56 AFTERMARKET FEBRUARY 2024 ON THE ROAD www.aftermarketonline.net new vehicles sales from 7 July 2024?” Neil asked. “Uniquely for a Type Approval situation, it only has a threeyear validity. It potentially has a wide-ranging impact on what can be done with what equipment with what replacement parts. This is a big threat. It links to Euro7 legislation. It is being pushed through EU legislation for new ICE vehicle types from 1 July 2025.Euro 7 will tackle micro plastics and emissions from non-exhaust emissions. This includes tampering, such as the removal of the DPF.” Neil foresees problems with the way the new Type Approval rules will be regulated: “The VM is required to report faults to itself before it reports them to the authorities, which is a bit like giving the keys of the blood bank to Dracula. It has also been stated that only OEM parts would be used to rectify an issue. This could be a big problem.” Neil went on to cover three European Court of Justice (ECJ) rulings on access to technical data. One was to do with Stellantis quadrupling the cost of data, The second related to access via the OBD port to full data stream RMI. The last one was about the VIN, and whether this could be considered personal data. Hidden in the same ruling though, this clarified that data can be dealt with in bulk by independents. Finally on SERMI, he said the IAAF was fighting for a compulsory scheme. A resilient aftermarket Up next was Quentin Le Hetet, Country Director at GiPA UK, who was looking at the importance of creating A Resilient Aftermarket: “Today, we are talking about resilience in the aftermarket. Hopefully resilience will not be necessary if you are aware with the key trends. “There is a lot of legal framework around the automotive industry; It is highly regulated. If we look at what happened in 2023, the first half of the year included the MOT Consultation. The second half of the year saw the Government move the 2030 deadline for internal combustion engine cars to 2035. The decisions being made at the political level have an impact on our business. Things could change quite quickly, so it is important to keep doing what we are doing. “I like to look at new registrations, as it tells you the shape of the car parc, and tells you where it is going. The sale of new cars already looks like it is 19.6% up on 2022, but we are still 20% below 2019, so there is still a way to go. “The consequences of car sales peaking in 2016 means we have a growing 5-9-year-old car segment, which will reach its zenith in 2024 and then start to shrink. The 0-4year-old car segment is about to start growing. We are entering a new cycle; The 5-9 years old cars will be 10, and people do not maintain cars of this age in the same way. This will have an impact, so have that in mind and start planning now. By 2027, 82% of the car parc will be aged three years or older. So, 82% of the car parc will need an MOT on a regular basis.” Other challenges covered included seasonal MOT variations, and the struggle to find staff. “Apprenticeships are a brilliant tool” said Quentin, “as you can make that person fit your business. When we asked businesses why they didn’t have apprentices, the first answer was that they had not thought of it. The second answer was they could not find anyone.” Quentin discussed the differing approaches of franchised dealers and independents in this. “The final reason was a previous bad experience.” His final challenge was the electrification of the car parc. “The UK is really entering the growth period.” For the market to really grow as it grows to maturity, Quentin said “the market really need a used car market, aftersales, and infrastructure. “ Data Following an inspirational interlude where paraplegic campaigner, fundraiser and former event rider Claire Lomas shared her story, it was back to business with CCM’s Tina Drayson, who is also the Head of the IAAF’s Garage Section, and another regular Aftermarket contributor. Her session, Business First, looked at how data has become a driving force for independent garages. She started on the question of do you work in your business or do you work on your business. “Most garages are started by really good technicians, but in most cases they are not businessmen, and they do not know how to move their businesses forward.” She then went through some of the history of CCM. “if we backtrack six years, we hit a plateau. Were we profitable? Yes. Could we do better? Yes. So we started working with the Garage Inspector Andy Savva, as well as a business coach, and I still see that business coach every week. “The next step of going from A to B was to take myself out of doing all the business and the finance. To lose that control was very scary, but we had to do it. This was my first step of moving from working in my business to working on my business.” Tina then went on to cover calculating accurate labour rates. “Most independent garages are not making profit on their labour rates – they are only making profits on parts sales.” The key is adding value according to Tina, and increasing efficiency. She cited the example of brake fluid services. “Very few customers book in for a brake fluid service. They are an add-on, but we can charge £65 for these, and this also increases workshop efficiency.” Then there are trade MOTs, which were monopolising the time of the company’s MOT testers. “We now prioritise our retail customers for MOTs. It is about finding a balance where you are providing your retail customers a service.” Above: Neil Pattemore
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