February 2021

46 AFTERMARKET FEBRUARY 2021 BUSINESS www.aftermarketonline.net W ith lockdown following lockdown, disruption has become increasingly routine. The situation appeared to improve after the beginning of December, only to get rapidly worse after Christmas. Government continued to support businesses, but for how long? 5 November: “Open as usual” LKQ Euro Car Parts CEO reassured customers LKQ Euro Car Parts CEO Andy Hamilton wrote to the company’s customers to reassure them that they will continue to see local branches open for their parts requirements following the imposition of the November lockdown in England. In the email, Andy said: “As per the last lockdown, our branch network will continue to open as usual. “We know it’s set to be an incredibly busy time for you, particularly as we’re expecting a doubling in normal MOT demand, with 4 million tests set to take place during November. Our teams have been working hard to make sure you have everything you need from us to meet this demand, while keeping our colleagues and our customers safe. For us, customers remain our absolute priority and we are doing everything we can to ensure we continue to offer seamless, unbeatable service.” 6 November: Business as usual during November Garages were also told that for NGK it would be ‘business as usual’ throughout the autumn lockdown. Mark Hallam, Marketing Manager, NGK Spark Plug UK, said: “We are continuing to work closely with our supply chains and logistics partners to deliver orders to in effect maintain ‘business as usual’ during the latest lockdown.” 10 November: Used car warranty surge? COVID-19 could be the cause of CORONAVIRUS ROUND-UP Through Christmas and into the New Year, COVID-19 dominated our thoughts, as more restrictions were required motorists opting for longer and more comprehensive levels of warranty cover for second-hand cars, a study suggested. Figures from the RAC Dealer Network indicate that sales of the company’s Platinum Plus warranty, which offers the highest cover in its range, now account for 8.2% of total warranty sales across the network to date in 2020 compared to 3.6% in 2019. Silver, Gold and Platinum warranties are now taking correspondingly lower percentages of the overall share. Kellie Grocott, RAC Director of Sales at Assurant, which partners with the RAC in the warranty sector, said: “It is generally accepted in our sector that during times when used car buyers might feel more economically vulnerable, sales of motor warranty products that offer higher levels of cover will tend to increase. There is a desire on the part of consumers for better protection against unexpected motoring costs.” 10 November: Used car market bounce in Q3 Continued consumer concerns about public transport during the Coronavirus pandemic may have helped the used car market increase by 4.4% in Q3 following two consecutive quarters of decline according to figures from the SMMT, 2,168,599 transactions took place between July and September, 92,217 more than the same period in 2019, with September recording the largest growth, up 6.3%. Despite the growth, the UK’s used car market is still down with 1,070,941 fewer transactions over the first nine months representing a 17.5% overall decline. Petrol and diesel cars made up 97.4% of all used transactions during the quarter, and both saw an increase in sales of 4.5% and 2.6% respectively. On the EV and hybrid front, demand for pre-owned battery electric vehicles, which saw a decline of 29.7% in Q2, recovered during Q3, growing by 34.4% and 4.4% in the year to date. Meanwhile, plug-in hybrid sales increased by 35.7%, with 10,040 changing hands. Mike Hawes, SMMT Chief Executive, said: “The car is playing an even more important role in keeping society moving as public transport becomes less attractive for many. It is encouraging to see used car sales returned to growth but, as the pandemic continues and outlets in many areas are being made to close again, the short-term outlook is less positive. The growth we’re seeing in used car sales should give garages some hope as they prepare for the immediate impact of a second national lockdown, and as they continue to deal with the pent-up MOT demand created by the extension introduced in the first lockdown.” 13 November: OESAA reassures via Savva video The Original Equipment Suppliers Aftermarket Association (OESAA) and its members reassured garages they were all very much open for business during the second lockdown via a video from OESAA spokesman Andy Savva a.k.a The Garage Inspector. Nigel Morgan, Chairman of OESAA, said: “We want to reassure all vehicle repairers of the continuity of supply of components following the disruption caused by the first lockdown. Andy Savva’s video, which also includes contributions from Steve Richardson at Alliance Automotive, Andy Hamilton