July/August 2020

JULY/AUGUST 2020 AFTERMARKET 7 Tragic death reinforces DIY dangers One in six jobs in the overall UK automotive sector is at risk of redundancy, a survey from the SMMT has revealed, and the organisation is calling for a dedicated restart support package to safeguard jobs when the Coronavirus Job Retention Scheme winds up at the end of October. Speaking at the SMMT International Automotive Summit 2020 on 23 June, SMMT Chief Executive Mike Hawes said: “Government’s intervention has been unprecedented, but the job isn’t done yet. Just as we have seen in other countries, we need a package of support to restart; to build demand, volumes and growth, and keep the UK at the forefront of the global automotive industry to drive long-term investment, innovation and economic growth.” The potential dangers inherent in some DIY car repairs were laid bare recently via the death of an aspiring amateur mechanic who died of carbon monoxide poisoning in his own car. An inquest at Hull Coroners Court heard 22-year old Dillon Denton was found dead in his VW Golf in the car park of Sainsbury's and Homebase in Hessle in the East Riding of Yorkshire. He had a fatal level of carbon monoxide in his bloodstream at the time. An exhaust repair kit was also found in the back seat of the car. Dillon died "by unforeseen carbon monoxide inhalation on 5 March 2019,” said the Coroner in the narrative verdict. Speaking to Hull Live last year, Dillon’s sister Roxann said her brother had been planning to sell the vehicle the day he died, and that he “dreamed one day of having his own garage.” COVID-19: One in six jobs under threat Independent garages expecting a surge in customer demand resulting from motorists being unwilling or unable to buy a new car in the wake of COVID-19 and post-lockdown uncertainty could soon have to contend with a scrappage scheme. Car manufacturers and the franchised dealer sector are discussing with government a potential £1.5 billion scrappage scheme. The proposed market stimulus package being hammered out in secret talks would see £2,500 taken off the price of a new car, with the aim to achieve an extra 600,000 sales. Such a nationally sanctioned scheme ran in 2009 and led to 400,000 additional sales. Were scrappage to return, it would remove older cars that are serviced in the aftermarket from the road. They would be replaced with new cars more likely to be seen in dealer workshops for repairs and maintenance. The scheme is not likely to discriminate between diesel and petrol cars, and EVs and hybrids. In correspondence between government and the SMMT, the trade body asserted that the scheme would need to “support the entire market, not just disproportionately favouring specific segments or technologies, recognising the diverse nature of UK automotive manufacturing”. In a letter sent in May to Chancellor of the Exchequer Rishi Sunak and Business Secretary Alok Sharma, SMMT Chief Executive Mike Hawes said the “primary benefit would be in jump-starting the market, the sector and the economy without further drain on the public purse.” However, the IAAF says a new scrappage scheme may not necessarily be the answer. IAAF Chief Executive Wendy Williamson said: “Motorists are currently under great pressure, and they should not be penalised for keeping hold of vehicles that are in good working condition and can continue to be serviced, repaired and maintained long into the future. “If introduced, it could have a significantly negative effect on public mobility and the automotive aftermarket long term, especially as most of the vehicles eligible for the scheme will still be very much roadworthy. “Not only is this unfair to consumers, but it is putting the aftermarket at great risk, as it will result in a direct decrease in the number of vehicles entering independent garages. With a newer vehicle parc, there is also a risk that VMs could potentially gain a monopoly on access to vehicle technical condition data, raising the question of data access. “It’s crucial that any proposals are reviewed as the economic impact of a scrappage scheme could be detrimental to the aftermarket and place an unnecessary financial burden on the consumer.” Wendy added: “With the forthcoming block exemption legislation renewal due in 2023, the aftermarket should have the same access rights as the franchised sector, providing the workshop is equipped with appropriate tools and equipment, thus creating a level playing field for all.” Is scrappage scheme to scupper post-lockdown prospects?