December/January 2013 Issue - Retail Motor Industry Federation

The trade magazine of the retail motor industry federation 

ISSN 2046-3073 

AUTOMOTIVE INSIGHT | FORECOURT 

n DECEMBER ‘12/JANUARY ‘13 | £4.00 

RMI 

NEW PENSIONS PATHWAY 

ARE YOU READY? 

IGA 

building for a 

bright new future 

NFDA 

Commission disclosure 

information pack 

NAMA 

launches new 

cv report 

NAB 

get your voice heard 

MRA 

dealer survey reveals 

profits the big worry 

NAMA 

LCV Report 

Details inside 

FORECOURT 

pra leads the 

campaigning way 

a merry christmas and a prosperous 

new year to all our members 

DECEMBER ‘12/JANUARY ‘13 • WWW.RMIF.CO.UK • AUTOMOTIVE INSIGHT • 1

2 • AUTOMOTIVE INSIGHT • WWW.RMIF.CO.UK • DECEMBER ‘12/JANUARY ‘13

December 2012/ 

Useful Contacts 

Head Office 

201 Great Portland Street 

London, W1W 5AB 

Tel: 020 7580 9122 

Fax: 020 7580 6376 

Member Helpline 

Tel: 0845 8399 205 

Email: helpline@rmif.co.uk 

Joining the RMI; member benefits; 

consumer issues; legal and HR advice; 

general enquires 

Trust My Garage 

Tel: 0845 305 4230 

Email: info@tmgmembers.org 

Sue Robinson - 

Director, NFDA, MRA, NAMA, 

Press and Policy 

Tel: 0207 307 3424 

Fax: 0207 307 3406 

Email: sue.robinson@rmif.co.uk 

January 2013 

RMI 04 

UPDATES 

FEATURES 

04 RMI in Northern Ireland 

06 How to win MOT peace of mind 

04 Consumer Law Reform – 

it affects you! 

08 That was the year that was – 

the RMI’s 2012 

05 RMI opposes one-size fits all MOT 10 Automatic Pension Enrolment – 

act now 

12 RMI – making your voice heard 

where it matters most 

14 Annual Dinner. Full report 

iga 16 

16 IGA builds for a bright new future 30 Trust My Garage builds to offer the 

17 New Online Technical Forum 

best service possible 

20 Diagnostics - 

constantly evolving sector 

34 Simmo’s Solutions; 

your problem, our answers 

NFDA/Cv 36 

36 NFDA wins the day 

40 Commission Disclosure 

36 Member plays lead training 


tomorrow’s technicians 

41 NFDA marks first Autumn Ball 

37 VOSA safety recalls 

and awards 

38 Mileages on MOTs to beat clocking 

NAMA/MRA 42 

42 Shoreham Auction supports BEN 44 NAMA used car data 

42 Older cars keeps sales on the move 46 Profits biggest worry reports 

43 Manheim acquire Dealer Auction 

MRA survey 

43 NAMA launches new CV report 

Stuart James - 

Director of IGA and Operations 

Tel: 07528 977 167 

Email: stuart.james@rmif.co.uk 

Communications and Policy Officer 

Rosanna Collings 

Office: 0207 307 3424 

Email: rosanna.collings@rmif.co.uk 

NAB 48 

48 Get your voice heard 

50 BAL in administration – 

49 Car insurance hits year low 

a legal view 

FORECOURT 54 

54 PRA fights for its members 

55 Two tier pricing unfair says PRA 

through 2012 

58 Forecourt criminals under attack 

REGULARS 60 

60 Commission led sales – new rules 62 HR Q and A – 

61 Workplace safety a must say Allianz 

the lowdown on contracts 

Editor 

Vaughan Freeman 

vaughanfreeman1@gmail.com 

Sub-Editor 

Dawn Pardoe 

dawn@pw-media.co.uk 

Production 

PW Media & Publishing Ltd 

Tel: 01905 723 011 

Advertising 

Suzie Scott Tel: 01905 727 907 

suzie@pw-media.co.uk 

Graphic Design 

Paul Blyth 

paul@pw-media.co.uk 

Unless otherwise indicated, views expressed are those of the editorial staff, contributors and correspondents. They are not necessarily the views of the RMI, its officers 

or councils. The publication of an advertisement does not imply that a product or service is recommended by the Federation. Material may only be reproduced by prior 

arrangement and with due acknowledgement to Automotive Insight. 


RMI | UPDATES 

RMI in Northern Ireland 

The new and used car market, market is functioning and how car 

MOTs, manufacturer/dealer 

sales, both new and used, compare 

relationships and the aftermarket, with other regions. 

were all topics of discussion at a “It was also extremely interesting 

dinner for members of the RMI in to hear, from Alan Nolan, Director 

Northern Ireland. 

General of the Society of the Irish 

The dinner, attended by 

Motor Industry, the overview of the 

representatives of franchised dealer Irish new and used vehicles markets.” 

groups, independent garages, 

Stuart James also gave an 

auction houses and vehicle repair overview on independent garage 

centres, took place at the Culloden numbers and technical training 

Hotel in Belfast. 

issues. 

RMI Director Sue Robinson 

The dinner was hosted by Sue 

said: “It is always valuable to visit Robinson, NFDA Director, and Stuart 

Northern Ireland and see how the James, IGA Director. n 

Time up for clockers 

Dealers are being urged to join consumers alike. We’re calling for a 

consumers in the battle against change to the law and dealers should 

clockers. The vehicle information be too. Our e-petition will give 

expert, HPI, is taking up the fight motorists and the motor industry a 

with an e-Petition to DirectGov to chance for their voice to be heard.” 

close down mileage correction firms. Dealers should conduct a 

NFDA has campaigned and mileage check as a matter of course, 

lobbied government the issue for but particularly on any car that has 

some time and urges dealers to had more than one owner. A full 

support this initiative. 

National Mileage Register (NMR) 

Right across the UK, these Investigation not only checks against 

companies are turning back the 150 million mileage records, but 

miles on used cars, helping certain also ensures previous keepers are 

sellers push up the price of vehicles. contacted to verify mileages at the 

It is a common problem, with one time they sold the vehicle. 

in 20 cars checked by HPI showing A mileage warranty is also included 

a discrepant mileage. This figure has as part of the investigation, so if the 

risen by 10% in the last five years. car turns out to be clocked, dealers will 

Dealers need to tackle the threat of be covered. By operating best practice, 

“clocking” head on, as they could find dealers can sell with confidence and 

themselves unwittingly part-exchanging meet their duty of care under the 

“clocked” vehicles and selling them on Consumer Protection Regulations. 

to customers, putting their businesses “HPI continues to raise awareness 

and reputations at risk, say HPI. 

of the threat of clocking and other 

“Dealers are well aware that used car fraud, but whilst mileage 

clocking itself isn’t illegal, but selling correction firms operate, fraudsters 

a clocked car without declaring its make easy money,” concludes Daniel 

true mileage is,” explains Daniel Burgess. “We are launching our 

Burgess, Managing Director for HPI. e-petition to fight back and make 

“Whilst there is rarely a legitimate the Government take action. The 

reason to alter the mileage on a Office of Fair Trading (OFT) has 

vehicle, Trading Standards estimates called upon the Government for 

there are 50 mileage correction reform twice before, but still there 

firms operating in Britain. 

are no signs of change.” n 

“Some of these companies will be 

exploiting a legal loophole that could • Visit http://epetitions.direct.gov. 

help unscrupulous sellers make a fast uk/petitions/40393 to sign the 

profit at the expense of dealers and e-petition 

Consumer Law Reform 

Programme affects all sectors 

The RMI Policy Department has to the third consultation paper, so as 

been heavily involved in the 

to best represent the interests and 

current reform package relating to needs of members. 

Consumer Law now being drafted So far we have responded to: 

by the Department for Business, • Consultation on Enhancing 

Innovation and Skills (BIS). In this Consumer Confidence by Clarifying 

article we bring members an update Consumer Law 

on the latest events and explain why • Consultation on the 

and how changes could affect you. Implementation of the Consumer 

Rights Directive 2011/83/EU 

The Programme 

BIS have been embarking on a process And we are in the process of 

of reform across Consumer Law. responding to: 

These reforms stem from the Retail • Civil Enforcement Remedies – 

Red Tape Challenge. The essence of Consultation on Extending the 

the reform package is to clarify and Range of Remedies Available to 

simplify consumer rights. The need for Public Enforcers of Consumer Law 

such reform is due to the piecemeal 

development of consumer legislation In addition to our submissions 

which has left the law in a dense, of the above (all submissions can 

unmanageable and confusing state. be found on the RMI lobbying page 

Key areas of Government concern are: on the RMI website), we have been 

• Sale of Goods Act 1979 

attending BIS conference discussions, 

• Limited Sales of Services Legislation sitting on discussion groups, voicing 

• Unfair Contract Terms Law (UCTA) our concerns and putting forward 

• Uneven enforcement 

our proposals. We are also awaiting 

• Weak redress for consumers the release of the fourth Consultation 

• Lack of guidance for trader from the package; Consultation on 

compliance and understanding Article 19 Consumer Rights Directive, 

• Excessive complexity 

Payment Surcharges. 

The objective of the reform 

package is to create a UK Consumer Only Rogue Traders need 

Bill of Rights. This Bill will aim to clarify fear changes 

and modernise legislation, especially So far, the RMI has endorsed the 

in relation to; the Sale of Goods and overall proposals put forward by BIS. 

Services, providing a general set of The majority of the reforms will cause 

Trading Standard investigatory practices concern only for rogue traders who 

and give wider Civil Court remedies for tarnish the industry’s reputation. 

breach of Consumer Law. 

Where the RMI have felt cause 

The Bill will also include 

for concern, we have responded 

numerous pieces of secondary thoroughly, stressing the importance 

legislation including the European of neutrality within any developed 

Consumer Rights Directive (CRD). legislation and emphasised the need for 

flexibility to account for complex and 

RMI members will be affected unforeseen circumstances, which are 

NFDA, IGA, PRA, NAB, NAMA and inevitable within any business practice. 

MRA members will all be affected The RMI has also stated its openness 

by any changes. These reforms will to working with BIS and expanding 

have an impact across the whole of further on any points or proposals made 

the retail sector. It will change the within our submissions. 

legal accountability of traders to If you have any questions or 

their customers and the obligations queries concerning any of the 

and commitments that traders will above, or you would simply like 

have to adhere to and comply with. more information, please contact 

Because of this the RMI Policy either louisewallis@rmif.co.uk or 

Department is currently responding caterina.recina@rmif.co.uk. n 


UPDATES | RMI 

RMI supports concern over new 

EU proposals on MOT testing 

Warnings that a European-style “one size fits 

all” MOT will not suit the UK have won the full 

backing of the RMI. 

The value of the European idea was 

questioned recently at the House of Commons 

where the European Scrutiny Committee was 

considering EU proposals relating to MOT testing. 

The Committee stated, after reviewing 

the proposed changes to the MOT test, that: 

“This House considers that the one size- fits all 

approach proposed by the Commission is neither 

justified at a supranational level nor appropriate 

to national circumstances of vehicle testing.” 

RMI Director Stuart James said: “The RMI 

supports the House of Commons European 

Scrutiny Committee’s comments concerning new 

EU proposals relating to MOT testing. 

“The current system of MOT testing in the UK 

has been shown to be an appropriate and cost 

effective means of preventing unsafe vehicles on 

the UK roads. The EU Roadworthiness Impact 

Assessment shows that the UK is already amongst 

the top 4 EU member states in regard to the 

lowest numbers of road fatalities related to 

vehicle defects.” 

“We do not wish to see additional expense 

and burden put on UK businesses or consumers 

to change a system that is already working well.” 

The RMI has submitted its initial concerns to 

the Department of Transport which will initially 

be discussing this regulation at EU level. Although 

currently these changes are only proposals and may 

not be in the final regulation, the EU commission 

has already submitted documents for tender that 

relate to a feasibility study on producing a Europe 

wide “Vehicle Information Platform.” 

The RMI is particularly concerned about 

the potential changes to testing equipment 

specification as this could seriously affect a large 

number of UK MOT stations. n 


The RMI plays an active role in Westminster, lobbying 

government all the way up to the highest level. Here 

we report on recent events in Parliament to bring 

you up-to-date with the headlines and with some of 

the background information vital to our industry. 

Motor Vehicle Numbers 

The numbers of registered cars, light goods and 

heavy goods vehicles in Great Britain as at 30 June 

2012 are: 

Cars 

28,710 million 

Light Goods Vehicles 3,283 million 

Heavy Goods Vehicles 466,000 

(These figures do not include Northern Ireland) 

Motor Vehicles Insurance 

The Transport Minister made the following 

statement on vehicle insurance; 

The Government are; 

(a) Working with the insurance industry to allow 

them access to DVLA driver details on penalty 

points and disqualifications to reduce fraud. 

(b) Tackling uninsured driving by the continuous 

insurance scheme (CIE). This was introduced last 

year and enables enforcement action to be taken 

against those who keep a vehicle without insurance. 

CIE reinforces police powers introduced in 2005 to 

seize uninsured vehicles being driven on the road. 

(c) The Ministry of Justice is to consult soon on ways to 

reduce the number, and the costs, of whiplash injury 

claims resulting from vehicle collisions. The consultation 

will focus on two main areas: the introduction of 

independent panels; and whether to amend the 

small claims threshold for damages for personal injury 

claims. This will reduce costs of defending such claims 

and encourage insurers to challenge exaggerated or 

fraudulent claims through the courts. 

(d) Additionally, there will be an opportunity for 

respondents to suggest other ideas on alternative 

ways forward. This will take the form of a full 

12-week consultation and we will be holding 

stakeholder sessions during the consultation period. 

(e) The insurance industry has agreed to fund 

(initially for three years) a specialist insurance fraud 

police unit, which went live in January 2012. The 

City of London’s Police National Fraud Intelligence 

Bureau will work with the industry’s Insurance 

Fraud Bureau. The unit will focus on enforcement 

and prevention strategies to tackle current fraud 

issues. The Association of British Insurers is setting 

up a National Insurance Fraud Register, a database 

enabling insurers to share information on known 

cheats. The scheme is now operational. 

Motorcycle Training 

The Compulsory Basic Training (CBT) Group has 

made the following safety recommendations in 

relation to improving CBT: 

a. align the existing CBT syllabus with the National 

Rider Training Standard; 

b. restructure the sequence of elements of CBT that 

must be completed, to enable greater flexibility in 

the way training is delivered and move towards a 

more client centred approach; 

c. consider removal of the entitlement to ride a 

geared motorcycle if CBT has been completed on 

an automatic motorcycle; 

d. align the qualification arrangements for CBT 

and Direct Access Scheme instructors with those of 

approved driving instructors; 

e. successful completion of the Driving Standards 

Agency (DSA) assessment course to become the 

only route by which instructors can be certified to 

deliver CBT; 

f. enhance the role of approved training bodies in 

assuring their instructors’ training standards. 

DSA continues to work with industry stakeholders 

to review and develop proposals. 

Electric and Hybrid Vehicles 

The number of licensed electric and hybrid vehicles 

as at 30 June 2012 is as follows; 

Electric Vehicles 71,830 

Hybrid Vehicles 114,904 

Driver and Vehicle Licensing Agency 

The DVLA has recently run a competition to procure 

a front office counter service provider for its faceto-face 

motoring services from next April. 

The Government has now announced that the 

DVLA will award Post Office Ltd a contract to build 

on the existing counter operation to provide a wider 

range of services and better accessibility for motorists. 

The contract will run for seven years with an option to 

extend for up to another three years. This contract will 

allow the Post Office to fully develop better services 

with the requirements of customers at the heart. Under 

the contract, Post Office Ltd will offer DVLA services at 

over 4,700 outlets for road tax and vehicle transactions, 

750 of which will also cater for driver licensing. 

The new contract provides value for money for 

the taxpayer resulting in savings of between £13 

million and £15 million a year. The contract also 

gives scope for the Post Office to provide front 

office counter services. 

Driving Eyesight 

The Department for Transport recently reiterated 

the law and policy on driving eyesight. 

Rule 92 of the Highway Code highlights that it is 

a statutory requirement to wear glasses or contact 

lenses while driving if you need them to read a 

number plate in good daylight from a distance of 

20 metres. A number of Driving Standards Agency 

publications also highlight the dangers of driving 

with poor eyesight. The police have the power to 

require a driver to undertake an eyesight test. 

Drivers must be able to read a number plate 

FOCUS | RMI 

WESTMINSTER REVIEW: NOVEMBER 2012 

from 20 metres with glasses or corrective lenses 

if necessary. They must also notify the Driver and 

Vehicle Licensing Agency if at any time they develop 

an eye condition that affects their visual acuity or 

field and provide assurance that they have never 

been advised that they cannot meet 6/12 measured 

on a Snellen eyesight chart. Drivers who fail to notify 

or who drive while unable to read a number plate 

from the appropriate distance are committing an 

offence and may invalidate their motor insurance. 

Red Diesel 

The Government estimate that the loss of tax revenue 

by the illicit use of red diesel in road transport was 

£150 million for the year 2010 – 2011. 

Heavy Goods Vehicles 

The Government has just published a consultation 

paper on Heavy Goods Vehicles which aims 

to examine whether the speed limit for heavy 

goods vehicles (HGVs) over 7.5 tonnes on single 

carriageways, is set at the right level. 

This follows a commitment published in “The 

Logistics Growth Review - Connecting People with 

Goods” document in November 2011. 

The current speed limit on single carriageways 

for HGVs over 7.5 tonnes is 40 mph. The speed 

limit for smaller HGVs (those between 3.5 tonnes 

and 7.5 tonnes) is 50 mph. 

Stakeholders have told the Government that the 

40 mph speed limit causes unnecessary costs to vehicle 

operators, congestion, avoidable overtaking collisions 

and creates an uneven playing field for businesses. 

Driving Disqualifications 

The total numbers of people disqualified by courts 

from driving in England and Wales for the past 

decade is shown below; 

2002 163,676 

2003 170,072 

2004 171,727 

2005 158,441 

2006 150,649 

2007 135,940 

2008 112,515 

2009 103,814 

2010 85,057 

2011 78,432 

Motor Vehicle Manufacturing 

The government has allocated £341 million to 50 

projects and programmes in the automotive sector 

from the three Regional Growth Fund bidding rounds. 

Road Transport Fuels 

The Energy Minister, John Hayes confirmed that he 

has asked his officials to consider the implications 

of ‘fuel deserts’ as part of the UK Petroleum retail 

market study and to revisit the crude price pass 

through analysis. n 



RMI | FEATURE 

RMI Chairman Alec Murray 

looks back over 2012 – and ahead to 2013 

The RMI is now better placed than ever to face coming challenges after a tough 12 months of 

difficult business and economic conditions. That was the key message from Chairman Alec Murray 

as he looked back over the year and forward to the challenges and opportunities of 2013. 

With greater freedom for each of the 

RMI’s member trade associations, 

Alec told members and guests at a 

glittering RMI annual dinner held at London’s 

Dorchester Hotel, that the RMI was now – with 

growing membership – strongly placed. 

New constitution 

He said: “Over the last 12 months the RMI 

has rewritten its constitution to follow a new 

direction. As a result, each Trade Association 

within the RMI Federation now has an even 

greater degree of autonomy. This in turn has 

allowed members’ views to be better represented 

and ensures that their concerns and their interests 

are voiced to Government across the relevant 

sectors. 

“Each Trade Association “fronts up” for its 

own members and every penny each Association 

raises is now spent on behalf of its members.” 

Alec said the great advantage of the reshaped 

RMI was that while individual Associations have 

the freedom to raise and spend money on behalf 

of their individual memberships as they see fit, 

they benefit from the huge array of shared “back 

office” services and administration work done by 

the RMI to share and reduce expenses. 

Membership on the rise 

He said: “Back office activities, corporate 

governance and control of the balance sheet, are 

handled by the Federation working to a mandate. 

This directs that no Trade Association spends 

more than it raises. 

“Since the new constitution was put in place, 

we have seen a 4% increase in members from 

January to September of 2012 and the total 

number of member sites in the UK now stands at 

more than 8,000.” 

NFDA 

Talking about the individual Associations, Alec 

said: “The main focus of the NFDA continues to 

be the possible adverse effects of the removal of 

the sector specific Block Exemption Regulation 

in 2013. The NFDA has attended a number of 

meetings with the European Commission in order 

to lobby for adequate regulation to ensure that 

franchised dealers get a fair deal. 

“NFDA has secured a good working 

relationship with the relevant departments in 

Brussels and also maintains a strong presence in 

Westminster, lobbying on these issues at the same 

time. A very constructive working relationship is 

also being maintained with car manufacturers via 

the Society of Motor Manufacturers and Traders. 

“Another point of concern for NFDA remains 

the merger of the insurance and finance industries 

under the new Financial Conduct Authority. 

The NFDA has been involved in discussions with 

representatives of the UK Government and the 

FSA to highlight our concerns regarding the 

proposed regulation. The NFDA will ensure that 

its members are kept aware of the changes. 

“Guidelines are also being agreed to help 

dealers to cope with the new requirements to 

disclose commission on finance following the new 

guidance from the Office of Fair Trading.” 

IGA 

In what has been a busy and very successful 

year for the IGA, Alec highlighted the many 

initiatives introduced to bring new benefits to IGA 

members: “The IGA has had great success this 

year, worked hard to analyse its sector, and has 

identified key areas of potential investment which 

can provide real benefits to independent garages. 

“A Technical Training Programme has 

been developed aimed at providing members 

with the expertise needed to cope with new 

electric vehicles and hybrids. This programme is 

unique and is the first in a series. Later training 

programmes are planned which will cover 

everything from tyre monitoring systems to 

diagnostics and other vital technical areas. 

“Another IGA initiative is aimed at providing 

websites – at no cost to members – which will 

ensure members are able to maximise their 

commercial opportunities and to expand their 

businesses. 

“These programmes are examples of the IGA’s 

commitment to providing its members with the 

commercial advantages needed in the current 

economic climate, and to secure a return on their 

investment in the Association. 

“The IGA continues to maintain an effective 

relationship with the Department for Transport 

and its association agencies, regarding any 

possible or proposed changes to the MOT testing 

regime. Negotiations have started with the DfT 

following a raft of proposals from Europe to 

significantly alter the testing regime. These EU 

proposals have limited support from member 

states so the IGA will continue to represent 

the interests of its members to the relevant 

Department officials who sit on the Working 

Groups in Europe. 

“The IGA is also continuing its high profile 

lobbying campaign calling for the release of 


FEATURE | RMI 

technical information from manufacturers, 

and remains committed to ensuring that 

manufacturers comply with the European 

legislation. In return, the IGA will ensure that its 

members use the more sensitive security elements 

of such information responsibly.” 

PRA 

For the PRA it has been a year of intense activity 

said Alec: “The PRA has once again led a 

number of successful campaigns. After a formal 

complaint by the PRA, the OFT launched a “Call 

for Information” into alleged anti-competitive 

pricing in the sector. This could now lead to a 

full inquiry into the fuel sector and the PRA has 

been instrumental in securing this inquiry and in 

lobbying members to submit their evidence. 

“The PRA also won substantial media coverage 

in August with the launch of the Fuel Tax Stand, 

a joint initiative with the Taxpayers’ Alliance. 

This was to highlight the fact that more than 

60% of the petrol pump price goes directly to 

the Treasury. The PRA is continuing to press the 

Government to freeze the further planned duty 

hikes, as well as to change the point of Duty 

to ensure a fairer deal for its members. Robert 

Halfon MP and his researcher Paul Abbott have 

worked hard in securing cross-Party debates in 

the House of Commons on this issue. 

“The PRA also remains engaged with the 

Department of Energy and Climate Change on 

strategy to address the UK’s retail fuel resilience, 

after severe fuel shortcomings were exposed by 

the panic buying in March. 

“Given the difficult trading conditions that 

affect the independent fuel retail sector, the PRA 

is able to provide robust advice on what action 

can be taken by Government to ensure that the 

decline in the number of forecourts is stemmed.” 

NAMA, NAB, MRA 

Moving on to NAMA Alec said: “In addition to 

launching its Code of Practice, to which all its 

members must commit when joining, NAMA 

launched its own report on Used Car Data which 

is gaining considerable credibility within the 

industry. 

“NAB continued to be a proactive organisation 

throughout the year, particularly with regards 

to the OFT inquiry into motor insurance, which 

has now been referred to the Competition 

Commission. NAB continues to maintain contact 

with the OFT and to submit evidence to the 

inquiry to enable the OFT to obtain a better 

understanding of the marketplace. 

“The market remain challenging for 

motorcycle retailers with sales remaining flat. 

The MRA will be launching a new and exciting 

campaign at the motorcycle dealers’ conference 

and the MRA is confident it can materially help 

the motorcycle industry and plans to take a much 

higher profile in 2013.” 

Looking to the future 

For 2013, for the individual, autonomous 

Associations, and for the RMI as a whole, Alec 

said: “We can only continue to be a successful 

trade body with the support of our staff and 

at the end of a challenging year I would like to 

acknowledge the commitment and effort shown 

by those at our organisation. 

“Their willingness and tenacity is the reason 

for the continued achievements of the Federation. 

My first 12 months as Chairman have not been 

without their challenges but I look forward to 

continuing to work with all those involved with 

the RMI in order to achieve what its members 

deserve. 

“The Federation is financially strong, and the 

objective is to continue to manage RMI resources 

will in future years.” n 

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non-FSA registered dealers. Contact us now! 


RMI | FEATURE 

T 

o find out exactly what all of this means 

for our members, the RMI sought 

clarification from Pensions Minister 

Steve Webb and from Bill Galvin, Chief Executive 

of the Pensions Regulator. 

The Pensions Minister told Automotive Insight: 

“Larger employers will be phased into the scheme 

first, followed by smaller employers over the 

next two to three years. This is so as to avoid any 

possible distortion to the pensions market. 

“The individual pension fund moves with the 

employee, which is unlike other pension funds, 

but this will need to be regulated by legislation 

that is not yet drafted. However, there is no autoenrolment 

for those who are self-employed.” 

Bill Galvin, Chief Executive of the Pensions 

Regulator, said that the Government, in laying out 

the workplace pensions scheme, was keen to ease 

concerns. He said: “The research suggests that 

the two main employer concerns are choosing a 

pension scheme, and guiding employees on what 

they can and can’t do. 

“It will take around 18 months for employers 

to prepare for auto enrolment and to go through 

the administrative changes, choosing a scheme, 

and so forth. 

“A Code of Practice will be put in place in 

approximately six months for employers to sign up to. 

Compliance may require external verification by an 

intermediary such as an independent financial adviser, 

which will represent an additional cost to employers.” 

Employers who do not follow the law, or who 

are wilfully non-compliant, face heavy penalties 

as failure to comply may result in £400 fixed 

penalties if “staging dates” – the dates by which 

employers must take action - are missed. 

March 2014 is the staging date for medium 

sized employees with up to 250 employees, and 

the staging date for small employers with up to 

50 employees is July 2015. 

This is clearly a complex piece of legislation and 

detailed information is available at http://www. 

thepensionsregulator.gov.uk which pinpoints seven 

key stages to implementing the process: 

Automatic Pension enrolment 

Act now 

Workplace pensions law has changed. Every employer, including those throughout the motor 

industry, faces new legal duties to help their workers save for retirement. They must automatically 

enrol certain workers into a qualifying workplace pension scheme and make contributions 

towards it. These duties are being staged in over six years, starting with large employers. 

Seven steps to prepare for 

automatic enrolment 

1. Know your staging date - when to act 

Your staging date is determined by the total 

number of persons in your largest PAYE scheme, 

based on information from HMRC at 1 April 

2012. You can find out your likely staging date 

at www.thepensionsregulator.gov.uk/employers/ 

staging-date-timeline. 

2. Assess your workforce 

You will need to identify any eligible jobholders 

working for you. In addition to eligible jobholders, 

there are other types of worker: 

• Non-eligible jobholder 

• Entitled worker 

You will need to identify whether you have such 

workers. If you do, you will have employer duties 

in relation to them. 

3. Review your pension arrangements 

You might have an existing scheme that you can 

use or adapt for automatic enrolment, or you may 

need to set up a new one. It is important that 

the pension scheme you choose will deliver good 

outcomes for your workers’ retirement savings. 

4. Tell your workers about the pension changes 

Employers are required by law to write to all 

workers (except those aged under 16, or 75 and 

over) explaining what automatic enrolment into 

a workplace pension means for them. There 

are different information requirements for each 

category of worker. 

5. Automatically enrol your ‘eligible jobholders’ 

There is clear information available on the The 

Pensions Regulator website which will take you 

step by step through 

• The automatic enrolment process 

• The information you must provide to the person 

you will be enrolling and to the scheme you are 

enrolling them into 

• When to automatically enrol 

• Ongoing responsibilities once automatic 

enrolment is completed. 

Workers who have been automatically enrolled 

have the right to ‘opt out’ of pension saving. This 

guidance explains how to process opt-outs from 

workers who want to leave a scheme, and gives 

information about the rights of workers to join a 

pension scheme outside of automatic enrolment 

and what you will need to tell them. 

6. Register with The Pensions Regulator 

and keep records 

You are required to register with The Pensions 

Regulator shortly after your staging date. 

Registration will be a straightforward process that 

you can complete online. 

7. Contribute to your workers’ pensions 

You will be required to make ongoing 

contributions to your workers’ pension schemes. 

The minimum contribution amounts are set out 

in law. n 

• Visit www.thepensionsregulator.gov.uk for more 

information and for useful downloads of leaflets 

and guides 


ADVERTORIAL | RMI 

Banner IS THE RELIABLE PARTNER OF LEADING 

AUTO MOTIVE MANUFACTURERS. 


RMI | FOCUS 

Making your voice heard in 

the corridors of power 

As the party political conference season grabbed the nation’s headlines and hours of TV 

and radio news, the RMI was at the heart of things, lobbying on behalf of our members, 

and ensuring that those who run the country know of your concerns and worries. 

Brighton and the Lib Dems 

The conference season got under way in 

Brighton with the Liberal Democrats. While 

delegate numbers at the conference were 

down on previous years, RMI Director Sue 

Robinson and Communications and Policy 

Officer Roz Collings secured meetings with 

Parliamentarians and attended a number of 

useful events. 

The day started with an early breakfast 

roundtable hosted by the Finance and 

Leasing Association to discuss the new 

merger of finance and insurance under the 

new Financial Conduct Authority. Various 

potential problems with the merger were 

identified by stakeholders during the 

discussion. The RMI is maintaining close 

links with the Department for Business, 

Innovation and Skills (BIS), and with the 

Financial Services Authority, to inform them 

of how proposals will work in practice. 

Baroness Scott, a former Liberal 

Democrat Party President, was briefed 

on issues facing the RMI, with particular 

attention paid to the issue of collective 

redress, which is awaiting formal response 

after two separate consultations in UK 

and in Europe. The member of the House 

of Lords asked to be kept briefed on the 

outcome of the proposals. 

Mark Williams, MP for Ceredigion, was 

later briefed on the automotive industry 

in Wales, including issues affecting 

businesses in the automotive retail sector 

and particularly on the plight of petrol 

forecourts in his constituency, which is 

predominantly rural. He is keen to be kept 

informed of the OFT call for information 

regarding the petrol sector. 

Finally, a fringe event attended by 

Department for Transport Minister 

Norman Baker provided a discussion on 

the implementation of greener transport, 

including electric vehicles. Mr Baker has 

biofuels in his portfolio and is committed to 

reducing emissions and developing green 

transport. 

Labour 

A huge number of meetings covering a 

wide range of topics were scheduled for 

the Labour conference, which Sue Robinson 

and IGA Director Stuart James attended. 

Stuart had an informed discussion with 

Baroness Smith of Basildon on the impact 

of new legislation in Northern Ireland for 

the operators of Small Waste Oil Burners 

(SWOBs), and how the new regulation 

affects garages countrywide. Baroness Smith 

is keen to remain briefed on the issues. 

John Cryer, Treasury Select Committee 

member, was briefed by Robin Hulf, the RMI’s 

external lobbyist, on fiscal issues affecting 

the motor industry and we will be keeping 

Mr Cryer updated about your concerns. 

Andrew Miller and Richard Burden are 

members of the All Party Parliamentary 

Motor Group, and both were briefed on the 

state of the motor industry generally. Both 

are supporters of our industry and remain 

supportive of the sector so we remain keen 

to maintain a good working relationship 

with them. 

Sue and Stuart held a particularly useful 

meeting with Cathy Jamieson, Shadow 

Economic Secretary, who was briefed on 

fiscal issues. Ms Jamieson was particularly 

keen to remain updated on fuel tax and 

will be sent briefing notes from the PRA on 

its current and ongoing campaigns. 

The Rt Hon Lindsay Hoyle, Deputy Speaker 

of the House of Commons, joined Sue and 

Stuart for a meeting, at which he promised 

to show support on issues that we raised. Chi 

Onwurah, Shadow BIS Minister was able to 

hold a short meeting, and we look forward 

to meeting her again back in Westminster for 

more comprehensive discussions. 

Conservatives 

The day started for Sue Robinson with a 

Finance and Leasing Association breakfast 

roundtable. This provided another opportunity 

to discuss concerns relating to the new 

insurance and finance regime coming into 

place under the Financial Conduct Authority 

(FCA). The roundtable was attended by a 

number of chief executives of companies most 

likely to be affected by the changes. 

Following on from the breakfast, Sue 

attended an SMMT event, attended by 

Gavin Williamson MP who is currently 

serving as Personal Private Secretary 

(PPS) to Patrick McLoughlin, Secretary 

of State for transport. The lunch was an 

opportunity to discuss initiatives aimed at 

driving industrial growth in the automotive 

industry with our partners across the sector. 

Sue Robinson and Stuart James then 

briefed a number of Parliamentarians 

including Stephen Hammond, Minister at 

the Department of Transport, with whom 

Sue and Stuart will see for a longer meeting 

at Westminster. Our external lobbyist Robin 

Hulf gave a briefing to the new Secretary 

of State for transport, Patrick McLoughlin, 

in order to talk him through the work of 

the RMI, as well as to Michael Fallon, BIS 

Minister responsible for Enterprise. 

A longer chat was held with Dominic 

Grieve QC, the Attorney General, who was 

keen to discuss collective redress in the UK 

and the release of technical information 

by manufacturers. Robin Hulf also met 

John Hayes, the new Energy Minister at 

the Department for the Environment and 

Climate Change, who is keen to meet Brian 

Madderson, Chairman of the PRA, in the 

near future. Finally, Malcolm Harbour MEP, 

with whom the RMI has a good working 

relationship, was briefed on technical 

information and updated on the state of 

the automotive retail sector. 

In between the above events and 

meetings, the pair found time to attend 

two fringe events on sustainable transport 

and the single market. 

It was a busy, hectic and tiring round of 

conferences, but once again, the RMI made 

sure that its voice, and the voice off all its 

members from all its associations, was heard 

in the very highest corridors of power. n 



RMI | FEATURE 

Rory Bremner 

RMI’s annual dinner star turn 

TV comic and impressionist Rory Bremner was the star turn at this year’s RMI annual dinner, held 

at the Dorchester Hotel in London’s Park Lane. Editor, TV pundit and political correspondent 

Andrew Neil was also there as guest speaker to give his probing and entertaining view of life. 

A 

t the RMI black tie event, Chairman 

Alec Murray welcomed around 300 

members, guests and friends, telling 

them: “This event enables us to look back at a 

challenging period for the UK motor industry and 

to look forward to what lies ahead. 

“Over the last 12 months the RMI has 

followed a new direction where by each 

association within the Federation has a greater 

degree of autonomy. This has allowed us to 

achieve our aims of ensuring our members’ views 

are represented and that their concerns and 

interest are voiced to government and across the 

relevant sectors.” 

Sponsors make it happen 

The event was a resounding success, in large 

part thanks to the efforts of the key dinner 

sponsors, including: Platinum Sponsor Supagard; 

Gold Sponsors AON, Visa and WashTec; and 

Silver Sponsors Alphabet (the leading fleet 

management and leasing company), BP, Global 4 

Communications, Greenergy, The Jordon Group, 

Tokheim and Warranty Direct, Motor Industry 

Legal Services,and RMI Insurance Services. 

Platinum Sponsor Supagard are celebrating 25 

years in 2013 as the UK’s number one supplier 

of paint and fabric protection. Their mobile 

technicians can reach any area of the country and 

their state of the art technology is approved by 

approved by most leading car manufacturers. The 

comprehensive range includes paint, vinyl, fabric 

and leather protection, along with a key recovery 

service and security marking. 

Supagard Head of Sales and Marketing, Nock 

Horton, said: “Our products offer world class 

protection and value to both new and used car 

customers through a massive network of dealers 

across the country. We believe that it’s the quality 

of our products and the long lasting protection 

they give that keeps over two million happy 

customers asking for Supagard every time they 

change their car. “ 

Supagard treatments are used and approved 

by vehicle manufacturers and car dealers 

world wide and our products are classed as 

Recommended Supplier Branded Accessories for 

Alfa Romeo Chevrolet, Chrysler, Citroen, Fiat, 

Ford, Hyundai, Jaguar, Kia, Land Rover, Lexus, 

Mazda, Mercedes, Mitsubishi, Nissan, Peugeot, 

Saab, Suzuki, Toyota, Vauxhall and Volvo. 

Gold sponsors AON, global provider of 

insurance, reinsurance and risk management, were 

also glad to be associated with the RMI and its 

members. A spokesman said: “We were very glad to 

sponsor this prestigious event. It was a thoroughly 

enjoyable evening for AON and their guests.” 

Gold Sponsors WashTec are the largest car 

wash manufacturers in the world and are looking 

forward to 2013 with a range of ever-improving 

technologies, including increasing the number of 

UK machines offering the latest ShineTec chemical 

treatment. This restores vehicle paintwork to its 

original high gloss finish. It involves an acrylicbased 

polish which fills in the microscopic divots 

that are the result of everyday wear and tear. 

The base is totally transparent, very hardwearing 

and lasts up to three washes, revealing a 

highly reflective shine and building up through 

subsequent washes to give even more protection. 

Managing Director Michael Harris said: “The 

effect is dramatic! Cars really do sparkle. This is 

just one of the ways in which WashTec is moving 

forward. We have developed intelligently applied 

chemicals, which eat into the dirt but do no 

harm to the paintwork. We are also looking at 

improved wheel washes and we are changing 

the dimensions of our machines to accommodate 

bigger and wider vehicles. We are making the 

maintenance of the machine itself much easier, by 

bringing in cartridge chemical refills. It’s all about 

keeping our place at the forefront of vehicle wash 

technology. Our aim is always to find new ways to 

improve our service to the customer.” n 



IGA | UPDATES 

IGA builds and builds through 

2012 for a bright new future 


IGA 

16 

IGA builds for a bright 

new future 

17 

New Online 

Technical Forum 

Stuart James 

IGA Director 

Tel: 07528 977 167 

stuart.james@rmif.co.uk 

20 

Diagnostics - constantly 

evolving sector 

30 

TMG builds to offer the 

best service possible 

34 

Simmo’s Solutions; your 

problem, our answers 

A hugely successful but hectically busy year 

for the IGA has seen a raft of changes and 

the launch of several major new initiatives 

aimed at ensuring members’ businesses can 

run more effectively, more efficiently and 

more profitably. 

At the same time the IGA has been 

lobbying at the various levels on behalf of 

its members to ensure that the Government, 

Europe, and of course vehicle manufacturers, 

know exactly what you think and what you 

need, in order to survive and thrive in these 

tough economic times. 

CONSTITUTION 

The year started with a total change in the 

constitution of the RMI which ensured that 

the IGA now has total autonomy. While 

guaranteeing IGA independence to act as 

it sees best on behalf of its members, the 

changes mean that back-office operations, 

administration and the like, are run more 

efficiently so that IGA funds can be targeted 

more effectively and more accurately. 

Without knowing what our members 

want though the IGA cannot go in the right 

direction on your behalf, which is why 2012 

has been a year of constant communication. 

We have been busier and more proactive 

than ever, talking to all of our members by 

telephone, seeing as many of you as possible 

in person and emailing/writing to you. Our 

aim has been to find out exactly what you 

are worried about, which issues you want 

flagged up to those in power and how we 

can help you - specifically through initiatives 

such as training. 

ACTION NOT WORDS 

The year has not just been one long talking 

shop though. Where you have talked, and 

made suggestions, we have listened and 

taken action. 

The results speak for themselves. The 

IGA has this year launched its own unique 

technical training programme aimed at 

bringing the very latest, cutting edge training 

to your workshops. The goal is to offer on-site 

training, so that your technicians can upskill 

without having to spend hours travelling 

back and forth to colleges or training centres. 

The first training programme, which focuses 

on electric and hybrid vehicles, has been 

incredibly well received and that is just the 

start. New training programmes are in the 

pipeline and will start to roll out soon. 

ONLINE MEANS ON MESSAGE 

Another initiative that grew out of our 

ongoing research has been the launch of 

new, free, bespoke websites for members, 

tailored to your services, and ensuring that 

you can now market your products and 

business via the internet. 

Any garage without its own website is 

missing out massively. Motorists no longer 

look through a telephone directory to find 

their nearest garage. Instead such shopping 

is all done online and if you are not online 

then you are missing out and are invisible to 

would-be customers. 

The IGA website service to members 

makes sure that you can have the highest 

possible profile among potential clients, 

strengthen your profile among existing 

customers, make your business easy to find, 

and ensure your marketing reaches the 

audience you need. 

MAKING YOUR VOICE HEARD 

On top of which 2012 has seen the IGA work 

closely with the Department for Transport 

ensuring your views – such as concerns over 

the possibility of 4-2-2 MOTs – have been 

heard at the highest possible level. The IGA 

has been active in Europe also, arguing and 

lobbying on your behalf, and with relation to 

the need for vehicle manufacturer technical 

information to be made readily available to 

independent garages. 

The IGA is now more member focused 

than ever. We are taking the time to listen 

carefully, and then acting on what we hear 

to ensure the services and products we offer 

are specifically tailored to your needs. 

This year has seen IGA members, like 

never before, tell us precisely the sort of 

support and help you need, ensuring you 

play a more active role in making the IGA 

the association you want it to be. n 


UPDATES | IGA 

Top Technician 2013 – 

Help for independent garages faced 

£10,000 up for grabs 

with a baffling automotive issue or a 

With the independent sector 

boasting some of the best 

technicians in the country, IGA 

members can show just good they 

are by taking part in Top Technician 

2013. 

This is the perfect opportunity 

for independent garages and 

technicians to showcase their 

talent. It gives IGA members the 

ideal opportunity to show to their 

customers and the wider public just 

how skilled independent garages are 

when it comes to working on some 

of the newest, most sophisticated 

and complex cars on our roads. 

Top Technician champions 

the best repairers in the United 

Kingdom, whether they work 

in an independent workshop, 

a dealership, or as a mobile 

technician. Prizes on offer total well 

over £10,000 and the competition 

brings real benefits for everybody 

who enters thanks to the support of 

the Institute of the Motor Industry 

(IMI), and blue chip sponsors. 

Member benefits 

Every technician who signs up 

at www.toptechnician.co.uk will 

receive: 

• Free and exclusive access to the 

Top Technician Forum for advice 

about repairs 

• A subsidised ticket to Top 

Technician Live, a full day of 

technical seminars and repair advice 

at Mercedes-Benz World 

• A regular e-bulletin filled with the 

latest product information, repair 

advice and technical articles 

The winner of Top Technician 

will be announced at Top Technician 

Live 2013. This event will bring 

together the best technician trainers 

in the industry. Information and 

intelligence on the latest vehicle 

technologies will be presented by 

independent experts including James 

Dillon of Technical Topics, Frank 

Massey of ADS, Autologic’s Brian 

Chaffe and professional trainers 

from ‘Top Technician 2013’ sponsors 

Blue Print, Delphi, Gates, KYB, Snapon 

and Valeo. 

If you attend you will catch up on 

most current technical information 

to keep you on top of your game, 

and to keep your business at the 

leading edge of vehicle servicing 

and repair. Delegates will be able 

to network with fellow technicians 

and major players in the aftermarket 

over an extended lunch break and 

will take away a comprehensive 

delegate pack of information. 

The day will end on a high with 

the announcement of the winner 

and awards presentation to the Top 

Technician 2013. Tickets are being 

subsidised by ‘Aftermarket’ and 

Top Technician sponsors and cost 

£82 + VAT which includes parking, 

refreshments, lunch and full delegate 

pack. Top Technician 2013 entrants 

can purchase tickets at a 30% 

discounted rate of just £62+ VAT. 

• Purchase tickets at http://www. 

toptechnician.co.uk/webcontent/ 

top-technician-live/ using PayPal. 

Alternatively, email Nicola@ 

aftermarket.co.uk if you would 

prefer to send a cheque. 

A problem shared is a problem halved – 

with our Online Technical Forum 

challenging technical problem is now 

being developed to put time and money 

saving solutions at your fingertips. 

We are developing an Online 

Technical Forum which will be open 

to all members. It will provide with 

a platform to ask questions and 

receive answers from colleagues 

around the country who may have 

faced similar issues. 

The forum will make use of the 

most powerful information technologies 

at our disposal to share knowledge 

and expertise, and to provide cutting 

edge solutions to problems that might 

otherwise stump members. 

Many independents already harness 

the power of the internet for technical 

information – indeed the majority of 

manufacturer information is delivered 

online these days and the Online 

Technical Forum plans to build on that. 

But information alone is not 

enough to solve some vehicle 

problems without the right insight 

and advice. The IGA’s new solution 

will open up a brand new channel 

of technical information accessible 

easily and quickly to all members. 

Sub-forums will cover all the technical 

issues faced by independent garages 

today. The Forum will evolve to respond 

to the specific needs of independents 

faster than any other form of technical 

information. Its real strength though 

will lie in the collected knowledge, 

experience – and wisdom - of our 

members working together to share that 

knowledge so we can all benefit. 

Keep an eye on the IGA bulletin 

and the next issue of Automotive 

Insight for further information. We’ll 

be launching the Online Technical 

Forum in the New Year and will be 

recruiting “beta testers” to get the 

forum up and running. n 


IGA | FEATURE 

How to win 

MOT peace of mind 

Even the best-run MOT operation worries whether absolutely everything they do is “VOSA proof.” 

To help members the RMI offers its own MOTQC “health check” scheme. Here Stephen Coles, RMI 

Head of MOT Technical Operations, explains how the process works to benefit RMI members, save 

them money, and prevent problems with VOSA before they can happen. 

U 

nder the RMI scheme a member of 

our MOT Operations Team visit you to 

carry out a health check or audit, to 

ensure all aspects of your operation are up to the 

standards required by VOSA. 

Obviously, while we are always happy to help 

our members with any problems they might have 

with VOSA, ideally we would prefer it if you do 

not have problems with VOSA in the first place. 

Our advice is confidential, just for your use. Our 

visits and quality control checks cover everything 

to do with your MOT operation and everything 

that a VOSA visit might be interested in. This 

might include key areas such as: 

Exhaust Gas Analyser 

Daily Leak Test 

All petrol EGAs have some type of sealing device. 

This ensures the whole system can be sealed to 

pass the daily leak test. We normally check to see 

if this dedicated device/plug is still available. If 

not, the NT is normally questioned as to how the 

test is passed. For example, are they using some 

other method, maybe crimping the sample tube? 

The concern is that if the correct sealing device is 

not used then the entire length of the tube, and 

the end of the sample pipe, is not leak-tested. 

We have seen 20 disciplinary points contemplated 

should this be the case. 

Paper manuals 

Some test stations seem reluctant to throw away 

their paper MOT Inspection Manuals and Testing 

Guides. However, these are no longer updated by 

VOSA and should not be made available to the 

NT and AEs. If these paper guides are referred to, 

an accusation could be made that out-of-date - 

and hence inaccurate - information is being used 

for testing purposes. If these paper versions are 

disposed off then they can’t be used. The AE and NT 

will still have access though to all the information 

they need using the VTS device as an up-to-date 

source. Don’t forget that should the VTS device not 

be available for some reason, the guide and manual 

are available online and can be downloaded to a 

separate computer as a further safeguard. If you 

download the manuals however, these downloaded 

versions should be deleted and a new copy 

downloaded every time a special notice makes you 

aware of changes to the guide or manual. Be aware 

that the VTS User Device Guide, although available 

via the VTS device, is not accessible online. 

Gas leak detector spray 

Special notice 1-2011 gave notice that the VTS 

needed to have available, from January 2012, a 

can of gas leak detector spray. It is a requirement 

to have this available (and used if necessary) now. 

We have seen, despite a softly-softly disciplinary 

promise from VOSA for new test items, 20 

disciplinary points being allocated should the site 

not have this spray available. 

You should also ensure that your spray meets BS 

EN 14291:2004 approval. When we asked VOSA 

whether they would accept the DIN standard spray 

they replied that they would expect the AE to supply 

evidence that it was the exact same standard. In reality 

it is best to get another can with the BS marking. 

Blank fallback documents 

Now we are using plain paper certificates, the VTS 

can no longer use the old coloured certificates to 

hand-write Fallback Testing documentation should 

the VTS device not function. VOSA request that 

blank certificates are printed (enough for three 

days testing) for this eventuality. Whilst most sites 

have done this, it is still a common occurrence 

to find sites that haven’t. Don’t forget that if any 

forms are updated, like the VT20 recently, then 

you need to update your retained certificates. 

Datum lines for 

headlamp aim tester 

A requirement for authorisation is that a datum 

line (or lines) at the headlamp aim tester focal 

length is provided. These deteriorate over time 

and we commonly spot lines that need refreshing 

or re-applying. 

Tyre tread depth gauge 

six monthly check 

There is still a requirement to check, at least every six 

months, that your dedicated MOT tyre tread depth 

gauge is still accurate and for you to keep a written 

record. A reminder should be made separately of 

the date this next needs to be done as you will get 

no other reminder. RMI members can contact us to 

obtain a record sheet for this purpose. 

13pin trailer socket test tool 

All sites we visit now have this tool but not 

all of the tools are supplied with a Certificate 

of Acceptance. This Certificate does not need 

to be sent to VOSA but it should be available. 

If you don’t have the required certificate, ask 

your supplier for one and keep it filed in your in 

calibration certificate file. 

QC records 

We would advise that the QC record, recorded 

on the VTS device, gives good detail on any 

advice given after the test by the QC tester. Most 

importantly, details of what follow-up actions 

taken to ensure that future checks are to the 

standard required, should be detailed. We have 

found that VOSA tend to dismiss a record where 

every test checked is marked as “Satisfactory” – 

but which has no notes made - as not reliable. 

Notice board 

The MOT Notice Board should be used solely for 

VOSA approved documentation. Some VEs take 

exception if anything non VOSA is displayed on it 

(for example Insurance Certificates.) This extends 

to older (Vehicle Inspectorate information and 

posters, and some VEs ask for this to be removed 

or updated. 

• Any RMI member who would like advice on any 

aspect of the MOT, or information on our MOTQC 

scheme - with optional MOT risk assessment - can 

contact our dedicated MOT Operations team on 

0845 305 4234 or via e-mail mot@rmif.co.uk 


FEATURE | IGA 


IGA | FOCUS 

Diagnostics 

Diagnostics play a vital part in the life of any garage, and it is a technology that is reaching into 

more and more areas of the workshop. In this feature we look at some of the major players to see 

how they feel about the market, and what sort of products they are bringing into that market. 

C 

live Brown, Sales and Marketing 

Director at Premier Diagnostics Ltd. UK 

says: “This year has been a good one 

for us as it has seen us become Number Two in 

the sector in the UK, so we are now officially one 

of the “big boys”. 

“We will be launching a new range of air 

conditioning units early in 2013, and had a very 

good 2012. A major part of that success has been 

in establishing ourselves as an exporting company 

into Europe, and we have also appointed a new 

Operations Manager, Andrew Head. 

“On top of that I am very happy to say we 

have got a new apprentice starting and we now 

have a workforce of 33 and are looking to grow 

still further.” 

One vital element in the success of Premier 

Diagnostics is the value they place on experience 

says Clive: “We are just celebrating one of our 

senior salesmen turning 71 and across the 

company we have a wealth of experience. So 

all round the company is going well and it’s an 

exciting time for us. 

“Having said all of that the UK market did slow 

up for a while but Premier Diagnostics has pretty 

much weathered the storm. Our sales are ahead 

of plan and some of that has been helped by >> 


Elite Combi Pc Based 

Emission Tester 

• Simple and fast to use 

• Cable-less Smokehead as standard 

• Automotic calibration 

• VOSA approved 2008 class 4, 7, 

HGV, PSV, RPC & SVA 

DS2 Totally Cable-Less Range 

of Smokemeters 

• Simple and fast to use 

• Ideal for any diesel testing 

requirements 

• Portable version available for 

road side and fleet testing 

• VOSA approved 2008 class 4, 7, 

HGV, PSV, RPC & SVA 


IGA | FOCUS 

our exports and we are looking to extend that. 

‘We are taking on new people and are looking 

for younger service engineers who we plan to 

locate in various parts of the country.” Clive 

stresses that he does all his own recruiting. 

With their equipment selling well into the 

MOT trade, and as major suppliers into the truck 

and bus market, Clive Brown feels the company 

is well placed going forward, but has to admit 

he breathed a sigh of relief when debate about 

a possible introduction of a European style 4-2-2 

MOT went away: “The idea of what 4-2-2 might 

have done to the market was not a pleasant one. 

Now with the security of 3-1-1 it seems garages 

have the confidence to buy MOT equipment 

without the threat of 4-2-2 hanging over their 

shoulders.” 

AUTOLOGIC DIAGNOSTICS 

Autologic Diagnostics, manufacturers of the OE 

level diagnostic tool the Autologic, have recently 

added full diagnostic coverage for the Mercedes- 

Benz ML166 chassis as well as software for the 

Porsche 911 model. 

With almost 100 possible control modules, 

the Autologic Mercedes-Benz ML166 software 

has been thoroughly developed and beta tested 

over the past eight months. Flash programming 

is available on request plus the new software also 

offers reading and clearing of fault codes, reading 

of live data, actuations, adaptations and full initial 

start-up when replacing ECUs. The new Autologic 

Mercedes-Benz ML166 software is also included 

in the Autologic Mercedes-Benz 4x4 module, 

which can be purchased independently outside of 

each brand’s main software package. 

Similarly the new Autologic Porsche 911 

software includes fault reading, live data and 

activations with select special functions and 

programming also included. 

Upon their release, downloads for both brand 

software updates became immediately available 

from the dedicated User Area of Autologic. 

com for all Autologic users with a valid technical 

support contract. 

AUTOHEAT 

A brand new British built product is set to 

revolutionise the way everyday tasks are 

undertaken in the workshop 

The UK designed and manufactured Autoheat 

C1250 removes stubborn nuts, bolts, bonding, 

exterior trim, vinyl graphics, glass trim and much 

more without damage and without the risk of 

using an open flame. 

The Autoheat C1250 uses induction 

technology to create flameless heat. This 

accurately concentrates the heat into the area 

being worked on, only affecting the metal or 

treated plastics. The key benefit of this is that 

it minimises the risk of collateral damage and 

reduces cool off periods, saving the workshop 

time and money. Autoheat Technical Director Gary 

Milton said: “It is an invaluable tool for working 

with easily damaged components, such as body 

trim and windscreen surrounds. The magnetic 

field passes through non-metals, like glass and 


FOCUS | IGA 

trim, and heats the metal underneath.” 

“It can be used on nuts and bolts, steering and 

suspension, exhaust clamps, track rod ends and 

in many other areas. It enables engineers to free 

wheel nuts, carry out repairs to body trims and 

windscreen surrounds, in fact do anything that 

would usually require a blowtorch or similar flame 

but crucially with this tool they can do all of that 

without any risk of damage.” 

Managing Director Andrew Dimond said: “This 

is a brand new product which has come to the 

market this year. We are extremely proud of the 

Autoheat C1250 because it was designed and 

built by us in this country from the ground up. 

The technology is all our own. There is no other 


IGA | FOCUS 

product like it, yet it is extremely simple and safe 

to use.” 

The Autoheat C1250 runs on 230 volts so it 

can be plugged straight into the wall, meaning 

there is no need for transformers. It is faster, 

smaller, more precise and cheaper than an 

oxy-acetylene torch system. Other advantages 

include different coil types to help it reach difficult 

to access areas, no need for specialist training 

because it is incredibly simple to use and an 

ergonomically-designed pistol grip handle to 

make it comfortable to hold. The extra bright LED 

mounted at the business end helps illuminate the 

work area. 

“Our order books are already filling up as 

customers get word of this latest technology,” 

said Andrew Dimond. “Time is money. The 

Autoheat C1250 saves you both.” 

TEXA 

From TEXA meanwhile comes the new small, 

yet powerful NanoDiag device. The unit powers 

from the diagnostic socket and uses a Bluetooth 

connection to a Windows PC, removing any 

connecting cable problems. Specifically designed 

to make its operation as easy as possible for 

technicians, the NanoDiag’s IDC4 software 

allows access via the NanoDiag for a full range of 

diagnostic functions including service and system 

resets; read and erase system errors; system 

parameters; global scan; configurations for setting 

and adjustments. 

The NanoDiag can also be used on pre-OBD 

vehicles with specific adapters, and is combined 

with the new release of the IDC4 Basic operating 

software from TEXA. As an optional extra the 

NanoDiag can be upgraded to IDC4 Plus software 

which contains additional wiring diagrams, 

technical bulletins and technical information. 

The NanoDiag operates in conjunction with 

IDC4 software, so that the TEXA operating 

platform combines diagnosis potential with a 

database of supporting information. The device 

gives the technician a whole range of additional 

information to enable fast, accurate work, 

including wiring diagrams, technical data sheets, 

component sheets and bulletins, all of which 

has been designed to ensure easy access to the 

correct procedures to assist in repairing the most 

common failures. If the workshop has an internet 

connection, it can access the “Solved problems” 

search functions powered by Google and the 

TGS2 vehicle system scan. n 


FOCUS | RMI 


IGA | FOCUS 

Another Leap Forward for Multi-Diag 

A plethora of different scan tools and testers are currently on the market, but do any of these match 

up to today’s requirements? With the number of vehicle makes and systems expanding all the time, 

diagnostics is fast becoming a minefield through which many diagnostic tools cannot navigate. 

H 

aving developed the first diagnostic tool 

in 1985 – the XR25 for Renault – and 

numerous OEM diagnostic network 

solutions over the last quarter of a century, Actia is 

well placed to deliver high performance multimake 

diagnostics to the Aftermarket. The awardwinning 

Multi-Diag platform goes from strength 

to strength, being updated at least 3 times a year 

(plus monthly internet updates on the light vehicle 

version). This constant development has led to a 

new version of Multi-Diag’s commercial vehicle 

software which promises to transform the way bus 

and coach workshops in particular, look after their 

own vehicles or operator customers. Bus systems 

are notoriously difficult to correctly identify and 

diagnose, with a myriad of different bodies used 

on a variety of different chassis, not to mention 

variances in individual chassis systems specified. 

This melting pot of electronics means that no two 

buses are the same (or so it seems). Perhaps for this 

reason, much of the UK bus parc is typically not 

listed in Aftermarket diagnostic tools, but Multi- 

Diag’s facility to create a user-defined database 

of vehicles overcomes this problem. Not only can 

the user define vehicle ID (e.g. registration or fleet 

number), but also the specific systems present on 

every individual vehicle: chassis manufacturer and 

type, make and model of engine/ABS/EBS etc. 

Multi-Diag’s simple step-by-step utility also helps 

the user find the systems present on the vehicle 

with its Automatic System Detection feature. Once 

located, the ECU make and type is stored against 

that particular vehicle for future use. 

So when diagnostic work is required, no time 

is wasted trawling through lists of systems to 

find, for example, the correct ABS ECU for the 

vehicle at hand. The technician is free to simply 

connect to the pre-defined bus and get on with 

diagnosing faults and getting the vehicle quickly 

back into service. 

“Systems are largely standardised in the truck, 

and to a greater extent in the car market, but 

bus operators are not well served by Aftermarket 

diagnostics and can find themselves constantly 

calling out the manufacturer or a specialist to 

read or reset basic faults – at great cost and 

delay,” explains Simon Stone, General Manager 

of Actia Muller UK. “We believe operators and 

CV workshops will be delighted with this new 

feature of Multi-Diag, which has been specifically 

designed to save money and downtime for the 

UK bus and coach sector.” n 

• For further information and to request a 

demonstration of the Multi-Diag range for car, 

van, truck and bus, contact Actia Muller (UK) on 

01686 611177. 



IGA | FEATURE 

Escribe 

For Easy Repairs 

Thatcham Research, the world leading automotive research centre, has completely redesigned 

its crash repair methods product to offer a new online database delivering vital data to insurance 

companies, engineers and repairers. 

T 

he new online escribe gives users 

instant access to the very latest 

Thatcham crash repair methods and 

recommendations, technical newsletters and 

times, whenever and wherever they are required. 

With new online escribe, users can quickly 

build up a repair specification. The new Vehicle 

Registration Mark (VRM) Look-up guarantees 

the correct methods for a particular vehicle. By 

selecting the exact components required, escribe 

users can build a comprehensive repair methods 

pack, with critical safety data and model specific 

methods, which exactly matches the damaged 

vehicle. 

Escribe delivers a fully defined, step-by-step 

workflow for each repair process and adds an 

individual job and bodyshop specific reference, 

dated and timed, to ensure full compliance with 

bodyshop standards. 

All escribe methods can be referred to 

instantly and conveniently from a P.C., tablet 

or mobile during the assessment and repair of 

the vehicle. Alternatively, the information can 

be printed and added it to the job card. Where 

available, it is also possible to select panel 

images via the Service Condition Image View, a 

particularly useful and quick way to identify the 

correct parts for ordering. 

Methods packs can also be saved. To ensure 

they have the very latest methods issued from 

Thatcham’s research laboratory, subscribers can 

go back into the method at a later time and 

escribe will immediately reveal any updates which 

have been made to the data. Thatcham has 

also included an audit feature, which provides 

a complete record of which methods were 

requested and who accessed the information in 

the workshop. 

Even better, subscribers to escribe now receive 

a free link to Thatcham Integrated Methods via 

Audatex AudaEnterprise Gold, giving assessor’s 

seamless access to methods throughout the 

estimating process. Escribe guides the assessor to 

identify the most efficient and cost effective repair 

specification, while also maintaining a quality and 

safety focussed repair specification. 

New escribe also offers an optional integrated 

parts pricing module, instantly providing the 

manufacturer parts costing, enabling the repairer 

to quickly produce a quote without the need for 

additional, time consuming, parts price searches. 

Thatcham enlisted the help of leading 

bodyshops and insurers during the development 

of escribe to ensure they incorporated all the 

requirements customers asked for. 

The new online escribe delivers a 

comprehensive and easy to use repair 

specification database from the internationally 

renowned motor research centre to ensure safe, 

efficient and cost effective repairs of motor 

vehicles. Satisfied customers include: 

“It has been a pleasure and it has worked well out 

on the road even in remote areas …” 

Glenn Cooper, Wickford Assessors 

“Methods selection using the VRM Lookup is 

model specific, so is more accurate” 

Andy Gover, VDA, Heritage Automotive 

“The new version with its registration recognition 

and model selection is much quicker, it flows 

quicker.” 

Dave Reason, ATA VDA, BP Rolls Ltd. n 



IGA | FEATURE 

Trust My Garage 

goes from strength to strength 

After a massively successful 2012 for the IGA and Trust My Garage, we are now deeply involved in 

building on this unique initiative to ensure we offer our members the very best service we can. 

F 

or instance right now the IGA is 

carrying out what we see as “phase 

two” of Trust My Garage to make 

this unique offering even more relevant to the 

day-to-day running of your business and we are 

currently carrying out feasibility studies around 

the following services: 

Service Plans 

One of our main priorities is to help independent 

garages compete with the services offered by 

competitors, especially where those services are 

clearly aimed at keeping customers within the 

confines of the manufacturer’s network. 

We know that service plans are currently being 

promoted by all the major manufacturers and with 

ever longer warranty periods on offer for new car 

buyers, the independent sector needs customers to 

have more than just the right to take their vehicle 

to an independent garage for service and repair, 

they need the motivation and desire to do so. 

The IGA is investigating how it might provide 

Independent members with the ability to offer a 

“service plan package” so that customers could 

put money aside to cover unexpected repair 

costs on their vehicle. It would be backed by the 

“Trust My Garage” brand and all of the benefits 

would be underpinned by the IGA - but we need 

your input. If you would like to make the scheme 

available to your customers please let us know. 

Business Development Tool 

Seeing the wood for the trees – or seeing 

ourselves as others see us. 

We all strive to provide the best service to our 

customers and none of us would turn potential 

customers away, but sometimes it’s the little 

details that stop a customer enquiry from turning 

into a workshop booking. 

The IGA would like to give you the chance 

to see your business as your customers see it – 

how much kerbside appeal does your business 

have – how do customers feel when they enter 

your reception – do your staff demonstrate the 

confidence and competence to make customers 

want to bring their car to you. 

Independent garages who are subscribers 

to the Trust My Garage scheme can choose to 

have a business development visit as a benefit 

of membership. An assessor will make an 

incognito visit to your garage and provide an 

entirely confidential short report directly to you 

as a business owner. This will point out the small 

changes you could make to gain and retain 

customers as well as comparing your labour rates 

with the local average. 

Of course, these initiatives are only a benefit if 

they are what you, our members want so please 

let us know what you think. Contact 0845 305 

4230 or e mail helpline@rmif.co.uk 

We will also be organising TMG roadshows 

around the country where members can come 

along and talk to the IGA team, pick up their 

TMG signage and network with other members in 

their area. There will also be informative talks by 

industry partners as part of the event. 

IGA Director Stuart James said: “Belonging to 

Trust My Garage is an absolute no-brainer for our 

members. If you are not involved then you truly 

are losing out. 

“There is no other offering like it in the sector 

as it gives customers complete peace-of-mind, 

backed by a unique consumer reassurance 

scheme up to a value of £1,000 should a 

complaint be justified. 

“Trust My Garage is the only consumer 

reassurance scheme of its kind out there. It ensures 

that your customers can have total confidence in 

your garage, when having their vehicle serviced, 

MOT tested or repaired in your workshops. 

“Not only that but motorists know that to 

belong to Trust My Garage our members have 

undergone a quality audit so they know they will be 

having their car looked after by the best there is.” n 


FEATURE | IGA 

GEMCO Service win Customer 

Experience Awards 2012 

Gemco Service, the market leader in providing technical facilities services to the 

Automotive sector, has won the prestigious UK Customer Experience Award for 

Facilities Management & Utilities for 2012. 

G 

emco Service has been recognised as 

an outstanding leader among service 

organisations who place the developing 

a fantastic “Customer experience” at the forefront 

of their business strategy, providing a superb 

National Service centre with strategically located 

expert engineers across the UK – focused on 

delivering “National coverage with a Local touch”. 

The UK Customer Experience Awards 

recognise and celebrate the delivery of an 

outstanding customer experience by those 

companies and organisations who are leaders 

in their field. The awards help companies set 

future trends, as well as be a part of them. The 

award was won against competition from market 

leading organisations such as EDF, Cooperative 

Energy and CNG. 

Gemco Service treats its people like family, 

creating a team where everyone works 

together to deliver an outstanding service. This 

strong ethos encourages employees to exceed 

expectations, providing outstanding service 

at a world class level. The secret to Gemco 

Service is that the intense focus on supporting 

it’s customers, which actually inspires a unique 

working culture. 

“We are absolutely thrilled to receive this 

recognition. It is a testament to the outstanding 

results delivered by the team and will inspire 

Gemco Service employees to drive further 

improvement to our customer’s experience,” said 

Clive Barton, Divisional Director at Gemco. “Our 

people are dedicated to providing the highest 

standard of service in every customer interaction. 

Customers across the UK trust us with their 

business critical Workshop infrastructure, so 

we must put them and their business first every 

time. We see ourselves as an extension of our 

customer’s workshop operations and we will go 

that “extra mile” to make sure customers receive 

the best support. The Gemco Service team is 

passionate about delivering a first class customer 

experience at every touch point. This commitment 

to providing a great customer experience, and 

exceeding customer expectations every single day 

is exactly what the Customer Experience awards 

are all about.” 

The results are impressive – Gemco Service has 

a UK customer base of over 10,000 customers, 

has excellent delivered continual improvement to 

Service, and Customer satisfaction performance. 

While delivering enviable profitability growth on 

the back of its successful service improvements. 

The Customer Experience award enhances an 

already growing reputation for providing excellent 

field service in the Automotive sector, and will 

help increase the profile of the business at a 

national level. n 

• If you have any questions regarding the award, 

or would like to work with Gemco Service - 

please contact Clive Barton via email 

clive.barton@gemco.co.uk. 


NFDA | UPDATES 

?? 

?? 

n 


UPDATES | NFDA 

?? 

?? 

n 


IGA | UPDATES FOCUS 

Simmo’s 

The Simmo’s solutions database is building 

to become a really useful bank of information 

answering common but challenging problems 

you all face in the workplace. 

I 

’m still busy delivering technical 

training courses but I now have 

a team mate on board and 

others to follow so if you are waiting for 

your training slot to be confirmed, please 

bear with us and we will get to you as 

soon as we can. If you haven’t signed 

up yet but would like to take advantage 

of the Safety and Awareness of Hybrid 

and Electric Vehicles course, e mail us at 

technicaltraining@rmif.co.uk. 

In the meantime and, as always, we’re 

here to help so if you have any puzzlers, 

please get in touch. Lee.Simonds@rmif.co.uk 

Crank sensor fault codes 

CAR: VW Golf 1.9 TDI 2008 

We took an enquiry on a crank sensor fault 

code being displayed on a VW Golf TDI. 

This is a common enquiry on a number of 

VW models and the fault codes displayed 

may cover crank sensors, cam sensors, or 

synchronisation between the two. In this 

case the code was displayed following the 

replacement of the rear crank seal. We 

also see issues on Volvo models that have 

recently had a replacement clutch and/or 

dual mass flywheel fitted. 

SOLUTION: On the Golf (and other VW 

models), the pickup ring is an integral part 

of the rear crank seal. Obviously this has 

to be fitted in a set position relative to the 

piston’s TDC reference. There is a VW tool 

listed, but with a good eye this job can be 

done without the tool. However, sometimes 

technicians miss this important step in the 

process and simply press in a new seal 

without first timing it up. More detailed 

information can be found in our technical 

database. 

We have had similar incidents where 

people remove the dual mass flywheel 

(DMF) on some Volvo models and do 

not notice that while the flywheel will, 

physically, fit in any position, it MUST 

be fitted in such a way as to be timed 

up. This is because the pickup ring is an 

integral part of the DMF. Our Images 

indicate that there is a locating dowel to 

help with the positioning. Most of the 

members we have had call or email about 

this problem tell us though that there is 

no such dowel present on the crank flange 

of their specific vehicle. It is possible that 

the dowel has either broken off or had 

been locked into the original DMF that 

had been removed. 

TIP: Unfortunately, these cases only come to 

light once the vehicle in question has been 

reassembled. As a result, the vehicle will 

either not run at all or runs poorly. In each 

case, putting things right means removing 

the gearbox and the flywheel, all of which 

is time consuming, and can mean extra 

cost for the repairer. On the VAG models it 

is most likely they will need a new oil seal 

assembly again as removing it often means 

the seal is destroyed in the process. 

Hybrid isolator – service safety fuse 

CAR: Lexus RX450h Hybrid 2010 

A member called in to say that he had this 

car in for body repair. As a safety precaution 

he removed the HV battery Hybrid isolator/ 

service safety fuse, and after repair replaced 

the service safety device. That done, the 

vehicle will would not initiate and showed a 

warning hybrid system fault warning light. 

The garage had no idea what it was doing 

wrong or what the fault might be. 

SOLUTION: I have heard of several issues 

arising when it comes to reinstalling 

the safety device (service plug) and the 

hybrid system then not initiating. First, 

try powering down again, and follow this 

procedure: 

• power off keyless system 

• press power button on dash to turn off 

• Next, remove and install safety device 

again (using all safety precautions HV glove 

etc.) 

• wait five minutes 

• reinstall and wait a further five minutes. 

Now follow normal starting procedure: foot 

on brake, power button light goes green, 

then press it. The hybrid system should 

now power up. Sometimes it can take 


FEATURE FOCUS | IGA 

Solutions 

several attempts if the wrong procedure has 

already been used. 

TIP: It sounds to me as if the service safety 

plug was removed while the hybrid system 

was still live. You always need to power 

off first before removing the service safety 

plug. If after several restarts the hybrid 

warning is still on you may have to use your 

diagnostic equipment through the OBD 

socket to erase the fault. 

Hybrid fault system 

CAR: Toyota Prius 2010 

Another hybrid issue, this time with a 2010 

Prius (new shape). The garage removed 

the service plug to carry out some body 

repairs wanting, correctly, to be safe, not 

sorry! When completed the service plug 

was replaced and the car system and hybrid 

system were powered up, but on the 

electronic dash the warning hybrid system 

fault “ please check” came up. What could 

have gone wrong? 

Oxygen sensor fault code 

CAR: BMW 730i (2003) 

This problem related to a member with a 

problem relating to 7 series BMW in which 

the MIL light comes on to indicate a p0137 

code DTC for the oxygen sensor. The member 

checked the wiring and made sure there was 

no leak from the exhaust. The technician 

even replaced the sensor. Frustratingly, the 

garage seemed able to cure the fault only to 

find that, when the vehicle was taken for a 

short drive, the fault recurred. 

SOLUTION: If everything has checked out 

and you are absolutely sure that the wiring 

is sound, then the answer might lie in 

something that I have come across before. 

Have you thought to check the inlet side 

(engine). I have heard of a slight leakage 

from the brake servo when the brake pedal 

is depressed, as it is attached to the inlet 

manifold with the servo vacuum hose. On 

the vehicle I have come across it was a very 

slight escape under light brake application 

which triggered an air leak on the inlet 

side and which in turn affected the oxygen 

sensors in the exhaust! Of course, the fault 

only reoccurred once the vehicle was back 

on the road and the vehicle’s brakes were 

being used! n 

SOLUTION: Firstly, you only have to remove 

the service plug to make the system safe if 

you were are intending to disturb, or work 

on, the HV system. Did you carry out the 

correct procedure with the appropriate PPE 

HV gloves etc? It does sound to me that 

the service plug may have been removed 

with the car on. If this were the case the 

removal would have been indicated to the 

hybrid ECU and the system would indicate 

a fault. 

TIP: As with the Lexus in the above problem, 

it is not recommended that the service plug 

be removed when the system is still live. 

Power down and repeat the procedure 

and reinstall, then wait five minutes. Then 

check. If the fault is still indicated carry out 

the drive cycles (turning on and off three 

times). Following this the indicator warning 

should go out. You can also read and erase 

faults through OBD Diagnosis and erase. 




Sue Robinson - NFDA 

Tel: 0207 307 3424 

sue.robinson@rmif.co.uk 

Louise Woods - NFDA 

Tel: 01788 538 332 

louise.woods@rmif.co.uk 

NFDA/CV 

36 

Member plays lead training 

tomorrow’s technicians 

38 

Mileages on MOTs to 

beat clocking 

40 

Commission Disclosure 


41 

NFDA marks first Autumn 

Ball and awards 

Stephen Latham - CV/MRA/NFDA 

Tel: 07515 975157 

stephen.latham@rmif.co.uk 

NFDA wins the day 

The NFDA is celebrating a victory over victory for commonsense, “ said Stephen 

government red tape. From this month it Latham, NFDA Senior Operations Manager. 

will no longer be necessary to travel to the Instead of having to make regular, 

nearest DVLA office to change the class sometimes weekly, visits to the nearest DVLA 

of three year old ex Motability cars from regional office to have the class changed 

exempt to private. 

from exempt to private on motability 

Lobbying by the NFDA has finally got vehicles, it can now be done at the local Post 

the Government to see sense, and now all Office. 

vehicle tax changes can be done at any one Over the last 12 months the NFDA 

of over 4,000 Post Offices in England, Wales has been strenuously arguing the case for 

and Scotland. 

changing this regulation, we have lobbied 

“It means the end of wasteful journeys both Government and the DVLA to reduce 

and major inconvenience. Franchised dealers ‘Red-Tape’ by abolishing bureaucracy that 

will save time and money, so this is a clear cost the motor industry needlessly. n 

NFDA member plays lead role in 

training technicians of tomorrow 

NFDA members Benfield Motor Group 

are playing a lead role, along with vehicle 

maintenance equipment supplier, Gott 

Technical Services, in helping to nurture the 

next generation of automotive workers. 

The project involves more than 300 

students from Gateshead College’s motor 

vehicle mechanic, body repair and paint, 

welding and engineering courses across all 

year groups. The project sets students the 

challenge of designing a piece of garage 

equipment of the future. 

With the chance of winning a month’s 

industry work experience within a real garage 

environment (provided by Benfield Motor 

Group), and a job shadowing a Gott Engineer, 

students will work in pairs to design a new 

piece of equipment aimed at making life 

easier for garage owners and mechanics. 

Students will have one month to work on 

their design, which could be anything from new 

clothing for mechanics, a piece of equipment 

for electric and hybrid vehicles, something to 

improve productivity, or something to deal with 

health and safety issues. 

Benfield Motor Group’s Mark King 

said: “We are delighted, as the North East’s 

largest Motor Group, to be supporting this 

competition and are looking forward to seeing 

some innovative equipment designs and ideas, 

which could potentially improve the efficiency 

of work in our service centres and garages.” 

Gott Technical Services director Ian 

Gott said: “We are keen to play our part in 

promoting the development of skills within 

the automotive industry so we are delighted 

to launch this opportunity with Gateshead 

College. We want to help to stimulate the 

minds of young learners looking forward 

to a career in our sector and hopefully give 

them their first step on the career ladder. 

“Who knows? If the design shows massive 

potential then we could even look at getting 

the piece made into production for real.” 

The students will present their ideas to 

Ian Gott, a local garage owner and Richard 

Winship, lecturer in motor vehicle body 

repair and refinishing at the college. Richard 

Winship commented: “This competition 

is a great opportunity for our students to 

work alongside and learn from some of the 

best people in the automotive maintenance 

business. In addition to developing their 

industry related abilities, the students will be 

required to work as a team, think creatively 

and communicate effectively, all skills which 

are vital to future success.” n 


UPDATES | NFDA 

NFDA warns dealers over 

personalised plates 

Dealers are being warned to check 

the certificate of entitlement for 

personalised registration numbers. 

The warning comes after the 

DVLA flagged up concerns over the 

need to check the Certificate of 

Entitlement (V750) when purchasing 

a personalised registration (number 

plate) from a private seller after 900 

blank certificates were stolen. 

Motorists are advised not to 

purchase the registration number 

if the serial number of the V750 

certificate falls within between 

5930101 and 5931000. The serial 

number is on the top right corner of 

the certificate. n 

VOSA closes two 

more test stations 

VOSA is to end annual MOT testing 

Local management teams are 

of trucks and buses at their sites in involved with the central project 

Gillingham and Grantham by the team in planning the future delivery 

end of March next year, 

of operations in these areas. They 

After reviewing the catchment are already working with local 

areas of each of their test stations customers to support them through 

to assess the likely market for the ATF application process and 

ATFs, their review of Gillingham they will be contacting companies 

and Grantham has demonstrated who have expressed an interest in 

“sufficient market interest in ATFs to providing testing facilities. n 

enable VOSA to announce ceasing 

testing at these sites”. The ATFs in 

the two areas cater for all types of 

annual test. 

VOSA vehicle safety recalls 

The most recent VOSA recalls are included here. 

For further information on any of these recalls, 

visit the VOSA recalls database website, or 

contact your local dealership. 

Remember before you retail a used car, van or 

motorcycle to a customer you must ensure any 

outstanding safety recalls are carried out before 

handing it over to its new owner. n 

VOSA Reference Number Make and Model Issue 

RM/2012/022 Polaris – Victory Throttle cable retention must may not be torqued correctly 

R/2012/093 Renault – Megane Braking performance may be affected 

R/2012/094 Citroen – C3 Picasso Risk of Fire 

R/2012/096 Lamborghini – Gallardo coupe and Spyder Risk of Fire 

RM/2012/021 Ducati - 1199 Panigale Brake fluid may leak 

R/2012/098 Peugeot - Bipper Rear cross member may crack 

R/2012/099 Citroen – Nemo Rear cross member may crack 

RM/2012/023 Ducati – 1199 Panigale Swinging arm shaft may not be torqued correctly 

RM/2012/020 Honda – Integra NC700D, Nc700X and NC700S Loss of drive 

R/2012/128 Maserati – Quattroporte, Granturismo and Grancabrio Incorrect warning lights may be displayed 

R/2012/121 LTI – TX4 Steering box may fail 

R/2012/105 Nissan – X-Trail Engine insulation may rest on turbocharger 

R/2012/085 Toyota Auris, Avensis & RAV4 Rear suspension arm may separate 

R/2012/087 Vauxhall Vivaro & Movano Seat belt buckle may fail 

R/2012/088 Mercedes Smart 451 Loss of control 

RM/2012/019 Triumph Daytona 675 Street Triple Engine may stall 

R/2012/095 Vauxhall Antara Brake performance may be reduced 

R2012/101 Mercedes Benz Actros Risk of fire 

R/2012/100 Peugeot 208 Brakes may fail 

R/2012/092 Ford – Maverick Throttle may stick in the fully open position 

R/2012/103 Nissan Qashqai & NV200 Possible loss of steering 

R/2012/104 Volvo V60, V70, Xc70 & S80 Reduced braking perfrmance 



Toyota recall Avensis, 

Corolla and Prius 

Toyota GB has registered a recall 

on Avensis, Corolla and second 

generation Prius models with the 

Vehicle and Operator Services 

Agency (VOSA). The recall affects 

approximately 75,000 vehicles in 

the UK and will be carried out in 

accordance with the VOSA Code of 

Practice. 

What is the condition? 

On certain of the above models 

equipped with Electric Motor 

assisted Power Steering [EMPS] 

there might be a possibility that 

due to insufficient hardness of the 

extension shaft material the splines, 

which connect the extension shaft 

to the steering gear box, may 

deform if the steering wheel is 

frequently and forcefully turned to 

the full-lock position while driving 

at slow speed. This may create an 

increased backlash, and splines may 

eventually wear out over time. 

There have been nine reported 

cases of this issue in Europe and no 

reports of any associated accidents. 

On second generation Prius there 

is an electrically driven water pump 

assembly which circulates coolant 

through the hybrid components, 

including the inverter assembly, to 

provide cooling. There is a possibility 

that the coil wire of the electric 

motor installed in the water pump 

may have been scratched during 

the coiling manufacturing process 

at the supplier. In this condition, 

the coil wire may corrode at the 

scratched portion and in some 

cases break. If this occurs the 

water pump could stop, leading 

to illumination of various warning 

lights in the instrument panel. In 

Any tachograph activated after 

1 October last year must be third 

generation, although first or second 

generation tachographs already in 

use before then are still allowed. 

Second generation tachographs 

limited instances, a short circuit 

occurs between adjacent coil wires, 

resulting in a blown fuse for the 

electric power supply circuit, causing 

the hybrid system to stop. 

There have been three reported 

cases in Europe. There are no 

reported accidents related to this 

issue. 

What will be done? 

Toyota has decided to conduct recall 

activity to replace the hybrid system 

water pump and check steering 

shaft performance on the affected 

cars. 

In full compliance with VOSA 

requirements, Toyota GB will 

contact the owners of all affected 

vehicles, asking them to make an 

appointment to bring their car to 

their nearest Toyota dealer. It is 

possible that some Prius models will 

require attention for both issues. 

According to model, the dealer 

will replace the hybrid system water 

pump and/or inspect the steering 

shaft. If the steering shaft does not 

meet Toyota inspection criteria, 

it will be repaired. The water 

pump replacement should take no 

more than an hour-and-a-half. If 

required, the steering shaft repair 

should be completed in an hour. 

This work will be carried out free of 

charge. n 

• The NFDA will be monitoring the 

situation, however if members face 

any issues when dealing with the 

repercussions of the recall, please 

contact us. A positive to this is that 

it will be an ideal opportunity to 

get Toyota owners back into Toyota 

dealers. 

Third Generation Tachographs 

were implemented from 1 October 

2011. The third generation devices 

have improved safety features 

For up to date information email 

enquiries@vosa.gov.uk for further advice 

on the fitting of digital tachographs. n 

MOTs must now carry 

mileages to beat clocking 

VOSA has announced that the MOT 

certificate must now record the 

mileage of a vehicle for the current 

test, as well as the mileages recorded 

on the last three certificates. 

The change follows long and 

hard campaigning by the NFDA and 

has now come into effect. 

It means that a more accurate 

vehicle history can be relayed to the 

potential buyer of a used car. NFDA 

Director Sue Robinson said: “This is 

an extremely positive move that will 

Tough times have seen a rise in 

the number of businesses in the 

automotive sector going bankrupt, 

latest figures reveal. Although the 

UK overall saw a 3.1% drop in 

insolvencies, within the motor trade 

the trend is upwards, peaking at 

0.16% in the spring. 

Andrew Ballard. Principle 

consultant for Experian Automotive 

UK and Ireland, said: “Although the 

percentage of the total automotive 

industry that has failed has remained 

broadly stable, it is still higher than 

the national average. 

“This highlights the very tight 

margins that businesses have been 

operating in and reinforces the need 

for motor traders to utilise all the 

information available to guide their 

business through challenging times.” 

Smaller companies across the 

UK saw the greatest improvement 

in insolvency rate, especially those 

between 26-50 employees. For 

bigger firms, the only increase 

ensure used car dealers gain a much 

more accurate picture of a vehicle’s 

history. 

“The NFDA have long 

campaigned for rigorous regulation 

of clocking and this change in 

legislation is a positive step to wipe 

out rogue activity. Additionally, 

consumers will benefit from the 

changes as it means they will have a 

completely accurate account of the 

current condition of the used car 

they are purchasing.” n 

Automotive insolvencies on the rise 

The Mitsubishi L200 truck now 

comes with the longest warranty 

of any pick-up truck in the UK 

marketplace – a class-leading five 

years or125,000 miles. 

Mitsubishi Motors in the UK 

Managing Director, Lance Bradley, 

said: “Warranty cover for five years 

or 125,000 miles gives buyers of the 

in insolvency rates came among 

businesses with 51-500 employees. 

Max Firth, Experian Business 

Information Services, UK&I 

managing director, said: “Firms 

need to be prudent and consider 

their credit management practices 

in order to survive. Risk planning 

and monitoring their financial 

health and that of their customers 

and suppliers can make or break a 

business.” n 

Mitsubishi L200: fiveyear/125,000-mile 

warranty 

Mitsubishi L200 peace of mind for 

longer than any other pick-up in the 

UK. The Mitsubishi L200 won What 

Van? ‘Pick-up of Year’ 15 times in 18 

years and is renowned as a tough and 

reliable truck, which is why we have 

the confidence to put our money 

where our mouth is. What’s more, the 

whole L200 range will be covered.” n 


UPDATES | CV 

New national standards 

for lorry drivers 

Lorry drivers can download a new 

set of safety guidelines aimed at 

improving standards within the 

haulage industry. They outline what 

drivers need to know in areas such as: 

• preparing a vehicle and its 

occupants for a journey 

• guiding and controlling a vehicle 

• using the road in accordance with 

the Highway Code 

• driving safely and responsibly in 

the traffic system 

• reviewing and adjusting driver 

behaviour over a lifetime 

Rosemary Thew, Driving 

Standards Agency chief executive, 

said: “The haulage and passenger 

transport industries are a vital part 

of Britain’s economy and have an 

important role to play in keeping our 

roads among the safest in the world. 

“The publication of these standards 

will help to ensure that all bus and 

lorry drivers acquire the right skills, 

knowledge and attitude to use our 

roads safely and responsibly, as well as 

contributing to cutting the human and 

financial cost of road accidents.” 

The standards should form the 

basis of training that a lorry, bus or 

coach driver receives and the training 

industry is encouraged to create 

courses that address them. This 

includes both the training that drivers 

complete to drive professionally 

(Driver CPC) and training for those 

who don’t drive for a living. 

The National Driving Standard 

Category C (lorry) and National 

Driving Standard Category D (bus 

and coach) address specific issues 

such as the use of tachographs and 

the dangers of continuous driving. n 

• Visit the DSA website at http:// 

www.dft.gov.uk/dsa 

Excitement builds 

for 2013 CV show 

The 2013 Commercial Vehicle Show 

Benz Citan. 

looks set to be truly international as It will be five years since Iveco 

key players in the truck marketplace last exhibited at the CV Show in its 

get set to gather at the Birmingham own right but it too will be back 

NEC from 9-11 April. 

showing its flagship Stralis Hi-Way, 

With the implementation date winner of the International Truck of 

for Euro 6 set for January 2014, the Year Award 2013. MAN will also 

the Show is expected to provide take the opportunity for the first UK 

the perfect backdrop for several showing of its Euro 6 cabs. 

important industry launches, 

Following on from the successful 

including: 

launch earlier this year of Isuzu’s 

• Volvo Trucks returning for first innovative telematics system, 

time since 2008 

Mimamori, CV Show 2013 will 

• Iveco making their first 

see the launch of the next stage 

manufacturer-backed appearance in in the company’s driver and 

five years 

operator management programme, 

• DAF back after 2012 gap with Mimamori 2. 

50% bigger stand 

The signs are that the 2013 

Commercial Vehicle Show will 

DAF will be there with its new be another great success. Road 

Euro 6 XF, Volvo will be making transport provides an accurate 

a major splash with its recently barometer for the health of the 

launched new FH series and 

rest of the UK economy and the 

Mercedes-Benz UK will be showing indications are that it will play an 

its new ‘urban hero’, the Mercedes- even greater part in the recovery. n 

Uncertainty weakens 

CV registrations 

The September plate change saw 

the commercial market enjoy a rise 

in van sales of 1.1% but this slight 

improvement did nothing to reverse 

the poor year-to-date sales figures for 

vans up to 3.5 tonnes and which were 

down 6.3%, a fall of 12,615 units. 

The real concern over business 

confidence is the slowdown in 

heavier rigid truck sales. In the past 

nine months these have been rising 

with a market increase of 32%. The 

bubble burst in September with the 

market falling 3.2%. The biggest 

reduction was in the multi-wheeled, 

over 16tonne rigid chassis vehicles 

primarily used in the construction 

industry and other heavy duties. 

The tractor market has been 

disappointing throughout 2012 and 

is down year-to-date by 6.2%. Even 

this sector seemed to stabilise in 

September with a slight rise of 1.1% 

which could indicate that operators 

are buying up the Euro 5 engine units 

before the mandatory introduction 

of the cleaner, but less economical 

and more expensive, Euro 6 powered 

tractors that all manufacturers are 

now introducing. n 

Van driver 

tyre risks 

Many van drivers have a cavalier 

attitude towards their tyres, a 

survey has shown. Roadworthiness 

checks carried out by the Vehicle 

and Operator Service Agency, 

VOSA, found that 26% of vans or 

light commercials were running on 

illegal tyres. 

VOSA found that; “One of the 

major causes of tyre problems on 

vans is overloading, coupled with 

under-inflation. The stress placed on 

tyres under these circumstances is 

enormous. 

“Excessive loads can cause heat 

to build up in the tyres, adversely 

affecting grip and handling. Should 

the tyre fail because of these issues, 

the results can be fatal.” 

Apart from the danger to 

van drivers and other road users, 

excessively heavy loads cause loss 

of steering and longer stopping 

distances. Driving overloaded 

is a false economy. The report 

stated: “Running tyres above their 

recommended load capacity – 

details of which are contained in 

the vehicle handbook - can also 

dramatically increase tread wear 

and the operating life cycle of the 

tyre, leading to premature wear 

and replacement. This means that 

operators would be forced to replace 

tyres more often, adding significantly 

to their operational costs.” n 


NFDA | FOCUS 

NFDA’s Commission 

Disclosure information pack 

A new information pack designed to guide dealers through the red-tape minefield that 

must be dealt with when selling finance packages has been launched by the NFDA. 

T 

he detailed information pack 

and tool kit are aimed at helping 

dealers through the Office of 

Fair Trading (OFT) rules for disclosing 

commission. 

The OFT 2011 Guidance for Credit 

Brokers and Intermediaries introduced 

the concept of commission disclosure for 

dealers selling finance products. Dealers 

have been expected to comply with the 

guidance and disclose commission to 

customers in certain circumstances. 

NFDA Director Sue Robinson said: “The 

NFDA Commission Disclosure toolkit and 

guidance is a vital tool to help dealers 

comply with the OFT Guidance for 

Credit Brokers and Intermediaries, which 

introduces the requirement to disclose 

commission to customers. 

“Failure to comply with the OFT 

guidance could have implications for 

dealers with regard to their consumer 

credit licence, particularly the OFT’s view on 

their fitness to hold that licence. 

“The information pack and tool kit has 

been specifically tailored for the motor 

industry and will be available in two 

formats - a user-friendly web based tool 

and a comprehensive written version. 

“Both versions will take the user 

through a step-by-step process to discover 

any conflicts of interest when providing 

financial products to customers, and 

showing when it is necessary to disclose 

the existence of commission. 

“The two versions also contain a broad 

range of information on commission 

disclosure issues that affect motor retailers 

and aim to answer any questions dealers 

may have on the subject. 

“This has been a major piece of work 

undertaken by the NFDA Finance and 

Insurance group and I would personally 

like to thank all those that have helped to 

develop the project. 

“This is a significant package which 

will greatly assist dealers within their 

businesses. We would urge all dealers to 

utilise the ‘kit’ to ensure they are complaint 

with this guidance.” 

The NFDA guide is the only one 

specifically developed for the retail 

motor operator. It does not have OFT 

endorsement and should not be used as an 

alternative to getting legal advice specific 

to your business. Rather, it is designed to 

allow you to assess you own business as 

a credit broker / credit intermediary in the 

light of the OFT Guidance, and for you to 

reach conclusions on issues on which you 

must take a view and action, as a result of 

the OFT Guidance, namely: 

• Independence – or limits on your 

independence 

• The existence of 

commission 

• The potential for 

commission to create a 

conflict of interest 

• Handling customer 

requests for 

disclosure of 

commission 

• Forms of disclosure 

statement and when 

and where to 

make them 

The Guide does 

not cover all the 

material in the 

OFT Guidance, 

but is confined 

to the above 

topics. It includes 

warnings on the 

consequences 

of making 

the wrong 

judgments on 

these issues, 

but is not a 

substitute for 

your own legal 

advice. 

• To find out more contact Louise Wallis 

at louisewallis@rmif.co.uk or phone 01788 

538332. 

• A full copy of the guide can be found 

at http://www.rmif.co.uk/associations/ 

nfda/reports-and-publications/guidancedocuments/ 

• The interactive web tool is available 

to members here: http://www. 

nfdacommissiondisclosure.co.uk/ 

To set up your individual log in details, 

please contact caterina.recina@rmif.co.uk or 

phone 020 7307 3412 n 


FEATURE | NFDA 

NFDA celebrates its first 

Autumn Ball 

and Awards 

Successful industry experts were rewarded with presentations at the first Autumn Ball 

Awards organised by the NFDA. It was a chance to show members just what has been achieved 

in the industry. 

S 

ue Robinson, NFDA Director, said: “This 

was a deserved salute to those whose 

very high levels of expertise and skills 

go unacknowledged far too often. Our first NFDA 

Ball was a tremendous success, providing us with 

the perfect opportunity to celebrate the NFDA as 

an autonomous body and what that means for 

the sector.” 

The three award winners were carefully 

selected based on criteria set by the NFDA 

executive committee and were awarded for the 

first time at the inaugural Ball at the Celtic Manor 

Resort in South Wales. 

The Manufacturer Award was determined 

using the results of the latest NFDA Dealer 

Attitude Survey and was selected on the basis 

of specific questions that relate to the dealer/ 

manufacturer relationship. 

The Industry Icon award was given to an 

individual who has made a significant difference 

in the automotive industry, someone who has 

contributed greatly, year on year against all the odds. 

The Business Partner Award was given to an 

individual who has continued to be an active 

supporter of this industry by supporting business 

development, helping push for innovation and 

keeping a high level of professionalism through all 

aspects. Robinson added: “Congratulations to all 

the winners, they are all greatly deserving of these 

accolades.” 

The winners were: 

• Manufacturer Award: Winner BMW 

• Industry Icon Award: Eddie Hawthorne, 

Chief Executive of Arnold Clark 

• Business Partner Award: Miles Trower, Partner 

for TLT Solicitors 

Industry Icon 

The Glasgow based Chief Executive of car 

dealer Arnold Clark received the award and 

NFDA Director Sue Robinson said: “The NFDA 

congratulates Eddie on his achievement, it is well 

deserved and is a reflection on the hard work and 

dedication Eddie has shown the industry over his 

many years of involvement. 

“Arnold Clark is one of the industry’s 

leading retailers. Eddie’s determination, grit and 

professionalism have contributed greatly to the 

continued development of the group which has 

consistently delivered high levels of business 

performance.” 

Business Partner 

Miles Trower was named Business Partner of the 

Year by car dealers across the country. Miles, 

of TLT Solicitors in Bristol, won the prestigious 

award for his commitment and dedication to the 

needs of the industry. Sue Robinson said: “The 

NFDA congratulates Miles on his achievement, 

it is well deserved and is a reflection to the hard 

work and dedication Miles has shown over 

recent years. Miles has worked closely with the 

NFDA over recent years and has a great depth of 

understanding on the workings of the franchised 

car dealer. 

‘We look forward to continuing the work 

relationship with Miles and TLT Solicitors over the 

coming year.” n 


NAMA | UPDATES 

NAMA/MRA 

42 

Shoreham Auction 

supports BEN 

42 

Older cars keeps sales 

on the move 

43 

Manheim acquire 

Dealer Auction 

43 

NAMA launches 

new CV report 

46 

Profits the big dealer worry 

reports latest MRA survey 


Louise Wallis, Head of NAMA 

Tel: 01788 538336 

louisewallis@rmif.co.uk 

Stephen Latham, Head of MRA 

stephenlatham@rmif.co.uk 

Shoreham Auction Supports BEN 

BEN, the automotive industry charity, was Manager for BEN said: “Alan’s enthusiasm 

delighted to receive a cheque for over is infectious! It’s been a pleasure to work 

£1,000 after a second charity auction run by with the team at Shoreham Vehicle Auctions 

NAMA members Shoreham Vehicle Auctions. on this fundraising initiative. I’m looking 

Alan Agate, Operations Director of forward to doing it all over again with them 

SVA said: “Following on from our highly next year. We can’t thank enough all the 

successful first charity auction, we’re once generous companies who donate so much 

again thrilled to make such a donation to the to our charity. 

charity BEN. As a member of the automotive “The continued support of firms like 

industry we enjoyed organising an auction RMI NAMA members SVA is instrumental in 

that will continue to support the great work enabling BEN (www.ben.org.uk) to make a very 

BEN does.” 

real difference to the lives of thousands working 

Tracy Brislen, Regional Development in the automotive and related industries.” n 

Older car sales keep dealers rolling 

Dealers are increasingly turning to older fuelled the phenomenon of used car inflation. 

cars to oil the wheels of forecourt sales. The How long this will take to filter through to the 

average age of dealer vehicles at auction has consumer market is a tough call.” 

broken the 100-month mark for only the The average selling price of dealer 

second time this year, highlighting dealers’ part-exchanges towards the end of the 

increasing reliance on older, part-exchange year was £2,597, a rise of over 5% (£128) 

vehicles to secure new sales. 

compared to prices achieved in August. On a 

Daren Wiseman, valuation services year-on-year basis, the value of dealer partexchanges 

has appreciated by a remarkable 

manager at Manheim Auctions, commented: 

“There’s no doubt about it, more dealers 13.4%, according to the recent Manheim 

are having to ‘go vintage’ and look at Market Analysis. 

remarketing older cars to secure new sales. On a year-on-year basis, not one of the 

The big question facing all motor retailers vehicle segments in the analysis saw a fall 

is - when will the market revert to normal, in this measure. Indeed, superminis, large 

with predictable depreciation and seasonality family cars and compact executive models 

returning to the market? 

have, year-on-year, each seen an increase of 

“As manufacturers focus their attention 2%t on this score (to 19%, 12% and 16% 

on pushing more units into the UK market, respectively), while coupes and 4x4s have 

basic economics says that this should start to retained their relative values at 17% and 

ease the chronic shortage of new cars that has 20% respectively. n 

Used car values on rise and rise says BCA 

Continuing shortages in the wholesale used car and September recorded the three highest 

markets have resulted in record average used monthly part-exchange values on record. 

car values according to NAMA members BCA. BCA Communications Director Tony 

With used cars averaging £6,216 across Gannon said: “Supplies reaching the wholesale 

the period, the third quarter of 2012 saw the used car market are quite significantly down 

highest value since 2005. This represented on the peak of four to five years ago and 

a significant £325 (5.5%) improvement over there is a real shortage of good quality, readyto-retail, 

used cars. This is leading to fierce 

the second quarter of the year and was £293 

(4.9%) ahead year-on-year. 

competition and generally rising values for the 

Fleet and lease values increased to £8,177, best examples reaching the remarketing arena. 

the highest on record and ahead yearon-year 

by £917 (12.6%). Part-Exchange and is unlikely to change until new car 

“This stock shortage is a long-term issue 

values averaged £3,002, and this was also volumes pick up significantly and the economy 

the highest quarterly value recorded by the improves enough to generate a bigger churn 

BCA Pulse report since it began publishing of vehicles in the marketplace. This doesn’t 

in 2005 and up £159 (5.5%) compared to diminish the effect of the typical seasonal 

the second quarter of 2012 - and ahead pressures, of course, which saw values and 

£304 (up 11.2%) year-on-year. July, August conversions weaken in early October.” n 


UPDATES | MRA 

Manheim acquires 

Dealer Auction 

Online dealer buying has taken 

another huge leap forward with 

the acquisition of Dealer Auction 

by NAMA members Manheim. 

The link up with the company, the 

UK’s largest and most successful 

electronic trade-to-trade vehicle 

remarketing channel, came only a 

few months after Manheim bought 

Motors.co.uk. The new multimillion 

pound deal confirms their 

commitment to the electronic age. 

John Bailey, Manheim’s Chief 

Executive said: “The industry is in 

a period of sustained change and 

our remarketing business is simply 

moving with the times. Inter-dealer 

wholesaling is an age-old practice 

and still thrives completely outside 

the traditional remarketing arena. 

Dealer Auction provides franchised 

dealers, who prefer to wholesale 

directly to the trade, with a very 

effective solution. In essence, it 

modernises vehicle trading by 

bringing together the previously 

disparate wholesale community and 

creates a very exciting online trade 

marketplace. This sits very naturally 

alongside our main remarketing 

business which continues to remain 

as strong as ever, but we now 

provide our dealer buyers and sellers 

with even greater choice.” 

Dealer Auction’s electronic 

sales catered mainly for vehicles 

arising from franchised dealers. 

The e-auctions operate on a rolling 

basis and allow registered trade 

buyers exclusive online access to 

this massive source of quality partexchanges 

and other non-required 

stock. Unlike traditional remarketing 

channels, buyers and sellers deal 

directly with each other and it is 

only the online bidding and listing 

platform which Dealer Auction 

provides to its customers. 

The two founders of Dealer 

Auction, Clive Colyer and Gavin 

Smith, remain at the helm of 

the business as joint Managing 

Directors, reporting directly to 

Chairman John Bailey. Clive Colyer 

said: “Since we founded the 

business three years ago it has 

grown dramatically. This success 

has been achieved despite facing 

the fiercest competition we’ve ever 

seen in the industry and it has really 

underlined the demand for our type 

of service. However, we needed 

major scale and investment to fully 

exploit our true potential and, to 

now be part of Manheim, gives us 

just that.” 

Gavin Smith added: “Dealer 

Auction offers true dealer-to-dealer 

trading in a dynamic, managed 

environment. Trade buyers and 

sellers come together whenever 

and wherever they choose to and 

we simply facilitate the vehicle 

transactions they want to make 

between each other. It’s a simple but 

great proposition!” n 

NAMA launches new CV report 

NAMA has launched its very first 

Light Commercial Vehicle (LCV) 

market report. 

The first and latest 2012 report 

covers data for the last 12 months 

using a database of LCV auction 

sales of around 100,000 vehicles. 

NAMA will continue to publish this 

report on a monthly basis. 

The report shows that during 

October the average values of used LCVs 

at auction across the board increased 

from £4,550 to £4,675, a 3% increase 

between September and October. 

This is the third consecutive 

increase in sales in the LCV market. 

The overall market conditions in 

October were encouraging with total 

sales volumes increasing by 10%. 

Conversion rates were also up, rising 

sharply from 75% to 81%. These 

favourable conditions had also been 

seen in August and September. 

The increase in market conditions 

can almost entirely be attributed to 

the shortage in the supply of clean, 

used LCVs. This shortage pushed up 

values as buyers paid more for better 

quality lower mileage vehicles. 

The first price is the best price 

In October, the average ‘first time 

price’ was £4,750, whereas the 

LCVs sold in that month that were 

Price changes - October 

compared to September 

by age 

re-entries were selling at an average 

of £4,325, some £425 less. 

Prices for 

first time 

entries 

compared 

to prices at 

subsequent 

sales 

Price 

- 1st 

Entry 

Price 

- 2nd 

Entry 

August £4,507 £4,172 

September £4,588 £4,373 

October £4,750 £4,325 

It is likely that the true price 

difference was even greater as 

improving market conditions caused 

subsequent auction sales to achieve 

higher prices. Evidence would 

suggest that in general, the first bid 

is clearly the best bid. 

Alex Wright, Chairman of the 

NAMA Commercial Vehicle Group 

said: “October recorded the highest 

prices as well as the highest sales 

for the year so far. This all points 

towards an underlying strength 

within the LCV market which could 

carry the sector smoothly into 2013. 

“NAMA believe that the 

underlying stock shortages that are 

a continuing feature of the long 

term market will become evident 

once again and we would also 

expect to see a few dealers start to 

proactively buy for January.” n 

Sept 2012 % Diff Oct 2012 % Diff 

< 2 Years £10,065 6% £10,150 1% 

2 - 4 Years £5,990 4% £6,275 5% 

4.1 - 6 Years £4,095 5% £4,225 3% 

Over 6 Years £2,520 17% £2,525 0% 

Bike sales disappoint 

Bikers are proving less keen to go for the new with the bank of mum and dad being less likely to 

registration in September than they used to be. The lend funds. 

second annual number plate change in the year is no It is not all bad news. The 125cc market is doing 

longer such a draw, as total motorcycle registrations well, as many households dispose of the second 

for the new 65 numberplate were disappointing. car and commute to work with a new, economic 

Sales fell 3.5% compared with September 125cc motorcycle. Four of the eight motorcycle style 

2011. The effect was very evident in the 50cc categories had their best sellers in the 125cc range. 

moped market, with sales down 9.2%. This is the They were Custom, Naked, Scooter and Supersport. 

entry market for 16 year olds. It is thought poor When it comes to power ranges, it’s the 

employment prospects could be to blame, along middle group that is selling, with 51 to 125cc and 

651-1000cc making gains and the 126 to 650cc 

unchanged. The real losers are the 50cc small 

machines and large, over 1000cc, aspirational 

motorcycles, which were hit with September falls 

of 9.4% and 26.5% respectively. 

In overall volume terms, Honda and Yamaha 

lead the market, but this September Suzuki came 

in third place with 947 bikes registered. BMW, 

Triumph and Piaggio took fourth, fifth and sixth 

positions. In a flat to falling market, it is very 

difficult for dealers to hit manufacturers’ targets. 

Ensuring they have the cash flow to support them 

through a season of quiet motorcycle sales could 

prove challenging for many. n 


NAMA | FOCUS 

NAMA Used 

Car Data 

While September saw overall average 

prices for used cars pulled down, October 

hit new highs, with the latest NAMA data 

showing mixed fortunes in recent months. 

I 

n September the average values 

of used cars sold at auction across 

the board increased from £4,604 

to £4,624, equivalent to a 0.4% increase. 

This small overall increase was at odds 

with the very positive increases for all the 

sectors (see table below). However there 

were a greater number of older, lower value 

cars sold in September causing the overall 

average price to be pulled down. 

As NAMA predicted there was a 

widespread and positive shift in buying and 

selling activity during September. However 

whilst there was an improvement in retail 

demand it was no more than what we 

would expect from the short seasonal uplift. 

The auction environment in September 

PRICE CHANGES SEPTEMBER COMPARED 

TO AUGUST BY CUSTOMER TYPE 

44 • AUTOMOTIVE INSIGHT • WWW.RMIF.CO.UK • DECEMBER ‘12/JANUARY ‘13 

saw a modest trade demand chasing 

a limited supply of cars. What was 

encouraging to see was the influx of dealer 

part-exchanges arriving in the first half of 

the month was met with a corresponding 

increase in trade demand. It was not 

until the last week in the month that we 

witnessed some buying caution. 

Whilst September experienced increases 

in prices for Manufacturer/Rental of 6%, 

Fleet of 6% and Dealer Part Exchange of 

12%, these increases were largely due to 

the influence of the plate change. If the 

influence of the plate change was removed 

the Manufacturer/Rental sector would have 

experienced a fall in prices of around 3% 

whilst the other two sectors would have 

August 2012 

September 

2012 

Manufacturer/Rental £12,900 £13,725 6% 

Fleet £7,425 £8,125 9% 

Dealer PXC £2,325 £2,650 12% 

SALES MIX BY CUSTOMER TYPE IN 

SEPTEMBER 

August 2012 

September 

2012 

Manufacturer/Rental 7,529 5,401 -39% 

Fleet 18,567 17,634 -5% 

Dealer PXC 50,379 55,955 +10% 

Total 76,475 78,990 +3% 

44 • AUTOMOTIVE INSIGHT • WWW.RMIF.CO.UK • DECEMBER ‘12/JANUARY ‘13 

% difference 

% difference 

benefited from small increases between 1% 

and 6%. 

The 39% drop in Manufacturer/Rental 

sector sales resulted from the relatively 

small number of unit sales. Fleet sales fell 

5%. The fall in sales for both sectors is due 

to the fact that de-fleeting did not take 

place until much later in the month so many 

of the cars sold were ‘carry-overs’ from the 

previous month. 

In the Dealer Part-Exchange sector 

cars arrived after the first few days of the 

month. This explains the 10% increases in 

units sold in September. The overall change 

in mix conspired to significantly increase the 

numbers of lower priced cars and it was this 

that has caused the price of all used cars 

sold at auction to increase by only 0.4%. 

Mike Pilkington, NAMA Vice Chairman 

commented “During the first two weeks of 

October auction activity slowed whilst the 

number of cars increased. These changes 

started to depress prices, but we expect 

prices to stabilise again in December.” 

October on a high 

The latest data from NAMA showed that the 

values of used cars hit record levels of sales 

for the year so far in October. However, with 

an overall slowing of the auction market 

during the last week in October and first 

week in November, it is likely that the usual 

seasonal market changes, with October the 

month traditionally when the market begins 

to slow, will prevail and that we are unlikely 

to see continued increases in values. 

October was the biggest selling month 

of 2012 so far with an increase of 12.6% 

when compared with the previous month. 

This large increase in sales can be attributed 

to the increase in stock available at auction. 

With the trade given a wider choice of

vehicles there was a greater propensity for 

them to buy. 

NAMA data shows that during October 

the average values of used cars sold at 

auction across the board increased from 

£4,624 to £4,724, equivalent to a 2.2% 

increase between September and October. 

The increase in prices can be entirely 

attributed to the large increase of quality 

under 2.5 year old cars sold at auction 

during October. It was these higher value 

vehicles that lifted the overall average price. 

In general, market conditions were 

considered to be remarkably stable 

considering that historically October is the 

month when the market begins to slow 

down and the sector sees the beginning of 

a gradual deterioration in selling conditions. 

The Manufacturer/Rental sector distorted 

the overall change in market prices due to 

the large increase of quality cars under 2.5 

years of age sold at auction during October. 

A more reliable measure of price change can 

be found in the performance of the Fleet 

and Dealer Part Exchange sectors, which 

were down 3% and 2% respectively. 

The underlying reduction in prices was 

made all the more evident when reviewing 

the price changes by age group and vehicles 

aged over 2.5 years reported a month-onmonth 

decline in values. 

Whenever prices are in seasonal decline 

there is always a greater likelihood that 

delaying a sale will simply result in a lower 

price being accepted at a later date. In 

October, the average ‘first time price’ was 

£8,100, whereas cars sold in that month 

that were re-entries went, on average, for 

£7,575, almost £525 less. Even though part 

of the price difference could be explained by 

the latter being offered in a slightly inferior 

condition, the message to vendors is clear – 

‘the first bid is generally the best bid’. 

Mike Pilkington, NAMA Vice Chairman, 

said: “The pace of the auction market began 

to slow at the beginning of November with 

prices in the Fleet sector down 4%. However, 

what was encouraging was that auction 

stock began to reduce and as this continues 

the rate of further price falls will also reduce. 

“Overall we believe that the underlying 

stock shortages are a continuing feature 

of the long term market and will become 

evident once again. We would also expect 

to see a few dealers start to proactively buy 

for January.” n 

PRICE CHANGES 

OCTOBER 

COMPARED TO 

SEPTEMBER, BY 

AGE OF CAR 

September 

2012 

October 

2012 

0.5 or less £17,550 £22,000 

0.6 - 1.5 Years £16,325 £17,025 

1.6 - 2.5 Years £11,525 £11,200 

2.6 - 3.5 Years 76,475 78,990 

3.6 - 4.5 Years £7,600 £7,175 

4.6 - 5.5 Years £5,850 £5,775 

5.6 - 6.5 Years £4,550 £4,475 

6.6 - 7.5 Years £3,475 £3,350 

7.6 - 8.5 Years £2,500 £2,475 

8.6 - 9.5 Years £1,850 £1,800 

9.6 - 10.5 Years £1,375 £1,350 


MRA | FOCUS 

Profit bigge 

While the headline news from the latest MRA Dealer Attitude Survey is that KTM, Triumph and 

Harley Davidson rate as the top motorcycle franchises, the underlying story is the growing 

concern among motorcycle dealers about the profitability of their dealership as market 

conditions remain difficult and dealer/manufacturer relationships become increasingly strained. 

I 

n this feature we take a look at the 

MRA survey – fast becoming one 

of the industry’s most accurate and 

influential insights into the UK’s motorcyce 

retail industry – in greater depth. 

Supply and Stocking 

With an increase of 0.1 from 3.3 to 3.4 in 

the all dealer average, and an even split of 

dealer networks scoring on or above this 

mark, it would appear that there has been 

some improvement overall in dealer views 

on their manufacturer’s policy for the supply 

and stocking of motorcycles. 

However, it is clear that Ducati dealers 

are much more negative as they report a 

drop in rating, down 1.1, and tumble to the 

bottom of the rankings table. 

On a more positive note, KTM offer a 

significant improvement of rating of 0.8 

since the last survey. Both Harley Davidson 

and Honda increase their scores by 0.2 

illustrating a degree of satisfaction. Triumph 

hold top spot in the rankings with a score 

of 4.2. 

Target Negotiation Process 

Despite seeing no change to the all dealer 

average at 2.9, 60% of dealer networks 

reported a fall in rating since the last survey 

when asked about their new motorcycle 

target negotiating process, indicating a 

degree of dissatisfaction amongst the 

majority of networks. 

With a fall in rating of 0.6, Kawasaki fall 

from joint second place in the rankings. 

Suzuki dealers also offer a more negative 

response, down 0.5 since the last survey, yet 

still sit second in the rankings chart. BMW 

reduce their rating by 0.4 and Ducati by 0.3. 

Ducati remain last in the table of ratings. 

Both Honda and KTM increase their 

scores by 0.2, but fail to reach the average 

score of 2.9. Triumph increase their rating 

and take first place position in the table. 

Sales Incentive Programmes 

With 70% of dealer networks scoring 

on or above the unchanged 3.4 average 

mark, it would seem that the majority of 

respondents show a degree of satisfaction 

when asked about their manufacturer’s 

performance in terms of sales incentive 

programmes. 

The results reveal a number of more 

negative views expressed; most notably 

from Ducati with a fall in rating of 1.1, 

and Ducati now drop to last place in the 

rankings. KTM saw their rating slip by 0.8 

yet still sit in joint second spot in the table. 

Other networks to respond more negatively 

since the last survey include Kawasaki down 

0.4, Suzuki down 0.5 and Triumph down 0.2. 

Dealer Profit Return 

In the current economic climate it is not 

surprising to see much improvement in 

dealer views concerning profit returns. 

There has been no change to the all dealer 

average which remains static at 2.8 with 

a 50/50 split of dealers scoring above 

or below this mark. However, 60% of 

respondents reported a drop in rating since 

the last survey. 

KTM dealers report the most significant 

fall in score, down 0.8, followed closely by 

BMW at minus 0.6 which takes them below 

the average mark. Other networks also 

show a degree of dissatisfaction including 

Kawasaki down 0.3 and Triumph down 0.2. 

Both Harley-Davidson and Piaggio 

Group improve their ratings which rose 0.2. 

Triumph retain first place in the rankings 

despite a drop in score. 

Future Dealer Profitability 

The results reveal that despite 70% of 

networks scoring on or above the 3.1 average 

mark, we see that 80% of dealers responded 

with a lower rating than in the last survey, 

which in turn has resulted in a drop of 0.1 

from 3.2 to 3.1 in the all dealer average. 

Looking at those networks which 

responded less favourably since the last 

survey, Ducati is the most notable with a fall in 

rating of 0.6. We also see a lack of confidence 

expressed by BMW (down 0.2), Kawasaki 

(down 0.2), Piaggio Group (down 0.2), Suzuki 

(down 0.3) and Triumph (down 0.3). 

KTM dealers responded with a drop in 

score of 0.7, and maintain first position in 

the rankings. Harley-Davidson improved 

significantly in rating, up 0.7 and rise above 

the average mark accordingly. 

Dealer Standards 

It is encouraging to note that there has been 

an increase to the overall average from 

3.2 to 3.3 which suggests that the majority 

of dealer networks are satisfied with the 

dealer standards set by their manufacturers. 

In addition, 60% of respondents scored on 

or above the average mark. 

Taking into account those dealers to 

respond with a fall in rating, Ducati is 

the most significant, down 1.1 and now 

sit last in the table of rankings. Despite a 


FOCUS | MRA 

st concern 

MRA survey reports 

downward rating of 0.2, Triumph still hold 

onto first place. KTM returned a drop in 

score of 0.3. 

It is pleasing to see an improvement from 

BMW, up 0.5 and as a result they rise up 

the ratings table to second place. Harley- 

Davidson and Yamaha increase their ratings 

by 0.3 and 0.4 respectively. 

Dealer Standards 

Relative to Reward 

The responses to whether manufacturer 

standards are realistic compared with the 

return on investment show no change to 

the all dealer average. They also reveal 

that only 40% of dealer networks either 

increased their score or remained static. 

However, with six out of the 10 networks 

scoring above the average mark, there is a 

degree of satisfaction amongst the majority 

of franchises. 

Once again, we see a dramatic decrease 

from the Ducati network, down 0.8 which 

takes this brand to last position in the 

ratings table. Kawasaki and Piaggio Group 

also offer a lower rating since the last 

survey, down by 0.3 and 0.2 respectively. 

Harley-Davidson make a significant 

improvement of plus 1.0 and climb the 

rankings accordingly. Despite a slight 

decrease in score, KTM hold on to first place. 

Value of MCI Get-On Programme 

The feedback from dealers, when asked 

about the value of the MCI Get-On 

programme supplying new leads to 

showrooms, results in a drop from 2.1 to 

2.0 in the all dealer average. Only 40% of 

networks increased their rating, so with 

generally low scores across the board, the 

MCI Get-On programme does not appear 

to be delivering results for the majority of 

dealer networks. 

BMW, Kawasaki and KTM are in joint last 

place in the rankings whilst Honda, Piaggio 

Group and Triumph respond with more 

negative scores since the last survey, down 

0.2, 0.2 and 0.3 respectively. 

Only Harley-Davidson make any 

significant improvement to their score, up 

0.4, yet still remain under the average mark. 

Manufacturers Listen 

With the all dealer average remaining static 

at 3.0 and 7 out of the 10 networks scoring 

on or above this point, it would seem that 

the majority of networks are fairly satisfied 

that their manufacturer takes dealer views 

and opinions into account. 

Despite this there are a number of 

franchises that returned falls in rating since 

the last survey. Ducati reduce their score by 

0.8 and fail to move away from last place in 

the rankings table. Suzuki fall by 0.4, whilst 

Kawasaki, Piaggio Group and Triumph 

returned negative responses of 0.2, 0.2 and 

0.3 respectively. Even so Triumph retained 

first position in the table. 

The Harley-Davidson network rose to the 

average point after reporting an increase 

in score of 0.5. BMW dealers showed more 

confidence with a rise of 0.3 and Honda 

increased by 0.2. 

Manufacturer Control 

The responses received from dealers when 

asked about the manufacturer’s controls 

and procedures placed on their business 

show no movement in the all dealer average 

remaining static at 3.2. We also see a 

contrast of views expressed in that 50% of 

dealers returned a downward rating, yet 

70% still gave an above average score. 

In respect of those franchises to fall 

in rating, Ducati dealers showed their 

dissatisfaction having reduced their score by 

1.3 and sit in last place. KTM lost first place 

after recording a drop in rating of 0.8. Both 

Honda and Piaggio Group reduced their 

scores by -0.2. 

More positively, the results reveal that 

Harley-Davidson climbed the rankings 

having increased their score by 0.9. 

Dealer/Manufacturer Partnership 

Taking into account some of the negative 

responses to other questions in the survey, 

it is no surprise to see a fall in the all dealer 

average from 3.7 to 3.6 when asked about 

the partnership that dealers have with their 

manufacturer. Contrary to this however, it is 

encouraging that 70% of franchises record a 

rating on or above the average mark. 

Dealer/manufacturer partnership is of clear 

concern to Ducati dealers with a substantial 

reduction in rating of 1.5. Other noteable falls 

in score were recorded by Kawasaki (down 

0.3), Piaggio Group (down 0.2), Suzuki (down 

0.4) and Triumph (down 0.3). 

KTM remain top of the rankings with a 

score of 4.5. BMW respond with the only 

notable increase of 0.3. 

General Business Relationship 

Little has changed in terms of the overall 

picture when dealers were asked about 

their ability to do business with their 

manufacturer on a day-to-day basis with the 

all dealer average staying at 3.6. Although 

only 3 out of the 10 dealer networks gave an 

increase in rating, 70% of them did record a 

score on or above the average point. 

We see that once again Ducati dealers 

responded with a substantial drop in score 

of 1.0 and remain last in the rankings for 

this question. Downward scores were also 

received from Kawasaki (down 0.3), KTM 

(down 0.3), Piaggio Group (down 0.2), 

Suzuki (down 0.2) and Triumph (down 0.2). 

However, of these only Piaggio Group still 

remain below the average score. 

BMW, Harley-Davidson and Honda all rise 

up the table of ratings having increased their 

scores by 0.2, 0.2 and 0.3 respectively. Triumph 

retain first spot in the rankings chart. n 


NAB | UPDATES 

NAB 

48 

The big issue - get your 

voice heard 

49 

Car insurance 

hits year low 


Stuart James 

IGA Director 

Tel: 07528 977 167 

stuart.james@rmif.co.uk 

50 

BAL in administration - 

a legal view 

The big issue – get your voice heard 

NAB has given a warm welcome to the Office dealing with sensitive business information 

of Fair Trading (OFT) decision to refer the and that some members might worry about 

investigation into the private motor insurance divulging such information. To give peace of mind 

market to the Competition Commission (CC). and assurance to members, we have set up a 

A NAB spokesman said: “This is a move mechanism to feed information into NAB which 

that we have publically supported and 

will ensure any intelligence we receive is passed on 

believe this will expose some of the external anonymously to the NAB working group. Anyone 

influencing factors that add operating cost to wishing to make a submission via this route should 

our members’ businesses. These additional send their mail to: Karen.Harris@rmif.co.uk 

costs in turn undermine the ability of our 

Alternatively any member of your NAB 

members to deliver a service able to meet the executive will be happy to receive submissions 

demands of today’s consumer.” 

directly. 

To help the process, NAB has set up a working We urge all members to engage and 

group to help relevant information reach the CC. respond whenever possible. This is your chance 

The goal is to make sure that member concerns to shape the way the supply of goods and 

and comments reach the CC. Your views are of services are governed in the coming years and 

the utmost importance and by telling us at NAB we are unlikely to see another investigation of 

what issues most concern you, we will be better this magnitude in medium to long term. n 

placed to fully understand those issues and so 

better represent you effectively throughout the • A copy of the provisional report can be 

period of the OFT investigation. 

downloaded either directly from the www.oft. 

We are more than aware that we will be gov.uk website 

Growing your business and making sales through social networking 

Tweeting, liking, sharing, trending: what does user has their own profile, friends and groups 

it all mean? How can you get involved? And that they communicate with on a daily basis. 

how can they boost your revenue and profits? 

In this article IGA & NAB Communications Online buzz equals sales 

Executive Philip de Ste Croix explains how What does this mean to you? Well, social network 

social networking can boost the value of your users talk. When they have bought a new item 

business and reach out to new customers. (or have received a good vehicle service!) they 

It’s the age of the social network and talk about it. Others read about it and share it 

we are here to try and help you understand with their friends. This activity replicates over and 

how this powerful marketing tool could be over. What if thousands of people were talking 

incorporated into your business. 

about your service or product and recommending 

With the successful pick up of Facebook and it to their friends? This grows awareness and 

Twitter, the world - business and personal - is awareness generates business. 

moving into a new social, sharing environment As with other marketing channels, managing a 

in which everyone is connected to each other. social network takes work on your half to generate 

interest. Facebook, LinkedIn, and Twitter could 

The power of social networking 

prove to be very effective in growing your business, 

For small and large business owners, it is important but it begins with building a trust between you 

to understand the power of social networking. and your actual and potential customers. The key 

Studies have shown that more than a quarter of the is active communication and you will win trust for 

time that people spend online, they are using social your business through that communication. 

networks, and that while online the vast majority of In essence, if there is one thing to take 

social network users are looking for something to from what a social networking website could 

buy. Half of them will make a purchase as a result of do for you it’s this – It could cost a business 

their social networking activities. Online word-ofmouth, 

not adverts, is key. 

is measured in the hundreds of millions. 

nothing to connect with an audience that 

Importantly, consumer interest is not created Obviously, having 600 million users ‘liking’ 

from the adverts seen on a social network your page on Facebook is a little optimistic, 

website. Instead, people spend their money but I hope it opens your mind to the possibility 

on services and products recommended and of connecting to a wider audience. n 

shared with them by their friends and groups. 

The most powerful aspect of social 

• For more information contact Philip de Ste Croix 

networking is that it is free for everyone. Each at 0845 305 4230 philip.destecroix@rmif.co.uk 


UPDATES | NAB 

Car insurance hits year low 

Motorists are paying almost 11% less for their 

car insurance than a year ago, research suggests. 

The average premium has fallen by 10.6% 

to £478, according to Moneysupermarket.com. 

Following a period of sharp rises in 2010 and the 

early part of 2011, the company said the cost 

of car insurance reached a peak of £554 in April 

last year. 

Kevin Pratt of Moneysupermarket said: “Car 

insurance inflation was a major issue in 2010 

and 2011, which led to a number of government 

inquiries to try and address the problem. Our 

analysis shows we are now seeing deflation, 

which is great news for motorists for now. 

“The main factor influencing the cost of car 

insurance is competition in the market between 

insurers. A few key insurance providers are 

looking to take on new business and are willing 

to offer low premiums to attract customers. While 

this competition continues, drivers will benefit but 

there is no guarantee how long it will last.” 

Although every part of Britain has 

benefited from the downward trend in 

car insurance prices, the average cost of 

cover varies considerably across the nation, 

Moneysupermarket said. Drivers in Greater 

London pay the highest premiums, with average 

costs of £748. North West England has the 

second highest prices, averaging £592, followed 

by the West Midlands, which stand at £516 

on average. Those in south Scotland enjoy the 

lowest premiums £309, around 59% less than 

the price paid by drivers in Greater London. n 


NAB | FEATURE 

Broker Assistance Limite 

This report from Tony Lowe, RMI Board Representative to NAB, is an opinion formed as a result of the R 

Limited. This is not a legal opinion and is for guidance only. Before taking any action individual 

T 

he RMI have been in dialogue with 

the Administrators of BAL since it 

ceased trading. The Administrators 

were appointed on the 10th October 2011 by 

Lloyds TSB Commercial Finance Ltd. We are now 

reporting the position as we see it. 

Overview of BAL 

BAL’s business model related to the management 

of claims on behalf of drivers/owners of vehicles 

who have been involved in a road traffic accident 

due to the fault of the other driver involved. BAL 

offered a complete claims management service to 

their clients which included sourcing replacement 

vehicle hire and repairers. BAL also sourced a 

solicitor to deal with the claim on behalf of the 

client if there was a personal injury element to 

the claim. BAL negotiated direct with the third 

party insurer in relation to the claim for hire 

charges and repair costs. The hirers and repairers 

effectively invoiced BAL through IVM who then 

passed that invoice on to the third party insurers. 

Once payment was made to BAL by the third 

party insurers, they then ensured that the hire 

company was paid directly and repairer’s invoices 

are paid to IVM. 

BAL was contracted to IVM to provide a 

network of accident repair garages to provide 

services to BAL clients. A great proportion of the 

cases were pro-active third party capture that kept 

third party claims cost-controlled for the clients 

of BAL. IVM engineered the claim, submitted the 

repair invoice, and received payment from BAL 

that subsequently pass-ported through to the 

repairer. 

IVM estimated that there was in the order of 

£1.5 million worth of outstanding repair invoices 

due for payment at the time the Administrators 

where appointed. 

Both the lead representative of the RMI (Tony 

Lowe of Impact Repair Centre Ltd) and Khalid 

Sheikh of KAG Ltd have sustained substantial 

losses as a result of this business failure. The 

directors of IVM disclosed their losses attributable 

to the BAL failure as in excess of £140,000. The 

IVM loss has not been audited by either Khalid 

Sheikh or Tony Lowe. We are advised these losses 

appear in their accounts. 

Background 

It is now unclear what the final outcome will be. 

Khalid, representing a group of repairers, started 

a request for funding in order that legal advice 

could be sought with a view to challenging the 

Administration. The RMI was also requested to 

look at the failure by various members and it 

was agreed at an early stage that both RMI and 

Khalid would work closely together in order that 

information could be shared. 

Whilst information has been shared, both 

parties have maintained their own legal advisors, 

placing separate pressure on the Administrators. 

From the start of the legal challenge the Directors 

of IVM have been fully cooperative with all 

requests for information. A full disclosure of 

relevant contract details that existed between 

IVM and BAL has been given by the lead Director 

of IVM, Steve Vare, who has attended when 

requested every meeting that was been required 

throughout these investigations, covering any 

costs incurred by IVM themselves. 

On the day of the insolvency IVM indicated 

that the various outstanding invoices fell into one 

of the following five categories: 

1. The repair invoice has already been settled by 

the third party insurer (TPI) to BAL but BAL have 

not passed payment on down the chain to IVM 

2. BAL have submitted the repair invoices to TPI 

but have not yet been paid 

3. Repairers have submitted repair invoices to IVM 

but they have not yet been passed to BAL 

4. Repairers have not yet raised their final invoice 

although the work has been completed and the 

vehicle returned to the client 

5. Repairers have not yet raised their final invoice 

as the work has not been completed and the 

vehicle has not been returned to the client 

Some repairers sought recovery directly from 

the third party Insurer if they knew who that 

was, and some held on to vehicles not completed 

until such time as the third party insurer paid the 

repair account in full. Many repairers have been 

successful in making some recovery in varying 


FEATURE | NAB 

d (BAL) in administration 

MI working closely with the Directors of Inform Vehicle Management (IVM) and Khalid Sheikh of KAG 

members and/or companies should consider taking their own independent and legal advice. 

ways. The RMI also published guidance to assist 

repairers with the recovery of work in progress 

jobs, and this helped reduce some repairers’ 

exposure. 

Clearly the RMI could not and would not be 

able to advise at that time on any action that 

could be seen to, or prove to have, adversely 

affected the insolvency and the agent’s ability to 

recover funds on behalf of the alleged secured 

creditor Lloyds TSB Commercial Finance Ltd. This 

approach was essential as the RMI doesn’t leave 

itself open to costly litigation that subsequently 

erodes members’ funds. 

Early on it was disclosed to us by IVM that 

when BAL missed a payment run, IVM - being 

pressured by a few repairers and as a result of 

some repairers struggling for cash-flow - decided 

to make payments in a considerable number of 

cases directly out of their own current account, 

not the clients’ account. The decision to draw 

from their own current account, we were 

informed, followed a conversation between a 

Director of BAL and IVM during which IVM was 

assured that BAL was only experiencing temporary 

cash flow difficulties. This reassurance carried 

some credit with the IVM Directors and this is why 

they used their own funds, not clients’ funds, to 

make payments to repairers who just couldn’t 

fund their business without these payments. This 

is why and how IVM have sustained a loss as once 

they had paid the repairer they could not then 

recover from BAL after they ceased trading. 

The RMI has of course been in close contact 

with the administrators who are: J M Titley and M 

Poxon, Leonard Curtis Recovery Limited, Hollins 

Mount, Hollins Lane, Bury, Lancashire, BL9 8DG 

Email: recovery@leonardcurtis.co.uk 

jennifer.rayner@leonardcurtis.co.uk 

Tel: 0161 767 1250 

For Decision 

The important question is, do the creditors, be 

they IVM or the repairers as a group, have an 

appetite to fund the costs of challenging the 

administrators authority in this case? 

If the repair community wants to take this 

case to court we are advised that the case could 

succeed, but with the odds of success at 50/50 at 

this stage. We are advised that an initial funding 

requirement would be around £50,000 for our 

legal fees, and that in the event of us not being 

successful we would be required to pay the 

other side’s legal costs also which would most 

likely match ours. I estimate a total fighting fund 

of around £125,000 needs to be raised by the 

repairers involved. 

It should be noted that whilst there was a 

significant amount of repair costs outstanding 

at liquidation, the accounts prepared by the 

administrators show a significant amount of 

assets available to settle any judgement should 

the court rule in our favour. These are currently 

being paid directly to the alleged secured creditor. 

Costs to date have been covered by a small 

fighting fund raised by Khalid and the RMI, 

which have covered their direct legal costs. 

I would estimate that direct costs have now 

exceeded £10,000, all for legal advice. Other 

than legal advisors, no costs have been claimed 

by individuals for attending meetings or travelling 

to meetings at various locations. We confirm the 

IVM directors have attended meetings, when and 

where required, at no cost. 

Any decision as to whether we move on to the 

next legal stage will depend on the desire of the 

repair community to raise the required funding to 

support any action. 

We feel that there is sufficient evidence to 

request an investigation into the Directors of BAL 

and these should be reported to the appropriate 

authorities. 

It is our opinion that the Directors of IVM 

didn’t knowingly and never intended to be 

involved in any business failure; they have 

sustained personal loss as a result of using their 

own business funds to pay outstanding BAL 

invoices. They have been extremely cooperative 

and supportive throughout the process of 

information gathering. 

The RMI will be looking at ways that might 

in the future give a greater degree of security 

of repairers’ funds that are managed by 

intermediaries, and we intend to pursue this 

in conjunction with the ongoing Competition 

Commission enquiry that we are involved with. n 

• If you are interested in joining and subscribing 

towards a fighting fund email tony.lowe@rmif. 

co.uk 


NAB | FEATURE 

Courtesy cars, fines and speeding tickets: 

where do you stand? 

Few things are more irritating than having to pay a parking fine on a car that you were not even driving 

at the time. Things get more annoying – and potentially a lot more serious – if “your” car comes back 

from loan and a few weeks later the police come knocking because it has been spotted speeding. 

F 

or garages that offer customers courtesy 

vehicles, problems like these are all too 

real. So what do you do when your 

courtesy car is returned with an unpaid parking ticket 

or a speeding fine? Here the RMI’s legal team give 

crucial advice to ensure you and your business do not 

end up being penalised for somebody else’s actions. 

Criminal Motoring offences 

This is the most serious situation to find yourself in as 

there are a number of possible offences that can be 

committed in your vehicle, such as camera enforced 

offences including speeding offences, or failing to 

stop at a red light. In these instances you, as the 

vehicle’s registered keeper, will receive a ‘Notice of 

Intended Prosecution’ or NIP, within 14 days of the 

offence. You have a duty to identify the driver of the 

vehicle and return the NIP within 28 days EVEN IF 

YOU DO NOT KNOW WHO WAS DRIVING. 

Failure to return the NIP, or a failure to identify 

the driver, are separate offences which can lead to 

a fixed penalty or a current maximum sentence of 

£1,000 and six penalty points. 

Council Enforced Offences and 

Penalty Charge Notices (PCN) 

Councils now do the work of the police for various 

minor motoring offences. As a result garages need to 

be vigilant as a number of private landlords produce 

notices deliberately similar to those produced by local 

councils in order to obtain payment. 

Any council enforced Penalty Charge Notice 

(PCN) should have clear details on how to appeal 

both to the council concerned as well as to the 

independent tribunals PATAS and NPAS. If this is 

not clearly stated then you have probably received 

a demand for payment from a private landlord. 

Where a genuine council parking fine has 

been issued, if payment is not made within 28 

days the council concerned will have between 

28 days and six months to serve a Notice to 

Owner (NTO) allowing the vehicle owner to make 

representations regarding the PCN to the council 

concerned. This is important, as it is the vehicle 

owner who is liable to pay the parking fine and 

not the driver. However, the owner can make 

representations to the council regarding the PCN 

as to whether it was validly issued. The owner can 

only avoid liability if: 

1. The PCN was incurred by a person who was in 

control of the vehicle without the consent of the owner 

2. The vehicle was hired under a vehicle hire 

agreement and the agreement contains a 

statement signed by the hirer acknowledging their 

liability for a PCN issued during their hire period 

These are very limited situations and depend 

on the agreements in place when a courtesy car is 

provided. Garages would be advised to review the 

agreements in place when providing a courtesy car to 

ensure that the driver has accepted liability for PCNs. 

Do not ignore a PCN. When a PCN is received 

assume you will be liable unless proven otherwise. 

If you should be required to settle any PCN it is 

likely that this amount can be recovered from the 

driver of the vehicle. If you receive a PCN: 

1. Make sure it is a council enforced PCN and is 

not from a private car park 

2. Review your hire/courtesy car agreement to see 

if the driver accepted liability for the PCN 

3. Contact the driver and investigate the facts of 

the case 

4. Admit the PCN or challenge it informally with 

the council and then through either PATAS or 

NPAS as appropriate 

Private car parks 

Generally, parking on private land is governed by 

contract law principles. Provided there are clear 

terms and conditions displayed in the car park 

upon entry a driver agrees to be bound by these 

when they park and leave their car there. 

Parking tickets on private land cannot lead 

in any way to criminal proceedings and they are 

not a ‘ticket’. They are a notice saying that they 

intend to take you to the civil court for trespass, 

in effect, breach of contract. A parking operator 

has no legal right to recover a parking fine 

without first taking court action against you for 

breach of contract. Any legal liability to argue the 

case or settle any amount lies with the driver. 

Any claim must be brought by the owner of the 

land unless the parking company can show that 

they act as the owner’s agents. The burden of proof 

is on the land owner. You can ask them to prove 

that a trespass has occurred, that there are clear 

terms and conditions displayed and who the driver 

was if you are not sure. Should they not be able to 

prove who the driver was, there is little chance that 

they will succeed with a claim for breach of contract. 

As this is a private dispute there no automatic 

requirement to disclose the details of the driver. 

The land owner can request these details from 

you, but if you refuse to provide the information the 

land owner’s options are limited. They can make an 

application to the court for an order requiring the 

disclosure of the driver’s details. If the court orders 

disclosure then there is a risk that you would be 

liable for the legal costs of obtaining the order. If 

you receive a “fine” from a private car park: 

1. Contact the private land owner informing them 

that whilst you are the registered keep you were 

not the driver at the time. Do not provide the 

driver’s details immediately 

2. Pass details of the fine to the driver requesting they 

deal with the matter or their details may be disclosed 

Data Protection Act 1998 (DPA) 

A key issue is whether garages are allowed to 

disclose the details of the drivers of their vehicle. 

You have a duty to protect personal data under 

the Data Protection Act 1998 and this normally 

limits when garages can disclose personal data. 

However, where a disclosure is required either 

by law, or in connection with legal proceedings, 

then personal data is exempt from the rules 

preventing non-disclosure. This applies even if 

proceedings have not yet started. 

If proceedings have started then obtaining 

confirmation of this from one party and the court 

will be enough to provide protection. It is less clear 

where the request is made prior to legal proceedings 

being instigated. We would always advise that 

garages initially refuse to provide any details until 

the other side threatens legal proceedings in writing, 

but at the same time pass the correspondence to 

the driver for them to deal with. n 

• If you have any concerns on any of these issues, 

the RMI legal telephone advice line is there to 

support members on 0845 8399205 


UPDATES | FORECOURT 

Rates nail in the 

coffin for rural 


FORECOURT 

53 

Rates nail in the coffin 

for rural forecourts 

54 

PRA fights for its 

members through 2012 

55 

Two tier pricing 

unfair says PRA 

58 

Forecourt criminals 

under attack 

Brian Madderson 

RMI Petrol 

brian.madderson@rmif.co.uk 

Julian Phillips 

Head of Commercial Services 

julianphillips@rmif.co.uk 

filling stations 

Struggling owners of rural filling stations reassessment may have been the last chance 

have been dealt another bitter blow by the saloon for many small sites. Without a 

Government. Deferring the revaluation of reduction in their rates bill, they will be 

business rates from 2015 to 2017 will cost unable to invest in their businesses and be 

them dear. “This will effectively kill off any forced to close. 

hopes of cost reductions. Rural filling stations “The fuels crisis in March featured panic 

are now likely to close at the rate of more buying, which saw many forecourt stocks 

than two hundred every year,” says PRA drained in a matter of days across the UK. 

Chairman Brian Madderson. 

With 6,000 fewer forecourts and low stock 

Currently, rateable values are based on levels, Government was rocked by the lack 

fuel volumes and margins recorded on April 1 of resilience in our vital supply of retail road 

2008 when the economy was at peak levels. fuels. 

Since then, a combination of the recession “As a result, the Department of Energy 

and low supermarket pricing has wiped out and Climate Change commissioned Deloitte 

yet more independent forecourts as fuel LLP to conduct a study into why so many UK 

volumes fell and margins crashed. 

forecourts continued to close and what could 

Last year PRA, together with Barber 

Government do to help arrest and 

Wadlow, produced a report 

reverse this trend. 

identifying around 500 small, 

“Yet once again, this 

rural filling 

Government 

stations that 

has failed 

were at risk 

to engage 

of closing 

with industry 

their forecourt 

to consider 

operations. They 

the full 

were suffering 

consequences of 

from exceptionally 

their rates decision. 

high rating 

They have scored 

assessments that 

another own 

unfairly penalised 

goal, seemingly 

the smaller 

in direct conflict 

operators. 

with the clear 

Madderson says: 

need for future 

“Government not 

fuels resilience, 

only ignored our 

particularly in rural 

warnings on this 

communities. 

matter but has 

“It will not 

now increased the 

be long before 

financial pressures 

the only petrol 

on independent 

stations in the 

forecourts by 

UK exist in 

offering no 

major towns 

prospect of rate 

and cities, 

reductions for 

eradicating 

a further four 

sustainable 

years. The 

living in rural 

2015 rating 

areas.” n 


FORECOURT | UPDATES 

PRA’s non-stop 2012 

The past 12 months has been a hectic one for 

the PRA with headline hitting stories, victorious 

campaigns and an ever-growing membership base. 

The constant theme for the whole year has 

been the PRA campaign aimed at convincing the 

government to cancel proposed future duty and 

VAT rises on fuel. The battle goes on with the PRA 

currently lobbying to halt the proposed January 

1 2013 duty increase of 3ppl and the proposed 

1 April 2013 increase which is expected to be 

around 2ppl. 

In all that will add an extra 7pence on a litre of 

fuel in just three months! 

Rural Fuel Deserts 

A second major campaign for the PRA has 

been to highlight the plight of the independent 

forecourt as it struggles to win the unfair fight 

against the hypermarkets and an unbalanced 

business ratings system 

The nation has seen the number of forecourts 

in the country collapse from 40,000 in 1969 to 

well under 10,000 now with hundreds more 

– especially the highly vulnerable rural sites – 

shutting up shop for good every year. 

The PRA has consistently campaigned on 

Four arrested in fuel fraud operations 

Three people have been arrested and thousands 

of litres of illicit fuel have been seized by HM 

Revenue and Customs (HMRC) during a large 

scale operation against suspected fuel fraud. 

Customs officers and police searched three 

domestic premises in Belfast, seizing a computer, 

documents and business records, while two 

illegal filling stations in Belfast and Lurgan 

were dismantled and 2, 200 litres of illicit fuel, 

forecourt pumps and equipment seized. 

this issue warning that “fuel deserts” are now 

springing up across the country – areas in which 

rural forecourts have been forced to close and 

which have left motorists having to drive dozens 

of miles before they get to their nearest pump. 

OFT 

All year the PRA has been heavily engaged with 

the Office of Fair Trading (OFT). In January the PRA 

submitted its report to the OFT calling for a new 

and comprehensive study into the UK fuels market. 

In May the OFT provisionally turned down the 

idea of such a study but by mid to late summer, 

following constant pressure from the PRA, the 

OFT asked for evidence to be submitted regarding 

the fuels market. The OFT intends to publish its 

findings in January 2013. 

Fuel Crisis Strikes 

March brought the fuel crisis with the PRA 

once again playing an active part in putting 

the argument for the independent retailer in 

newspaper, radio and TV reports. During the 

dispute, working with Background2, the PRA was 

also the only organisation providing Government 

and the media with the very latest daily fuel 

John Whiting of HMRC said: “It is wrong that 

honest businesses should be undercut by criminals 

and we are targeting those individuals and groups 

doing most economic harm in our communities. 

“The huckster sites we dismantled were 

operating at an unfair advantage over legitimate 

filling stations by selling illegal fuel at a reduced rate. 

“We continue to work closely with our 

colleagues in the Organised Crime Task Force to 

stop the damage this criminal activity causes. We 

volume changes as the panic fuel buying spree hit 

the nation’s forecourts. 

The fuel rush was quickly followed in April by 

fuel prices spiking at new and unwelcome highs 

with diesel and unleaded reaching record highs of 

147.93ppl and 142.48ppl respectively. 

In May the Government Policy Unit was 

studying the idea of CCTV/ANPR (automatic 

number plate recognition) on forecourts as a 

way of detecting and deterring unlicensed and 

untaxed drivers, technology that the PRA has 

long advocated and which many of our members 

already use on a daily basis. 

Duty and VAT Campaign 

One of the year’s biggest campaign launches 

came as the PRA joined forces with the 

Taxpayer’s Alliance and The Sun newspaper to 

protest against excessive fuel and VAT rates 

on fuel at the pump. The campaign focused 

on displays at PRA member forecourts which 

detailed exactly how much the Government took 

out of each litre of fuel. 

The campaign was hugely successful in telling 

motorists that it was not the forecourts that were 

making money out of rising pump prices, but the 

Treasury. 

The campaign made it quite clear to every 

motorist in the UK – some 30million of them – 

that out of every £30 spent on fuel at the pump, 

60% (£18) goes to the Treasury, 40% (£12 goes 

to the oil company), and just £1 goes to the fuel 

retailer! 

With The Sun newspaper and MPs supporting 

the PRA/Taxpayer’s Alliance campaign, huge 

media coverage was generated. 

History was made in October with the very first 

PRA Roadshow and forecourt exhibition being 

staged in Belfast in Northern Ireland, attended by 

more than 150 visitors and sponsors. n 

would encourage anyone with information about 

activity they suspect may be linked to fuel fraud to 

contact our Customs Hotline on 0800 59 5000.” 

In unconnected activity, a diesel laundering 

plant in Coalisland was uncovered capable of 

producing 1.4 million litres of illicit fuel a year, 

evading almost £950,000 in revenue. Over two 

tonnes of toxic waste, 3,000 litres of illicit fuel, 

as well as pumps and equipment were removed 

from the site. n 


UPDATES | FORECOURT 

Safety first scoops 

Britrisk a top award 

The Britrisk company, which provides raising compliance standards. 

health and safety services for 

“Our approach to health and 

forecourts, has been named winner safety is about making safety easier 

of the Association for Petroleum and for our clients to manage – for 

Explosives Administration. 

example by reducing paperwork and 

Sponsored by Franklin Fueling bureaucracy – and doing so on a 

Systems, the APEA Health and pragmatic, cost-effective basis. 

Safety Performance Award reflects “We understand that fuel retailers 

the judges’ view that Britrisk Safety operate in an ultra-competitive 

have the best managed health and business environment, and that 

safety or environmental programme fuel products are unseen, difficult 

or system, demonstrating the to manage, closely regulated and 

greatest beneficial impact on the potentially lethal. That’s an explosive 

organisation, its customers and the mix, so we encourage our clients to 

petroleum retailing industry. 

look at safety as an investment in their 

Tom Sterling, Managing Director business, not a drain on resources.” n 

of Britrisk Safety, said: “We are 

delighted to have received this 

award and to have been recognised 

by the APEA in this way as it 

endorses our approach of keeping 

safety management simple, thus 

Two tier fuel pricing unfair 

Drivers who buy fuel at motorway prices for Esso brand fuel was very 

service areas are getting a raw similar. 

deal the PRA claims warning that Madderson continued: “Two 

motorists are sometimes paying tier pricing was just one of the 

up to 14ppl more on a motorway many areas for concern raised by 

than they would if they were to independent fuel retailers to the 

turn off at the next exit and use Office of Fair Trading (OFT), during 

the same big name supplier on a a recent “call for information”, 

major road. 

which indicated that the UK fuels 

It is a situation that has to market was not working properly. 

stop, says PRA Chairman Brian 

“It is essential that the OFT 

Madderson: “Motorway Service respond to the many complaints by 

Areas owned or supplied by major confirming that they will undertake 

oil companies continue to extort a new Market Study under the 

their customers by pricing fuel Enterprise Act 2002 when they 

much higher than at their standard present their findings in January 

company-owned sites.” 

2013. 

He quotes recent data from 

“The UK wholesale market for 

Experian Catalist which shows that road fuels remains volatile, and as 

Shell brand petrol purchased at a we speak the Government plans 

Motorway Service Area was 14ppl to hike fuel duty by 3.02ppl on 1 

more expensive than Shell brand January 2013. The prospect of a 

petrol purchased at one of their further 2.00ppl on 1 April are both 

standard sites. Diesel was as much potentially crippling to household 

as 12ppl more. The gap between budgets.” n 




FORECOURT | UPDATES 

Fairbanks wage war 

on forecourt thieves 

Forecourts are fighting back 

against brazen thieves who make 

daylight robbery their stock in 

trade. For around £3.50 a day, 

garages can have service that 

keeps track of every drop of fuel, 

allowing them to shine a spotlight 

on theft as soon as it happens. 

The technology is the 

brainchild of wetstock experts 

Fairbanks, who want to put a stop 

to the crime which can cost a 

forecourt thousands of pounds in 

a matter of minutes. 

Gareth Jenkins, Fairbanks 

business accounts manager, is 

worried that far too many garages 

are falling victim to these villains. 

He said: “It’s a growing problem 

and the thieves are becoming 

more and more confident. They 

drive up to a forecourt, park over 

the diesel manhole cover, drop a 

hose and off they go. 

“In the early days they would 

pump it out at the rate of 40 

to 50 litres a minute and since 

they needed to be on site for 

a few hours they tended to be 

there in the dark. Now they have 

upgraded their equipment and 

can pump fuel out at the rate of 

up to 1,000 litres a minute. The 

forecourt staff will have barely 

turned their backs before the 

job is done and the thieves are 

off with at least 8,000 to 10,000 

litres of fuel.” 

Fairbanks are the experts in 

wetstock management. They 

connect the fuel storage with 

the till, so that every transaction 

is recorded and reconciled. The 

information is transmitted by 

the forecourt’s broadband to 

Fairbanks throughout the day. 

Any sudden, unexplained loss will 

immediately ring alarm bells. 

“We can very quickly see if 

there is a problem, such as a 

dramatic drop in stock that is not 

due to sales recorded at the tills. 

We will alert the owner as soon as 

there is something wrong. 

“Outside a strobe light and 

alarm will also be activated, 

telling the thieves that they have 

been rumbled. Once they realise 

that this technology is in place 

they know to leave that forecourt 

well alone.” 

Fairbanks can fit the latest 

technology for what works out at 

around £3.50 a day. 

The same technology can also 

help owners of several sites to 

keep track of what is happening 

to the stock while they are away. 

Details of stock levels, gauge 

alarms and remaining days’ stock 

can be viewed on a mobile phone 

or a laptop in an instant, allowing 

them to keep a very close eye 

on cash flow. Any leaks will be 

very obvious or a sudden rise in 

demand catered for. 

“We always suit our service to 

the customer. Since we build the 

system ourselves we can find out 

what works best on an individual 

basis. Some forecourts will prefer 

to have the information we have 

collected once a day, for others 

we can relay the details across 

every 15 minutes. There is plenty 

of flexibility built in,” added 

Gareth. 

Fairbanks are also leaders 

in fuel temperature analysis, 

allowing understanding of 

the impact changes in fuel 

temperature have on the stock 

volume. Gareth explained: “It may 

be that the fuel is stored on a site 

that has a high water table, so 

it cools down and loses volume 

once it is delivered. Our system 

will show that this is happening 

and the forecourt owner can be 

aware of the impact this has.“ 

With the detailed information 

Fairbanks can provide, no 

forecourt owner should be left 

in the dark where fuel stocks are 

concerned as every litre will be 

accounted for. The days of profits 

draining away through oversight 

are over. n 

PRA calls on Government to 

scrap crippling regulation 

The PRA has called on Business and 

Enterprise Minister Michael Fallon 

to come to the aid of battered 

forecourt shop owners by scrapping 

“onerous and ill-considered” 

regulation. 

PRA Chairman Brian Madderson, 

in an open letter to Mr. Fallon, MP 

said petrol retailers were being ‘hit 

by wave after wave of regulation’ 

which threatened businesses at one 

of the worst economic times for 

small businesses owners in the UK. 

“Government should be focusing 

on restoring our economic fortunes. 

It is vital that misguided policies are 

rejected,” wrote Mr. Madderson. 

Latest figures show that that 

6,000 forecourts have closed since 

1998 and that 400 closed last year 

alone. 

Specifically, PRA called for 

Government to focus on restoring 

economic fortunes by reforming the 

payment system for fuel duty so that 

it is fairer for motorists. This would 

also help small businesses now 

facing a major decline in fuel sales. 

Brian also called on the 

government to work with retailers 

to crackdown on illicit tobacco trade 

which robs legitimate shop owners 

and benefits criminals. 

A PRA poll of hundreds of petrol 

retailers across the UK shows that 

independent retailers are pessimistic 

about the economy and concerned 

about how government regulations 

will adversely affect them: 

• 56% see no progress in the UK 

economy compared to last year. 

• 62% believe that the illicit trade 

in tobacco products is having a 

negative impact on their business. 

• 88% believe that a plain 

packaging policy would make 

it easier for forgers to produce 

counterfeit cigarettes. 

• 65% believe plain packaging for 

tobacco products would negatively 

impact their businesses. 

• 73% believe the government 

has gone too far with tobacco 

regulations. 

“These small retailers, their fuel 

volumes and margins under extreme 

pressure, are concerned that 

Government might force changes 

which are neither helpful to the 

tobacco issue nor helpful to their 

convenience shop sector,” added 

Brian Madderson. n 


ADVERTORIAL | FORECOURT 

Wayne Come Out Winners 

When it came to replacing his ageing petrol pumps, Andrew Lawrence of Lawrences Garages, was 

prepared to shop around. When he compared price, reliability and the reputation of those in the 

market he was left with an obvious choice – Wayne UK. 

“ 

I’ve had no cause to regret my 

decision,“ said Managing Director 

Andrew, “If I had to rate them out of 

ten they would be at least nine and a half!” 

His company has five garages in Norfolk, four 

needed new equipment and in 2011 he began 

work to replace the pumps at two. “That contract 

went very well, they did everything we wanted 

them to do, on time and with great efficiency. We 

couldn’t fault Wayne, so we had them back to do 

the others too. 

“The service has been excellent, I can count on 

one hand the number of times I have had to call 

out an engineer, which speaks volumes in itself. 

The pumps are extremely reliable, the customers 

are happy and the cost of the whole thing was very 

competitive. It has to be, in an industry like ours, 

but I am very pleased with the way it all went.” 

Wayne pride themselves on being able to offer 

individualised service and repair packages tailored 

to the needs of each forecourt owner. Teams of 

mobile engineers are available 7 days a week, 

they carry a wide variety of parts on their vans, 

to the extent that they boast an unusually high, 

above 90%, first-fix repair rate. It is very rare for 

a Wayne engineer not to be able to complete the 

job on the first call out because the replacement 

part is not on the van. 

Soren Powell-Holse, of Wayne, said: 

“Our engineers take great pride in their 

professionalism, their ability to work on all makes 

of equipment and for maintaining the very 

highest rate of first time fix. Our engineers are 

also empowered to make their own decisions, to 

do what needs to be done to get a forecourt back 

up and running as quickly as possible.“ 

The company makes sure that engineers are 

trained to deal with all makes of pumps, not 

just those supplied and fitted by Wayne. “Our 

engineers have hundreds of years of experience 

between them on all major makes and models of 

equipment,“ added Mr Powell-Holse: “A system 

of continuous training ensures that our service 

personnel are kept up to the mark on the latest 

technological innovations and equipment. 

“We offer different service, repair and 

maintenance contracts according to the needs 

of our clients. But commonly if there is a serious 

health & safety issue or significant impact on the 

forecourt’s ability to trade, then we get to the 

site straight away.” n 


REGULARS | LEGAL ADVICE 

Commission-led 

sales - new rules 

REGULARS 

60 

Commission led sales 

– new rules 

61 

Workplace safety a 

must say Allianz 

62 

HR Q and A – the 

lowdown on contracts 

Are sales staff cutting corners to meet targets – 

and are customers missing out as a result? 

Worries over commission-led sales 

recently led to the Financial 

Services Authority (FSA) carrying 

out a review of commission-led sales and 

the review has thrown up a number of 

concerns. In response the FSA has drawn up 

new guildelines. 

The FSA reports: “We acknowledge 

that firms may wish to incentivise their 

employees but this should not be at the 

expense of the consumer.” 

The FSA has highlighted what it sees as 

problems with commission-led sales that 

need to be addressed and what it sees as 

evidence of poor practice: 

• Most firms did not properly identify how 

their incentive schemes might encourage 

their staff to mis-sell. 

• Many firms did not understand their own, 

highly complex incentive schemes, which 

also made them harder to control. 

• Firms did not have enough information 

about their incentive schemes to understand 

and manage risk. 

• Most firms relied too much on routine 

monitoring rather than risk based monitoring. 

• Some firms had sales managers with 

a clear conflict of interest that was not 

properly managed. 

• Many firms had links to sales quality built 

into their incentive schemes that were 

ineffective. 

• Some firms had not done enough to 

control the risk of potential mis-selling in 

face-to-face situations with the customer. 

New Rules 

The new guidance set out ways firms can 

comply with the FSA rule book and how the 

FSA would expect them to behave. Broadly, 

the FSA would expect a business to: 

• Properly consider if their incentive 

schemes increase the risk of mis-selling and 

if so how. 

• Review whether their governance and 

controls are adequate. 

• Take action to address any inadequacies 

– this might involve changing their 

governance and/or controls, and/or 

changing their schemes. 

• Where risks cannot be mitigated, take 

action to change their schemes. 

• Where a recurring problem is identified, 

investigate, take action and pay redress 

where consumers have suffered. 

The review covered financial incentives 

but the FSA would expect firms to manage 

risk from sales targets and performance 

management too. They also point out that 

incentive schemes may not just impact sales 

but also affect complaints handling, claims 

processing, and customer retention. 

Whilst the FSA review concentrated on 

the retail finance market including banks, 

building societies and insurance companies, 

the implications are far wider. 

The FSA will use the findings to tighten 

up their supervision of firms in relation to 

their Principle Business Rules and this will 

not just include the retail financial services 

market but the secondary insurance one 

too. They will expect all businesses to adhere 

to the rules and put practices in place to 

avoid mis-selling and consumer detriment 

where staff are financially incentivised. 

The paper stops short of barring 

commission led sales of financial products. 

However, this is likely to start a heated 

debate about the rights and wrongs of 

this type of sales and more pressure from 

the consumer lobby to stop the practice. 

Further, the FSA have stated quite clearly 

that this is the start of a programme to 

address the risks they perceive to consumers 

of sales incentive schemes. n 


ALLIANZ | REGULARS 

Workplace safety is vital in 

protecting your staff, your business 

and your business reputation 

Health and safety often gets satirised as being “over-the-top” and gets the blame for 

spoiling the fun. Headlines would suggest that health and safety can put a dampener on 

everything from having bunting at a street party, to playing with conkers in the playground, 

to how to insert the pin into your remembrance poppy. But while there are plenty of jokes 

about the UK’s approach to health and safety, it’s something you can’t afford to laugh about. 

In this feature Allianz looks at the key areas employers need to be take seriously, to ensure 

staff and customers are safe, and that Health and Safety legislation is complied with. 

Workplace accidents can cause 

additional work and delays as well 

as reputational damage which will 

affect the success of your business. Add to that 

the possible implications of breaching health and 

safety regulations, and you could be looking at a 

significant fine or even a prison sentence. 

Taking health and safety seriously may also 

help to protect your business against fraud. 

Insurers are noticing a shift in this crime, with 

more fraudulent claims for slips and trips being 

reported. 

Whether you implement the right health and 

safety guidelines primarily so as to safeguard 

your employees and customers or to reduce 

the chances of a fraudster trying it on, a robust 

approach to health and safety will also benefit 

your business. 

These tips will help create a safer workplace: 

• Understand your legal obligations 

The Health and Safety Executive (HSE) 

provides advice and guidance on a business’s 

responsibilities to its employees and customers. 

As well as requirements for all employers, it can 

also provide specifics for different trades, for 

example the motor vehicle repair industry. More 

information can be found at www.hse.gov.uk. 

• Keep the premises safe 

A risk assessment will identify any significant 

hazards and what needs to be done to eliminate 

or reduce them. Employers need to provide this 

information to employees too, and keep a signed 

record of any relevant training. 

You should also ensure that all equipment 

is in good safe order. For some items it may 

be necessary to have regular inspections to 

determine how often, and by whom, these 

inspections should be carried out. 

• Create a health and safety culture 

If you joke about health and safety, your employees 

will do the same, so make sure it’s taken seriously. 

Arranging relevant training and putting in place the 

right processes for inspections and risk assessments 

will help health and safety become part of a firm’s 

culture. You should also encourage staff to draw 

your attention to any health and safety issues they 

may have spotted in the workplace. 

• Be prepared for accidents. 

If an accident does occur, it’s essential that it’s 

documented as thoroughly as possible. Taking 

witness statements and, if applicable, taking 

photographs is good practice. Having these 

processes in place helps to create a professional 

image, which may deter a fraudster, but it can 

also help if there’s an insurance claim. With more 

details recorded at the time of the accident, 

determining liability and, where applicable, 

quantum will be easier and quicker. n 

• Allianz Insurance’s free Risk Director website 

contains information to help you understand your 

health and safety responsibilities. For more details 

visit www.riskdirector.co.uk 


REGULARS | RMI HR 

RMI 

HR 

RMI HR is a complete HR system at your fingertips, 

unique in its design as it is written specifically for 

the Automotive Industry. You now have access to 

leading processes and practices, enabling you to 

recruit, measure and retain your people as well as 

guiding you professionally and effectively through 

the complexity of employment and consumer 

legislation. www.rmif.co.uk/members/hr 

Q 

Do I have to provide a contract of employment? 

A 

It is fairly common in the motor industry for employees 

not to be provided with employment contracts. For some 

it is simply a matter of not getting around to it, for others 

they may not realise the legal requirements so what does the law 

say? The Employment Rights Act 1996, which is the centrepiece 

of legislation in employment law, provides a legal requirement 

to provide all employees with a written statement of particulars. 

This is not a fully fledged contract but written principal terms and 

conditions covering the basic requirements including salary, work 

location, entitlement to annual leave etc. If an employee does 

not have either a statement of principal terms or an employment 

contract, the employer is in breach of the law and the employee 

could make a complaint to a tribunal. The cost would be between 

two and four weeks’ gross salary. There are template contracts 

available from the RMI website and if in doubt, call the RMI advice 

line. 

Q 

Can I now dismiss employees for any reason 

up to two years? 

A 

Many employers will have seen in the news that the unfair 

dismissal service requirement has now been extended 

to two years rather than one year. It is very important 

however that when dismissing someone you consider all the facts 

and if necessary take advice before proceeding. Firstly the two 

year rule only applies to employees who started on or after 6 April 

2012 and therefore, certainly for the next few months, employees 

start dates will have to be carefully checked before proceeding. 

Secondly the Employment Rights Act 1996 sets out many prohibited 

reasons to dismiss, reasons which are not dependant on the new two 

year service requirement. Dismissal for these reasons (such as, for 

example, whistle blowing, asserting statutory rights and dismissals 

relating to raising health and safety matters) are deemed to be 

automatically unfair. If an employee can show that the reason they 

were dismissed was one of the automatically unfair reasons, they 

can proceed with an Employment Tribunal claim. Furthermore, if the 

reason is automatically unfair, it is not open to the employer to argue 

(under the usual provisions of the Employment Rights Act 1996) that 

the dismissal was fair in all the circumstances. Employers therefore 

still need to tread carefully and document that they have a genuine 

reason to dismiss short serving employees. 

Q Can I change my employees’ contracts? 

A 

Not without their written agreement unless you have 

in the contract a contractual right to vary the terms and 

conditions of their contract. Otherwise, they could take 

legal action against you for breach of contract , or resign and claim 

constructive dismissal (if they have the relevant qualifying service). 

Therefore the starting point will always be checking the contract of 

employment. You should always consult with the employee in any 

event and explain the reason for wanting to make the change(s) 

and seek their consent. You should then confirm your proposals in a 

letter. If you can obtain the employee’s agreement to such changes 

at this point then you will need to issue a revised contract to them 

to sign that incorporates the changes, otherwise a side letter which 

shows the changes and is then kept with the original contract. If 

the employee refuses the change then you would either have to 

reassess your proposals or consider implementing then anyway, 

which causes the risks above. If the employees do not object where 

it is implemented anyway, they may be taken to have agreed to it by 

carrying on working but you would need a matter of months to pass 

before you can rely on their acceptance by conduct. However if they 

carry on working ‘under protest’ you will be in breach of contract. 

An alternative option available to you would be to terminate the 

contract on full notice and offer to re-engage the employee on the 

new terms of employment, taking effect on expiry of their notice. 

There would be no breach of contract in this situation but there is a 

risk of employees claiming unfair dismissal. In this situation it would 

be advisable to contact the RMI advice line. 

Whilst every care has been taken in compiling these responses, Automotive Insight cannot be held responsible for any errors or omissions; the advice is 

not intended as a substitute for specific legal advice. For further information and/or advice regarding any of the issues raised above or any other HR & 

Employment related questions please visit www.rmif.co.uk/members/hr. To submit questions please use the feedback button on the site.

December/January 2013 Issue - Retail Motor Industry Federation

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