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NEWS 6 AFTERMARKET SEPTEMBER 2020 www.aftermarketonline.net £1,000 bonus to bring back furloughed staff Garages with staff on furlough will be able to get an £1,000 bonus for every employee brought back to work. In his Summer Statement address, the Chancellor’s laid out his programme for boosting the post-lockdown economy, which included the furlough return bonus, as well as a £2.1 billion scheme to provide subsidised six-month work placements for 16-24 year olds on Universal Credit. There was also a promise to provide 30,000 new apprenticeships for young people in England, giving firms an £1,000 for each new work experience place they offer. NFDA Director Sue Robinson commented, “It is positive that following the support provided to employers through the Job Retention Scheme, the government has committed to continuing to help employers retain their workforce and create new roles.” Battery checks during MOT surge encouraged Yuasa is encouraging garages to introduce a battery check as part of their MOT and service schedules to identify if the vehicle’s battery has been damaged due to reduced usage during lockdown. Around one in ten vehicles entering the workshop require a replacement battery the company previously found – a figure that Yuasa expects is now much higher post-lockdown. James Hylton, Managing Director of GS Yuasa Battery Sales UK said: “Over the past few years, thousands of garages have increased their revenue by joining Yuasa’s Always Check The Battery scheme, to ensure garages and workshops are ready for the demand.” Yuasa are providing complete workshop battery testing kits, including a GS Yuasa battery tester. To find out more visit www.yuasa.co.uk/testkit Beat rush says the DVSA Even used car sales have not been immune to COVID-19, as figures from the SMMT showed sales in the UK’s second-hand car market fell by 48.9% in the second quarter of 2020. The drop followed a busy January and February, with growth going into reverse as Coronavirus lockdown swept the UK. Motorists were hardly driving, so trading in their existing car was for many going to be a very low priority. The pace of decline eased as the quarter progressed, from a peak year on year loss of 74.2% in April to 17.5% in June, as transactions began to restart. Demand for used battery electric vehicles, which grew by 44.8% in the first quarter, fell in the second by 29.7% to 2,288 units, although market share remained stable at 0.2%. At the same time, sales of plug-in hybrids dropped 56.3%, with just 3,249 changing hands. Meanwhile, petrol and diesel car transactions decreased by 49.2% and 48.5% respectively, although combined they still accounted for 98.3% of sales in the quarter, equivalent to 1,021,963 units. In the first six months of 2020, used car transactions were down by 28.7%, with 2.89 million units changing hands. The second quarter represented more than 85% of the 1.16 million lost sales so far this year. SMMT Chief Executive Mike Hawes said: “As devastating as these figures are, with full lockdown measures in place for the whole of April and May, they are not surprising. As the UK starts to get back on the move again and dealerships continue to re-open, we expect to see more activity return to the market, particularly as many people see cars as a safe and reliable way to travel during the pandemic.” Andy Hamilton, CEO at LKQ Euro Car Parts, observed: “We expected to see sales pick up in June, as lockdown restrictions were relaxed, and with people being encouraged to use private modes of transport. Assuming this continues, it’s good news for the independent aftermarket, as older cars that are out of warranty will likely be taken to local garages for service and repair work, rather going back to the dealers. “After an extended period with little to no business coming through the workshop doors, this will give independent garages a welcome boost, and an opportunity to expand their customer base.” Andy added: “With a spike in MOTs on the way as well – as those that were deferred in lockdown will soon need to be completed, alongside those that are also due – the key for garages is going to be managing this demand safely and effectively." To avoid a MOT backlog at garages, the DVSA has been encouraging motorists who took advantage of the MOT exemption to get their car tested as soon as possible. The DVSA’s projections, based on due dates and vehicle MOT expiry dates, show that demand for MOTs will be at around 3.4 million in September, 4.8 million in October and November and 4.2 million in December. This demand is predicted to be around double the normal volumes, approximately 2.5 million per month. Motorists who want to keep their MOT date can book a test up to a month, minus a day, before it is due and still retain their original date. DVSA Head of MOT Policy Chris Price said: “We know that garages are likely to be very busy this autumn with double the usual demand.” Used car sales nosedive in Q2