NATIONAL MOTORCYCLE DEALERS ASSOCIATION NEWS NOVEMBER Dear Colleague,
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1 NATIONAL MOTORCYCLE DEALERS ASSOCIATION NEWS NOVEMBER 2016 Dear Colleague, This month s NMDA news contains all the latest motorcycle information, plus other issues facing the sector. Honda PCX 125; best-selling model in October 2016 Demand in the motorcycle market cooled in October recording a growth of just 0.3%. A total of 8595 units were registered in October 2016 just 22 more bikes compared to the same period in We have now published the latest results from the NMDA Autumn Dealer Attitude Survey. The received a response rate of 30%. Over the last few years there has been a view that brands with a low percentage of dealer responses have not necessarily been representative of the views of that network, and could skew the results either way. Please see today s news for more details. Steve Latham Head of NMDA
2 IN THIS ISSUE: OCTOBER PUTS BRAKES ON MOTORCYCLE DEMAND NMDA DEALER ATTITUDE SURVEY AUTUMN 2016 RESULTS REVEALED WE VOICE OUR CONCERNS OVER RISING LEVEL OF MOTORCYCLE AND SCOOTER THEFT LEGAL UPDATE: EMPLOYEES WORKERS OR INDEPENDENT CONTRACTORS CHINESE DEALER UNCERTAINTY OVER EURO 4 PRODUCT SUPPLY TRAILBLAZER UPDATE RIDER LICENCING; THE MINISTER SAYS NO CHANGE OCTOBER PUTS BRAKES ON MOTORCYCLE DEMAND Demand in the motorcycle market cooled in October recording a growth of just 0.3%. A total of 8595 units were registered in October 2016 just 22 more bikes compared to the same period in There was substantial growth in the naked and scooter categories which both saw increases around 7%. For the first time in many months, bikes in the cc sector recorded a slight decline of -1.7% Following our vote to leave the EU, motorcycle riders are concerned what affect a long drawn out and protracted exit negotiation will have on their employment security, inflation and their ability to retain their current living standard. Also, we have seen the devaluation effect on our currency with a few manufacturers increasing their retail prices. There is certainty that in the coming months no brand will be able to sustain the devaluation of sterling much more. All these are factors which could be influencing buyers to delay replacing their current motorcycles. More positively, we are confident that the residual values of 2-3 year old motorcycles will remain strong, and this in turn will enable consumers to change their bikes and to take out new PCPs at competitive prices. Overall dealers remain optimistic that demand will hold up near to the current year-to-date growth figure of 6.7%, and as the final push come to move on the last of the Euro 3 machines prior to the January deadline. NMDA DEALER ATTITUDE SURVEY AUTUMN 2016 RESULTS REVEALED The NMDA is pleased to see that this year s Autumn 2016 Dealer Attitude Survey received a response rate of 30%. Over the last few years there has been a view that brands with a low percentage of dealer responses have not necessarily been representative of the views of that network, and could skew the results either way. Therefore, in this survey, we have decided to suppress the results of three brands that had less than 15% of their dealers completing the survey. Participants in this survey were made up of 83% of Independent Dealers, and 17% privately owned groups. 60% were single brand dealers whist the remainder of 40% were multi-franchises. The survey shows that the all dealer average when asked about the overall value of the franchise
3 improved 0.2 points to 6.8 since the last survey in spring Harley Davidson, KTM and Triumph were recorded as the top 3 franchises. The least valued franchises by respondents were Piaggio Group, Suzuki and Ducati. The dealer/manufacturer relationship score average remained the same as in the last survey in spring The partnership dealers have with their manufacturer scored an all dealer average of 3.4 Ducati dealers were more dissatisfied with the partnership they have with their manufacturer having reported a score of 2.4 since the last survey (where they scored 3.3) and fall to 9 th position in the ratings chart. Harley Davidson remained as the top scoring dealer with a score of down 0.2 points from last year. Dealer profit and future profitability remained static in this survey from spring 2015 When rating the profit return by representing their franchise, the all dealer average remained at 3.2 Harley Davidson and Triumph were recorded as the top 2 franchises. When asked about the future profitability of their business the all dealer average remained at 3.4 Again, Harley Davidson and Triumph were recorded as the top 2 franchises. The average score across all questions was 3.3, unchanged from the last survey. Overall this suggests that dealers are fairly satisfied with the business relationship they have with their manufacturer. Dealers are on average most satisfied with the image of the brands they represent and products they sell. This suggests that dealers are brand patriotic and confident in how the consumer views their manufacturer. The business relationship with manufactures is on average most strained in the issue of target negotiations and the standards required given the returns dealers receive. These issues along with the relatively low scoring question of manufacture management taking dealers views into account suggest that dialog could be improved. To receive a of the NMDA Autumn 2016 Dealer Attitude Survey Results and Report, please contact louise.woods@rmif.co.uk WE VOICE OUR CONCERNS OVER RISING LEVEL OF MOTORCYCLE AND SCOOTER THEFT
4 The NMDA and Motorcycle Industry Association (MCIA) recently attended a meeting Chaired by the Metropolitan Commissioner of Police Sir Bernard Hogan-Hough, about motorcycle theft in the UK - particularly in the capital. Not only have the theft of powered-two-wheelers increased in the last year but more worrying is they are more and more being use to perform crimes which in police jargon is called crime enabled bike theft. The reason for the criminal preference for two-wheels is munoverability and get-away ability in congested cities. The low detection of these crimes is the Police reluctance to deploy stingers and stop-sticks for health & safety reasons and the Home office recommendation to not pursue escaping motorcycles in built up areas for fear of creating rider or public accidents or fatalities. All this has convinced the hardened usually younger criminal that the bike or preferably the scooter is the idea vehicle for crime in congested city s. The statistics show that around 50% of vehicle theft/crime in Greater London is 2-wheeled motorcycles, 7223 motorcycles that are under 600cc and 1918 bikes are over 600cc indicating that larger bikes are stolen for their theft value on the illegal total resale, parts or export market. Regrettable the lower below 600cc motorcycles are stolen for other reasons but mostly to enabled crime with a fast get-away. Unfortunately only 5% of motorcycles are recovered as whole bikes, others being stripped for parts or burnt out. The police pointed out that one of their biggest concerns was the lack of in-built security on motorcycles plus the low level of additional security measures taken by riders in the city even if they have bought the security devices. Suggested reasons from the group to assist in the reversal of these escalating crime trends were as follows; 1. Traffic/parking officers employed by the local Boroughs could apply stickers to motorcycles/scooters in London bike parking bays saying 'NOT SECURED, Lock it-or-or lose it' this would rattle riders to use their pad-locks and security devices. 2. Motorcycle owners need to be advised to use their security locks, two separate locks on front and back wheel are the biggest deterrent to thieves. 3. Security advice for motorcycles should be part of the CBT training 4. Councils & Boroughs should educate riders how to use their ground anchors and security bars. 5. Dealers to advise and promote additional security devices and locks at point of sale of new motorcycles/scooters and also in their service & parts departments. 6. DVLA to re-enforce lock it or lose it advice on flyer sent out with re-licence notices. 7. Facebook page promoting motorcycle security showing how easy it is to steal without additional visible security locking. 8. Dealers in London offer Police sting scooters to entrap thieves. 9. Tracker system fitting encouraged by dealerships (Bike-track) 10. Longer term, better built in security systems on new bikes from manufacturers, long term measure. LEGAL UPDATE: EMPLOYEES WORKERS OR INDEPENDENT CONTRACTORS
5 You may have seen widely reported in the press the recent decision concerning Uber drivers. Whilst it might be nothing more than a passing news story this case has the potential to significantly affect the motorcycle industry. The issues The case considered the status of contractors and whether there is an entitlement to basic employment law protections such as the national minimum wage, holiday pay, the right not to be discriminated against and the right not to have deductions made from their salary. This is the first in a series of cases to be brought by drivers and couriers over the coming months. On this occasion the Employment Tribunal has ruled that two drivers who provided services to Uber are workers within the meaning of the Employment Rights Act This means they will be entitled to a limited number of employment rights including 5.6 weeks paid annual leave each year, a maximum 48 hour average working week and rest breaks, the National Minimum Wage (and the National Living Wage) and the protection of the Whistleblowing legislation. So what does this mean for Motorcycle Dealers? The Uber case is of interest to any employer who uses contractors to perform tasks within their business, for example drivers, valeters or site/office cleaners. In light of this development it is prudent to assess the relationship with any of your workers/contractors, and particularly the level of control. It can be useful to consider what would happen if the person sent an equally qualified replacement to do the job. If this would be seen as a breach of the agreement between you then this contractor may be a worker. Source Motor Industry Legal Services (MILS Solicitors) CHINESE DEALER UNCERTAINTY OVER EURO 4 PRODUCT SUPPLY
6 Many small bike shops that sell a variety of low cost Chinese motorcycles and scooters are getting concerned that supplies of compliant Euro 4 machines may either by not available or delayed until later in This is due to the Chinese manufacturers not seeing Europe and the UK as significant market place taking sufficient quantities to justify this technical investment over the current Euro 3 product ranges, these sell in vast numbers elsewhere around the globe particularly in the nations of the developing world. Some of the more major Chinese importers in the UK have announced they will have Euro 4 product in the first few months after the change date of January 2017 but while their stocks of certain Euro 3 product is getting low it is imperative that any dealer stock that is not derogated to sell beyond the end of this year is taxed and registered in December. The one thing that is predictable is when new Euro 4 Chinese product does arrive it will be substantially more expensive not only because of the cost of technical upgrading but also due to Stirling devaluing against the US Doller that is the currency used to import Chinese goods. All this means the last of the Euro 3 motorcycles and scooters registered at the end of this year will look very good value. TRAILBLAZER UPDATE As you will be aware a dedicated group of motorcycle dealers, training providers and manufactures have been working tirelessly to develop a Trailblazer Apprentice training standard to link with the governments new apprentice programme due to start this coming April with the introduction of the new ½% wages levy deduction. Demand on the Governments Department of Education is intense as all Industrial sectors are submitting apprenticeship standards as all business will need these to enable them to secure funding from the new levy support. I am pleased to say, with the support of the IMI, we have re-written the motorcycle apprentice standard after initial rejection as being too similar to the car standard, and we are hoping to re submit this for approval before the end of this year. If you would like to view or comment on the new standard, the link to the standard is: RIDER LICENCING; THE MINISTER SAYS NO CHANGE
7 As you know the NMDA have been pursuing rider licencing changes following Brexit, we have written to the minister twice explaining how disadvantaged motorcycle technician apprentices (16-19 years old) are not being able to road test bikes bigger than 125cc when their equivalent car apprentice can test drive at age 17 and HGV truck apprentices can test drive rigid 8 wheel trucks up to 32tonne GVW at age 18. Notwithstanding this sensible argument the government are obsessed with rider safety and are not prepared to accept that younger motorcycle riders are unfairly discriminated against. I would say if you can trust your apprentice mechanic to repair a large motorcycle safely, why can t you trust him to test ride it? A copy of the latest letter from the Parliamentary Under Secretary of State for Transport Andrew Jones MP is attached.
NATIONAL MOTORCYCLE DEALERS ASSOCIATION NEWS JULY Dear Colleague,
NATIONAL MOTORCYCLE DEALERS ASSOCIATION NEWS JULY 2016 Dear Colleague, This month s NMDA news contains all the latest motorcycle information, plus other issues facing the sector. It is positive to see
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