areas with on-vehicle faults being fixed and explained in front of a live audience. Meanwhile, Top Garage Theatre will serve up high level discussions covering the major issues affecting businesses in the sector, including access to data, the MOT, legislative changes, developing market trends and much more. The event will also be co-located with another show, Safety, Health & Wellbeing Live. This will enable Aftermarket Event visitors to also find about the latest developments in workplace safety and occupational health at the same time. We are so excited to bring this new show to the industry, and are looking forward to throwing open the doors next October. See you there. Aftermarket Event is taking place at Farnborough International on 2-3 October 2024. For more information, visit: www.aftermarketevent.uk 4 AFTERMARKET SEPTEMBER 2023 www.aftermarketonline.net Are you ready for Aftermarket Event? Double-digit UK growth as UFI hits a six UFI Filters has been commemorating its sixth year in the UK, and the company says it is celebrating the fact with doubledigit growth for 2023, a move to a bigger office in Alcester and an increase in the size of the team. Karl Ridings, Sales Director and General Manager UK and Ireland – Aftermarket said: “It was a great opportunity to set up the UFI Filters branch in the UK in 2017. We closed 2022 very successfully, slightly overachieving the target we set when we launched the business.”
MONTH 2017 AFTERMARKET 3 www.aftermarketonline.net SEPTEMBER 2023 AFTERMARKET 5 Top Technician 2023 semifinalists named The semi-finalists for Top Technician 2023 have been announced. These are the 10 mechanics who will be competing in the semi-final, taking place at the Delphi Technologies Training Centre in Warwick on Saturday 2 September. George Bettley, Crewe SEAT, Cheshire John Fountain, Fountains Garage, Lincolnshire James Leach, JL Performance, Devizes Murdo Macleod, Ace Tuning, Scotland Simon Parkinson, Motolec, Lancashire Jack Richards, Millers Garage, Berkshire Andrew Ruellan, Ruellans Garage, Jersey Mark Sturgess, Keen and Betts, West Sussex Bryan Swales, Bryan Swales Auto Repairs, Scotland David Weston, Kia UK, Surrey Our heartiest congratulations and best wishes go to all 10 semi-finalists, and thank you to everyone who has taken part thus far. From this group, five finalists will emerge to compete in the Top Technician final, which is set to take place on Saturday 14 October, also at the Delphi Technologies Training Centre. The finals for Top Garage will be held the same day. Following the finals for both events, the Top Technician and Top Garage Awards Evening will be held that night at the Double Tree by Hilton Hotel in Coventry. Top Technician and Top Garage 2023 come to you in association with the Garage Equipment Association (GEA), the Independent Automotive Aftermarket Federation (IAAF) and the Institute of the Motor Industry (IMI). Full Event Partners: Snap-on, TOPDON, TechMan, Delphi Technologies, BookMyGarage, ALLDATA Europe, TPS and Motul. Positive conclusions for VLS gear oil investigations A number of gear oils and transmission fluids recently had their blending changed following cases brought forward by the Verification of Lubricants Specifications (VLS) following concerns over low temperature property claims. Questions were raised over Westway Lubricants 75W-90 Synthetic Gear Oil, Fanfaro 75W-90 Max 6 GL-5 Gear Oil, a synthetic gear oil suitable for use in manual transmissions, and Granville 75W90 Fully Synthetic Manual Transmission Fluid. In all cases, following the investigations, appropriate action was taken that saw claims clarified and blends amended. Mike Bewsey, Chairman of VLS, commented: “We thank the companies involved in these investigations for uplifting and disposing of affected products to protect end users and communicating their process changes to ensure future products are compliant.” For more information, visit: www.ukla-vls.org.uk Full Event Partners: GSF to “continue to operate” following Uni-Select sale to LKQ Corporation LKQ Euro Car Parts parent LKQ Corporation finalised its acquisition of Uni-Select, the owners of GSF Car Parts, last month. Commenting on the completion of the deal, GSF Car Parts President and COO Sukhbir Kapoor said: “GSF Car Parts will continue to operate with total independence from LKQ Corporation during the transitionary period between the completion of the arrangement and the divestment of GSF. Our 180 branches remain open for business as usual and will continue to offer excellent service to trade and retail customers. We look forward to the pending completion of the divestment and beginning the next chapter in GSF’s journey as a leading motor factor in the UK.” Earlier in the year, LKQ Corporation made clear its intention to sell GSF Car Parts once it had bought the chain’s Canadian parent. The deal also required approval from the Competition and Mergers Authority (CMA) in the UK. When LKQ Corporation bought Andrew Page in 2017 it was ultimately required to sell branches across nine areas to conform with competition rules. www.aftermarketonline.net
NEWS 6 AFTERMARKET SEPTEMBER 2023 www.aftermarketonline.net The extended wait for a government decision on whether to change the frequency of the MOT test is “completely unacceptable” according to the IAAF, and the organisation is urging for clarification on the issue as soon as possible. The MOT consultation run by the Department for Transport (DfT) from February to March looked at various ways of updating the MOT test in line with vehicle developments, but also brought back the idea of moving the first test from when a car turns three years old to when it hits four. According to IAAF Chief Executive Mark Field, the ongoing uncertainty is causing disquiet in the garage sector: “We’re speaking to independent garages every day and they are really concerned for vehicle and driver safety, given the vehicle defects they see of all ages within their workshops. It is completely unacceptable that the automotive industry, which remained open to provide essential support throughout the COVID19 pandemic, is being made to wait more than six months for an answer on its future and that of motorists’ safety.” DVSA figures indicate that around 300,000 vehicles fail their first MOT test at three years. Mark continued: “Moving the first test to four years under government proposals poses higher safety risks to motorists and other road users. Delaying vehicle inspections may lead to higher repair costs for motorists who may not know that dangerous faults are developing with their vehicles. “Furthermore, as the number of new electric vehicles on UK roads is increasing, these are just as likely to fail the first MOT test, underlining the importance of safeguarding the current test regime. DVSA data indicates that 57% of all electric vehicles that fail their first MOT test, fail on tyres, compared with 35% of diesel vehicles and 37% of petrol vehicles tested.” The IAAF, along with UK AFCAR, the IGA and many other sector bodies, have opposed plans to extend the first test frequency. The IAAF has written to the government, calling for clarity on what direction the test may be taken following the MOT consultation. MOT decision delay “completely unacceptable” IGA-run body to provide SERMI access The IGA is to oversee the UK’s SERMI scheme. This will enable garages and their staff that meet the requirements to access security-related repair and maintenance Information (SERMI) on the same basis that European garages gain access in the European Union. The SERMI scheme becomes law across the EU on a rolling country-by-country basis from 1 October. The RMI’s ISO company, RMI Standards and Certification (RMISC) is set to open the scheme in the UK on the same day. However, enrolment for the IGArun UK scheme is open now. Once a garage and its employees have been vetted by the scheme, they will be sanctioned to use all manufacturer technical information on security systems such as keys and ECU coding. Everything will go through a single central audit and certification process, with business and individual user identities kept private. IGA Chief Executive Stuart James commented: “After many years of negotiations over access to security-related information, progress has finally been made. The IGA has broken through the barriers to secure access to the SERMI scheme in a post-Brexit Britain. Independent garages have a real hunger to keep up with the ever-more advanced technologies in modern vehicles, and so we have seen an extremely positive response from the sector to our news with expressions of interest flooding in.” Garages looking to register for the scheme first need to obtain basic Disclosure and Barring Service (DBS) certificates for the business owner and any employees who will be registered on the system. For more information, visit: https://independentgarageass ociation.co.uk/tradetopics/sermi/ PHINIA, new spin-off from Borg Warner, launches A new company has been spun off from BorgWarner to provide combustion engine components, with an overall focus on the transition to carbon-neutral and carbonfree fuels. PHINIA, which includes the brand portfolio of Delphi, Delco Remy and Hartridge, is now independently trading on the New York Stock Exchange, and will offer systems and components for both OE and aftermarket customers. Commenting on the birth of the new company, Brady Ericson, President and Chief Executive Officer of PHINIA said: “This move gives us the freedom to grow our business.” He added: “Our strategy centers around developing sustainable solutions for internal combustion engines and leveraging our technology for alternative fuels which we believe will rapidly become a key contributor on our journey to carbon neutrality. Our vision of a sustainable future includes a wide range of solutions including carbon-neutral and carbon-free fuels.” For more on PHINIA, turn to pages 18-19.
NEWS www.aftermarketonline.net SEPTEMBER 2023 AFTERMARKET 7 Follow us on Facebook @aftermarketmagazine Legislation pushes “huge increase” in DPF demand Legislation across Europe is driving up demand for replacement DPFs, and similar measures could soon be seen in the UK according to BM Catalysts. Particle number (PN) counters have been brought into roadworthiness tests in Belgium, The Netherlands, Switzerland, and Germany, and all four countries are seeing vehicles failing to meet new Euro 5a, 5b or 6 requirements. This could come to the UK as well, as a result of the recent MOT consultation. Euro 6 vehicles include SCR technology as OE, and the market for SCRs is expected to grow fast as a result. With this in mind, BM Catalysts is already looking to expand its SCR products range. BM Catalysts Commercial Director Mark Blinston added: “These legislative changes are already driving demand for a whole range of hot end emission products, and it’s important that we look ahead and make these key investments to ensure we’re perfectly positioned to help serve the market and reduce emissions where possible. For more information, visit: www.bmcatalysts.co.uk/ The winner of the unique Snap-on Ford Model-T salesman car replica, put up as the main prize in a special prize draw run by Snap-on UK, has been named. David Parr was the lucky winner, who was the customer of franchisee Martin Squires. The first runner-up was Michael Kirkman, with Anthony Lloyd as the franchisee. The final runner-up was Wayne Trowel via franchisee Simon Gates. Both received a scale model of the Model T. Commenting on the draw, Snap-on Diagnostics M.D Mark Ost commented: “The Model T salesman car has been on multiple exhibits and evening events across the UK and Europe. It's had pride of place at Automechanika Birmingham 2023, and it has been part of the UK diagnostics business for a number of years. There is a tear in my eye seeing it go, but I'm delighted that somebody's now going to have it in their life and I genuinely hope they get a lot of fun out of it, because it is a collector's piece.” Every customer that bought a new Snap-on Intelligent Diagnostics platform on software subscription from January to July 2023 was entered into the draw. For more on Snap-on’s Model T prize draw, turn to pages 52-53. Winner of Snap-on Model T named Vehicle recalls added to MOT digital services Real-time vehicle recall information is now being included within MOT Testing Service (MTS), the vehicle’s MOT history, MOT reminders and the MOT certificate, with 47% of the cars on UK roads covered as of now. The service will provide testers and motorists daily recall data in real-time, thanks to the support of VMs, including Toyota, Ford, Honda, Volkswagen Group and Mercedes- Benz. Existing monthly SMMT data will cover vehicles from carmakers not yet taking part, but this will not appear on the MOT certificate. Commenting on the move, DVSA Head of MOT Policy Chris Price said: “We want to improve safety recall rectification rates. Providing ‘live’ recall data, and marking it more available to motorists, will further help everyone to keep vehicles safe to drive on Britain’s roads.”
8 AFTERMARKET SEPTEMBER 2023 BIG ISSUE www.aftermarketonline.net Artificial intelligence (AI) is going to change the world of work. Most industries are expected to be affected in some way, including the motor trade. The level of impact will depend on the type of work being performed, and how it takes place. Independent garages will not be immune, so businesses need to consider how they can make best use of the new tools at their disposal. As we reported in the July/August double-issue of Aftermarket, recent research has suggested that mechanics may be among those least at risk of losing their job to AI. The University of Pennsylvania, OpenResearch and OpenAI looked at how large language models (LLMs) including ChatGPT will affect existing roles in the labour market, and found that a number of automotive jobs were among the most AI-proof jobs. They specifically listed automotive glass installers and repairers, bus and truck mechanics and diesel engine specialists, motorcycle mechanics and tyre repairers and changers. In fact, higher-income white collar roles are most at risk. BT announced earlier this year that it expected 55,000 jobs to disappear by 2030, with 10,000 replaced by AI. Meanwhile, a YouGov survey from earlier in the year also indicated 62% of UK workers believe robotics and AI will erase more jobs than it creates. Indeed, the TUC has warned that protection for workers from AI is falling behind in the UK, with AI tools being used to both recruit staff and let them go. Skillsets According to David Steinberg, cofounder and CEO of AI cloud-powered marketing provider Zeta Global, many industries will see transformation as a result of AI: “Jobs will change. While the blue-collar workforce felt the biggest impact in the past, it will be white collar employees who will need to retool and shift skillsets to be successful in the golden age of AI.” Good news for mechanics perhaps. According to David, it will be management and supply chain where the biggest impact will be felt: “The roles that will grow in value include those in creative areas and those who bring in business and close business PART ONE: AI: RISE OF THE MACHINES? What does the rise of AI mean for the aftermarket? How should individuals and businesses react to the opportunities and challenges that lie ahead?
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deals. Those currently in school or in the workforce will need to identify opportunities to learn and grow for tomorrow’s roles.” Businesses that do use AI for some function may need to communicate this to their customers though: “Consumers need to be made aware that what they could be seeing or hearing may not in fact be real. They need to understand the potential repercussions to the job market and shifts in other aspects of daily life. This degree of understanding is critical to creating an empowered population that can welcome the new technology, instead of being scared of it.” If that is the likely effect that would be seen across many industries, what is the likely result of businesses in the automotive aftermarket? There will be some business owners who assume that as long as they let the regular customers know that Karen who answers the phone in reception is in fact a digital phantom, they can feel complacent and just jog on with their routine. Unfortunately, the potential impact across a business, from parts ordering to diagnostics, right through to marketing and beyond could be enormous. Yes. it could even affect your front-of-house. Wealth of insight What could the effect be on the industry as AI spreads out through the various functions of the sector? Hayley Pells, Policy Manager at the IMI, observed: “The advancement of new technologies has brought numerous benefits to the automotive sector, benefiting both motorists and industry professionals. While the impact of AI on the workforce is still unfolding, as highlighted by recent reports it has the potential to revolutionise many aspects of the automotive industry. It can drive advancements in everything from autonomous vehicles to personalised driving experiences. It can also deliver critical benefits for both the environment and the economy through the development of predictive maintenance and servicing schedules. “By leveraging AI-powered analytics and real-time data processing, automotive service providers can gather and analyse vast amounts of information about vehicles, including their usage patterns, driving conditions, and performance data. This wealth of insight allows for a more precise understanding of each vehicle's maintenance requirements, enabling the creation of personalised servicing schedules.” She continued: “Rather than relying on generic maintenance intervals, AI can take into account the unique characteristics of each vehicle and its usage patterns; An approach that ensures servicing is optimised for the individual motorist. Plus, the advantages of AI in identifying potential issues or maintenance needs before they develop into major problems could be considerable. By continuously monitoring and analysing vehicle data, AI systems can detect early warning signs and provide timely alerts to both motorists and service providers. This proactive approach will not only prevent breakdowns and minimise unplanned downtime; It will also enhance overall vehicle reliability and, as a consequence, deliver significant environmental an economic benefits.” Businesses will not be able to dive in blind on this front though noted Hayley: “Of course, such adoption of AI technologies must be matched by a commitment to training. As AI becomes more prevalent, it is vital to ensure the workforce remains equipped with the necessary skills with continuous professional development to adapt and work alongside the new innovations effectively. The significance of maintaining a strong focus on safety and security as the automotive sector adopts AI technologies is, therefore, central to the IMI’s mission. IMI TechSafe will address these concerns through guidance and best practice on the safe integration and use of AI across all areas of automotive. “ 10 AFTERMARKET SEPTEMBER 2023 BIG ISSUE www.aftermarketonline.net
SEPTEMBER 2023 AFTERMARKET 11 www.aftermarketonline.net She concluded: “AI has the potential to transform the automotive industry – and the road using public. However, for the transformative power of AI to be fully realised, the importance of ongoing training and safety considerations cannot be underestimated. It must be fully recognised with clear and focused investment by government and employers.” Evolving landscape AI-derived tools will not be creating themselves, just yet. How is the expansion of AI affecting companies that offer digital tools in the sector? According to Leo Freebairn, National Sales Manager at TechMan, the company is investing in AI to optimise garage management efficiency: “In a world of advancing technology, the question of whether AI will replace humans in various professions often arises. However, a recent study has indicated that vehicle technicians are among the professions least likely to be replaced by AI. While this news may initially be viewed as positive, it prompts us to examine the potential impact of digitisation in the automotive industry and the importance of training in this evolving landscape. As a forwardthinking garage management software company, TechMan recognises the significance of AI and is actively investing in its implementation to aid garages in their daily operations.” The impact of digitisation was being delayed according to Leo, but with the rise of AI it will certainly be felt now: “As vehicles become increasingly digitised, the role of technicians may undergo significant transformations. While AI may not replace technicians entirely, its impact could be delayed as vehicles continue to evolve. Advanced diagnostics, augmented reality guidance, and predictive maintenance are examples of areas where AI can enhance a technician's abilities. As a result, the need for comprehensive training becomes more crucial than ever. TechMan understands this and strives to provide garages with the tools and knowledge necessary to adapt to these changing dynamics.” Substantial role On what role AI can play in garage businesses, Leo observed: “TechMan's dedication to implementing AI reflects our commitment to empowering garages with innovative tools that amplify human potential and drive success in the digital age. “Beyond the technician's workbench, AI can play a substantial role in various aspects of garage management. For instance, AIpowered reception systems can streamline customer interactions, improve appointment scheduling, and enhance overall customer experience. By leveraging natural language processing and machine learning algorithms, AI can handle routine queries, freeing up staff to focus on more complex tasks that require human ingenuity. “Similarly, AI can optimise parts ordering processes by analysing historical data, monitoring inventory levels, and predicting future demand. This enables garages to reduce costs associated with overstocking or stock shortages, ensuring timely availability of required parts. By integrating AIpowered systems into their operations, garages can improve efficiency, reduce errors, and enhance overall productivity. While AI undoubtedly offers valuable assistance in various areas of garage management, the nature of the work requires human ingenuity. Front-ofhouse interactions, such as building trust with customers, offering personalised advice, and understanding nuanced requirements, are best handled by human professionals. The ability to think critically, solve complex problems, and adapt to unique situations remains essential in the automotive industry.” Opportunities and challenges Commenting on TechMan’s commitment to AI implementation, Leo said: “As a garage management software company, TechMan recognises the potential of AI and the importance of harnessing its capabilities to empower garages. Through continuous research and development, TechMan is investing in AI solutions that enhance garage operations, improve efficiency, and provide technicians with valuable tools. By integrating AI into their software, TechMan aims to facilitate a seamless transition for garages into an increasingly digitised future.” Leo added: “The rise of AI in the automotive industry presents both opportunities and challenges. While vehicle technicians may not be replaced entirely by AI, the impact of digitisation cannot be overlooked. Training becomes more critical than ever as the industry evolves. AI can undoubtedly play a significant role in enhancing garage management, from reception systems to parts ordering processes. However, human ingenuity remains indispensable in delivering personalised service and addressing complex challenges.” Make sure to come back next month, as Aftermarket’s examination of the potential impact of AI on the sector concludes in the October issue. While vehicle technicians may not be replaced entirely by AI, the impact of digitisation cannot be overlooked ”
Company tax law can trip up business owners. So, to understand where they make expensive mistakes, Aftermarket sought the advice of two accountants for their top five causes for concern. First, we spoke to Helen Thornley, Technical Officer at the Association of Taxation Technicians. Helen Thornley makes the point that in being a separate legal entity a company needs its own bank account and the funds in that account belong to the company. She says “a company is owned by the shareholders and run by directors.” Even so, she reminds us that “the assets of a company belong to the company, and directorshareholders can’t use the company account as their personal piggy bank, even if they own 100% of the shares.” Directors wanting access to company cash will need to pay themselves a salary or vote dividends, both of which will have personal tax consequences for the individual. Transfer of assets The second cause for concern for Helen is that of asset transfer. She warns that “the transfer of assets such as property, plant and machinery can all have tax consequences. There are reliefs and elections available to mitigate the tax costs of incorporation, but certain conditions will need to be met.” Thornley says that “particular care needs to be taken with assets which are used both in the business and personally, and also with land and property.” Then there’s the question of whether or not to transfer property such as trading premises into the company. If the decision is taken to transfer in, then apart from upfront costs including fees for transferring any mortgage to the company, and taxes such as Stamp Duty Land Tax (LBTT/LTT in Scotland and Wales) and Capital Gains Tax, Helen cautions that “the property will form part of the company’s assets in the event of a claim against it. But if the property is kept out of the company – which may allow for the charging of rent and help to protect it from claims against the company - that could reduce the availability of Business Property Relief in the future and claims for tax reliefs on future sales could be affected.” 12 AFTERMARKET SEPTEMBER 2023 BUSINESS www.aftermarketonline.net INCORPORATE IN HASTE AND MAKE MISTAKES AT LEISURE Part one: Just because you are a business, it doesn’t mean you are set up as the right kind of business, and getting this wrong can cause big problems BY Adam Bernstein
SEPTEMBER 2023 AFTERMARKET 13 www.aftermarketonline.net d Protecting As an independent trade body, VLS is here to protect you by verifying that lubricant products really can deliver what they claim. That means you can have confidence that the engine oils you use in your customers’ vehicles are fit for purpose. If you have any concerns about a lubricant product, report them to us on 01442 875922 or d i @ kl l k www.ukla-vls.org.uk workshop you and your admin@ukla-v vls orguk Overdrawn directors’ loan account The third mantrap outlined by Helen follows from failing to keep company and personal expenditure separate as it can lead to an overdrawn directors’ loan account - “if this is not spotted early there will be interest and penalties to pay.” In overview, if a director has put money or assets into the company then the company owes the director. The problem arises, as Helen tells, where a director draws more money out than the company owes them, which is effectively treated as a loan to the director: “If this loan is not repaid within nine months of the company’s year end, the company must pay what is effectively a penalty charge of 32.5% of the amount overdrawn at the year end to HMRC.” The net effect is that either the director will need to transfer money (or assets) back to the company or vote themselves more dividends or salary – which will have a personal tax consequence – to give them the funds to repay the loan. If a director is overdrawn by more than £10,000 at any time during the year, they must also pay interest to the company at a minimum rate set by HMRC or be assessed on a benefit in kind. Informing customers and suppliers Another area where Helen sees directors make mistakes is over the failure to inform customers and suppliers of the business that it has incorporated and that they are now dealing with a different legal entity. As a result, she advises that “all websites, email signatures, letterheads, stationery, invoices, order book etc. need to be updated to show the company’s name, where it was registered, the registered number, and the address of the registered office.” There are fines for both the company and directors for noncompliance. Statutory duties The last of Helen’s five trouble spots revolves around company directors not fulfilling their legally-set responsibilities to the company. She says that these include acting to promote the success of the business, exercising reasonable skill and care, as well as avoiding or managing conflicts of interest between what is for the benefit of the company and what would benefit the director personally: “Failure to do this can result in serious legal consequences for the director who might be held liable personally for any failures to uphold their duties.” Next month: Advice from Kieron Batham-Tomkins.
What is branding? More importantly, what does branding mean to an independent garage today? Is it really important? Allow me to share my ideas. The most significant part is the holistic, allencompassing, total branding that we need to do. This is to establish our differences and to build relationships for sales, both to customers and even more important, to our staff and future staff. This, I think, is the bit that makes you scratch your head. Allow me to help clear that fog. I like to think of it like this; Branding is like a promise a business makes to everyone. Conversely, we all know what happens when we break a promise. Get branding right and you have trust. Get it wrong, and you will have anger and feelings of being let down and possibly tricked. Therefore, branding is, in my view, knowing, understanding and getting what you expected when you visit a place. Considering the likelihood that you will have been Googled before people visit, potential customers will already have their own preconceptions of you and your workshop, then you need branding to be right. Garages are no different to any other business. Reflection Where do you start with this branding malarkey? Well, in an independent garage, it starts with the owner. Branding after all is a highly personal affair and will be different for us all. It will reflect your views, thoughts and possibly your desires. Whatever these are, that’s fine, but the key is that they must match across all your business, and all parts of you as a person. In your owner-run business, when you grow, this then needs to also be reflected by your team. It’s all matchy-matchy with branding; Think blue denim jacket and blue jeans – this is a perfect combination in the branding world! Probably less so in fashion terms, but this isn’t Vogue, it’s Aftermarket. 14 AFTERMARKET SEPTEMBER 2023 BUSINESS www.aftermarketonline.net WHAT IS BRANDING? Rebecca is thinking about branding, what it means for a garage business and how you could be using it most effectively BY Rebecca Pullan, Carmaster Garage
SEPTEMBER 2023 AFTERMARKET 15 www.aftermarketonline.net Your professional, highly technical website and Facebook page with generic pictures of a chappie in royal blue overalls, (we’ve all seen it) needs to follow through to each of those customer touch points. Each of these must in turn scream professional and technical – and it doesn’t stop here. You must also be professional as an employer and, dare I say it, as a person too. What happens though, when your customer turns up and your team are wearing black jumpers and trousers, and no one is in the least bit professional? This does not feel good to the customer. Another brand style might be ‘family-run’ or ‘family values’. This is something I certainly aspire to, but if your employee needs to take time off for childcare and you give them a hard time or even worse disallow it – do they believe your brand? Do they trust you? It’s a stab in the back, don’t you think? So, what does it mean for you? Firstly, don’t fabricate a brand that is not you, you will not be able to keep it up – you will be caught out by customers or employees or most likely both. Find your own brand, your own reflection of your loves and passions and what you are trying to create. This will be far more believable and create trust quickly and easily for everyone within and served by the business. Understand Of course, if you think you’re not going to bother with this mumbo jumbo stuff, you’re just here to mend cars and run a garage, think again my friend – you have a brand, it’s just probably not saying the right thing at all. Could it be saying “Don’t bother me?” Think of the Golden Arches of McDonalds; You’re driving down a motorway, somewhere you have never been before. You either choose to stop or not, but you know exactly what those arches say and mean. When you do stop and purchase, you know everything, from their car parking, toilets, wi-fi, value for money etc. You are 100% relaxed about going in – you understand what they offer. Now, of course, this means that you might not be someone’s perfect match but at least when they buy from you, they will understand from the very start what they are getting. It will balance and make sense in their heads, and it will be a relaxed purchase. It will cause far fewer issues because we are all subconsciously aware of branding. Does everything in your business match? Start by asking yourself some simple questions. Does your Facebook page scream ‘better than the main dealer’, but outside the front of the workshop looks like a scrap man has emptied his truck out to one side? How do you feel about this? Certainly, customers will feel uneasy, they will doubt you. They were not expecting this, and they will wonder “What else do I need to worry about? This was not what I was expecting.” Does your website say ‘trust us with your tens of thousands of pounds worth of sports car,’ then when you arrive the mechanics are filthy and reach out for your key with oily hands? How can your customers trust you now? They may feel nervous, and may even feel tricked. Does your business say ‘We can mend all makes and models, any problem’, yet no one can remember the last training day anyone went on? All the team know that certain jobs are not possible in the workshop, the staff stumble on the phone to the customer when they try to book in. Your staff feel compromised, embarrassed and what do they say about your business when you are not listening? Branding, when done correctly, is beautiful. It floats gently across every single part of your business. It is the sun shining over your workshop, enhancing all areas, making them look great, and it feels warm too. It will, if done properly, create trust, keep that promise you made, and bring all the many treasures that come from that. Lastly, remember, double denim looks good on a business, just don’t make it your staff uniform. Branding is, in my view, knowing, understanding and getting what you expected when you visit a place ”
The electric vehicle (EV) revolution is well underway, with battery electric vehicles (BEVs) making significant strides in the automotive market. According to the Society of Motor Manufacturers and Traders (SMMT), BEVs accounted for 32.9% of total new car registrations in December 2022, contributing to a yearly share of 16.6%. Although we're on the right track, there's still much to do before achieving the government's 2030 target of transitioning to alternative fuels. Rapid advancements in technology, increasing environmental awareness and government incentives have contributed to the rise in EV adoption. The UK government has pledged to ban the sale of new petrol and diesel cars by 2030, spurring investments in charging infrastructure and promoting the development of alternative fuels. As a result, businesses are now increasingly considering EVs as a viable option for their fleets. EV purchase costs and available options Despite the initial high purchase cost of EVs, government grants and tax incentives can in some circumstances make them more affordable for both businesses and individual 16 AFTERMARKET SEPTEMBER 2023 BUSINESS www.aftermarketonline.net The move to EVs means both opportunities and challenges for fleets, as well as garages buyers. Additionally, the rise of vehicle subscription services provides a flexible alternative to traditional car ownership. These services typically offer a flat monthly fee that covers various expenses, including insurance, maintenance, and charging. This allows businesses to flex their fleet size and composition as needed, reducing the risks associated with long-term investments. Operating costs Operating an EV fleet comes with its own set of challenges, including the impact of rising energy prices, the Ultra Low Emission Zone (ULEZ) implications, and planned changes to EV Vehicle Excise Duty (VED), which is a vehicle tax based on the CO2 tailpipe emissions of your vehicle. With energy prices on the rise, it's crucial for businesses to consider the overall operating costs of EVs. However, reduced maintenance needs and fuel savings may offset these costs in the long run. We're also beginning to see significant changes to the EV recharge infrastructure as it's recently been reported that for the first time off-peak ultra-rapid charging is cheaper per mile than petrol, during certain periods of the day. ULEZ expansion and stricter emissions regulations THE REALITY OF EV TAKE-UP BY James Starling, Director of Business Services at the AA
SEPTEMBER 2023 AFTERMARKET 17 incentivise many businesses to adopt EVs to avoid fines and fees. However, the planned changes to EV VED will increase the cost of ownership for some businesses as EVs are brought into the taxation system. Best practice tips on EV SMR Naturally, the transition to EVs has aftermarket implications and opportunities too. Just like traditional ICE vehicles, EVs require regular servicing and checks, the fees for which must also be factored into transition costs. Collaborating with the right partners is essential for businesses navigating the move to EVs. Prestige Fleet Servicing, a partner of the AA, is a leading provider of high-quality maintenance solutions for fleets across the UK. They have rounded up the following top servicing, maintenance and repair (SMR) tips for companies making the transition to EVs: There are fewer EV-capable garages in the UK, so it’s important to work with your fleet management provider to ensure they have SMR coverage local to your drivers Confirm your SMR provider has the appropriate equipment and trained technicians in place to service your EV fleet, with a minimum of Level 3 certification Stay proactive by monitoring SMR spending based on vehicle types and telematics data to detect trends and identify any concerns. Since EVs have quick acceleration, which can lead to added tyre pressure, this allows swift identification of more heavy footed drivers who may benefit from additional training to improve their driving technique Opportunities for businesses and drivers The transition to EVs presents businesses with opportunities for cost savings, improved environmental performance, and access to a growing market segment. A well-managed EV fleet can offer long-term financial benefits, while simultaneously improving a company's green credentials. Furthermore, drivers benefit from lower running costs, improved driving experience, and access to various incentives and privileges such as exception from congestion charges, and in some cases heavily subsidised parking fees. In conclusion, the EV revolution is reshaping the automotive landscape, offering numerous opportunities for businesses and drivers. By staying informed about the latest developments in technology, policy, and infrastructure, companies can make the most of the shift to electric vehicles and contribute to a greener, more sustainable future. At the AA, we consider ourselves at the forefront of supporting more accessible ways for driving, which is why we see it as an important responsibility to keep fleets informed on the latest developments and guidance from the world of alternative fuels, to ensure manufacturers and suppliers from around the world are receiving a simpler, smarter and safer journey and a positive driver experience or their road to net zero. To download a recent Yellow Paper from the AA on alternative fuels, visit: https://bit.ly/3LLeKBj www.aftermarketonline.net For peace of mind always use a Garage Equipment Association member. GEA accredited engineers work to an industry code of conduct. Your assurance their skills and knowledge have been independently assessed. IS YOUR EQUIPMENT ENGINEER GEA ACCREDITED? Ask your engineer for his accreditation card ! The Upholders of Industry standards since 1945 The Garage Equipment Association www.gea.co.uk GEA ACCREDITED ENGINEER Name Company Discipline Exp Date ID Number XX123456 XX123456 XX123456 XX123456 XX123456
In July, PHINIA spun off from BorgWarner to focus on the transition to carbon-neutral and carbonfree fuels for internal combustion engine vehicles. The new entity, which includes theDelphi, Delco Remy and Hartridge brands, will be centered on fuel systems, and components for OE and aftermarket customers. Aftermarket spoke to Neil Fryer, Vice President and General Manager Global Aftermarket at PHINIA about the new company. Tell us about the thinking behind the creation of PHINIA We were originally Delphi Technologies, which was acquired by BorgWarner in 2020. We have continued during the period of ownership to develop the aftermarket segment, really focusing on our own technologies, which would include diesel fuel injection, gasoline fuel injection and vehicle electronics, and adding to that other items like 18 AFTERMARKET SEPTEMBER 2023 BUSINESS www.aftermarketonline.net PHINIA, an independent publicly listed company which recently spun off from BorgWarner will focus on internal combustion engine systems and aftermarket products chassis products, steering, suspension and brakes, where we bring those to market. We have a broader portfolio than just our OE offer. That offer is really built around being a combination of a Tier One aftermarket business, plus an aftermarket specialist in the products which we bring to market, although they're not OE products. BorgWarner is going in a direction increasingly focusing on electrification. We decided in the end, to spin off as PHINIA because we have a different strategy. That strategy is very much to focus on combustion, but we believe that there is a pathway to carbon-free combustion using synthetic fuels, hydrogen and other alternatives such as ethanol and methanol. We also believe that in certain sectors, like commercial vehicle and industrial, combustion is going to be around for a long time, so we see an opportunity to offer an alternative pathway for sustainability in these sectors. As the strategies of the two companies were diverging, Inset above: Neil Fryer Q&A: PHINIA
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