EDITORS' BLOG

BY NOW we all know how scrappage works; we take our ‘useless’, rusty old banger in and get £2,000 off a shiny, clean, brand new motor.

At least that’s how it’s meant to work, but some people have a very different idea of what constitutes an ‘old banger’.

Having spoken to dealers in the North East this week, one thing every person has told us is that they have seen a car scrapped that they wished hadn’t been under the scheme.

The problem is, a certificate of destruction is required to get the government’s contribution, so dealers’ hands are tied if they want to save a classic car from the crusher and the owner wants it gone.

Paul Cook from Tees Valley Mitsubishi told us he was disappointed to see low mileage Corollas being destroyed when they’re such reliable, economical cars.

And some of the motors that were destroyed were much more than just useful runabouts. A salesman at an Evans Halshaw dealership told us of a 1995 Renault Clio Williams that was scrapped, arguably one of the finest hot hatches ever made.

COSWORTH

He also knew of an Escort Cosworth, belonging to a gentleman whose wife ‘used it to go down the shops’ that was going to be traded in for a scrappage discount at a Yorkshire BMW dealership.

Luckily, the Escort was more valuable than the £2,000 discount on offer, and was saved. That really would have been a crime to send to the scrapheap!

A salesman at Lookers VW Darlington took an immaculate VW Golf GTi Mk2 in against a new Golf S. He considered buying the Mk2 GTi himself for £2,000, but since Volkswagen was offering a £3,250 scrappage discount on the Golf S, the GTi was destroyed.

Morris Minors, pristine Mk1 Astras, and even a BMW 3.0 CSL have been scrapped under the government scheme. But there’s a flipside to every story and with the news that some cars are escaping their fate maybe we’ll see some of these ‘scrapped’ classics on the road once again, whether legal or otherwise…

No one doubts that the scheme was paramount in propping up the industry last year, but a bit more flexibility in the rules could have helped.

Perhaps a scrap vito where dealers could send customers away for being stupid when they rocked up in a car too good for the crusher?

John Slavin

CAR Dealer Magazine has been sworn to secrecy. And, when we’re given embargoes, we respect ‘em.

Man, it’s frustrating sometimes, though!

I’ve just got back from Central London, where I’ve been listening to a full-on briefing all about the exit phase of the scrappage scheme. Held by BIS top names, it was literally an exclusive: we were the only media there! Information comes no hotter…

Indeed, it is so fresh, car makers themselves don’t even know yet. When I left, the letters were just going out to brands, telling them, well, the stuff I can’t yet tell you.

The embargo is to be lifted on Tuesday midnight. I’ll be staying up to ensure it goes up live dead on midnight. Any keen night owls out there, be sure to check out the site!

For now, sorry I can’t tell you more. But BIS invited Car Dealer Magazine alone for the one-on-one briefing, because we’ve been on board with the scheme from the off. Which has meant we’ve been able to bring you all the latest information, the moment it breaks.

We don’t want to break that trust, and risk the quality of information we bring you! So, for now, please bear with us..!

Richard.

It might have something to do with my days as a product tester on Auto Express, but I like nothing better than a new set of rubber!

My Focus ST has chomped through a set of Continetals in just 12,000 miles – something to do with the wife’s driving one would imagine – but with the wear bars nearly reached it was time to find some replacements.

After some shopping around – and a discounted quote for £215 for a pair of Michelins – I opted for a set of Avon ZZ3s. These not only look pretty special, but come with a sensible price tag too.

At just £240 for a set of four they’re nearly half the price of the discounted Michelins! They arrived a couple of weeks ago and I’ve just had a chance to get them fitted.

DETAILS

The Avon ZZ3’s are the manufacturer’s ultra-high performance tyre and have been designed for those that need wet and dry road-holding with predictable handling.

And the really clever bit is the rather oddly-named rim flange – this isn’t as dodgy as it sounds, but is in fact a rubber lip that protrudes from the rim protecting alloys from kerbing. Particularly handy, again, for the wife.

The tyres come in sizes from 16-inch to 19-inch and speed ratings W and Y. They’ve been made with European roads in mind so should cope with the rigours of our potholed streets.

FIRST IMPRESSIONS

I took the Focus for a long spin with the new tyres and although a little louder than the outgoing set they’re particularly grippy. Turn in to corners have a lot more feel and they feel lighter.

They cope very well in the wet too – adding a noticeable amount of grip on slippery roundabouts. Overall I’m very impressed and even like the snazzy design.

But the real plus point is that aforementioned price – for the money, the ZZ3s are an absolute bargain.

I’ll let you know how long the Avon ZZ3s last and any other thoughts as they bed in. In the meantime, to find a stockist call 01225 703101.

James

TALK about stick the knife in! If ever proof was needed that the car retailing world is a cut throat industry, it is this.

Spotted on Twitter late last night from large American car dealer was this simple Tweet:

‘Receive a $1000 rebate on your Toyota or Honda. Send me a DM for details.’

Now this got me intrigued - surely the Ford dealer wouldn’t be sticking the knife in to his rivals forced into recalling hundreds of thousands of cars across the world?

You bet they were.

I sent them a message via the social networking website and asked if buyers really were that upset with cars affected by the recall that they were considering swapping them.

Their answer?

‘Of course. There are lots of buyers disappointed with their recalled cars. We saw that as an opportunity.’

Well, they say all’s fair in love and business - or at least I think they do - and you’ve got to admire their front.

So, how long before dealers over here start capitlising on the negative messages pulsating around the media and offering a similar incentive?

Think about it - despite the fact these manufacturers hit by recalls are working hard to repair the faults, there are still a lot of owners out there who will probably have lost - rightly or wrongly - a little faith in their car.

That’s why ‘enterprising’ dealers offering an extra slice of cash for chopping in one of those cars affected might just have some buyers take them up on the offer.

Whatever you think of the dealer for doing it, you can’t deny they’ve spotted an opportunity and pounced. And with car sales predicted to take a tumble in 2010, wouldn’t you like to try every trick in the book?

James

If you’ve spotted a similar offer or have come up with something like this at your business let us know by posting your comments below

A PRODUCTION error (yes, he’s been shot) has meant a rather unfortunate error has crept into this month’s magazine.

The SMMT sales figures for January printed in the March issue (out this week) are ever so slightly wrong.

Ok, when we say slightly we mean they’re hideously and somewhat hilariously wholly inaccurate.

It’s not entirely our fault – the SMMT removed Tata and MG Rover for the start of the year and helpfully didn’t tell us – but still we screwed up. Sorry about that.

To make up you can download the corrected PDF of the page here: smmt_figures

Feel free to send any hate mail to the editor and he’ll pin it up around the desk of the designer at fault…. He won’t know as he’s getting the tea in – for the next month.

HERE it is – the video that proves we really did enter a banger race in a Hyundai i10 and live to tell the tale…

RIGHT, I’m not auditioning for a slot on Top Gear – a presenter I am not – however alongside our Hyundai i10 banger race feature that graces the cover of the current issue, we also produced a video.

It’s posted here in two parts as it was too long to upload in one movie to the YouTube. It was made in association with Optimisitc Video and St Vincent College students who helped film the event for their coursework.

Their tutor Rob Hind has done a cracking job cutting it together and despite the wooden presenter (you can always fast forward me), it captures the event superbly.

From preparing the car with Cecilsrentarookie.co.uk to the eventual monumental crash, it’s all here in two parts.

I hope you enjoy it.

Here’s part one…

And part two…

If you’ve got any ideas on what we should do next let me know – we’re always up for mad motoring challenges with a motor trade theme.

To read the full feature on our banger race simply subscribe to the magazine –£17.24 for 12 issues – and we’ll send you the latest issue as a bonus!

More: Anyone else up for banger racing?

I WAS given a fascinating insight into the complicated life of a car manufacturer marketing chief this week.

It’s social media that’s giving him the biggest headache.

Working out how to use websites like Twitter and Facebook is baffling car manufacturers. Most know they should be using it but to what extent, and how, is still unclear.

Chatting to Chris Brown, marketing director for Hyundai Motor Europe, I was given an incredibly honest and insightful account on life on the inside.

Brown has only just joined Hyundai from a post with Honda and at the ix35 launch in Rome we had a lively debate about the pros and cons of social media.

‘Knowing how to use these channels properly is the hard part,’ explained Brown. ‘This industry is very old fashioned and I’m just not sure that the people at the top can readjust.’

Though the real problem car firms have with social media, explained Brown, was how to control it.

‘Marketing people have a series of key messages they want to get out there, but the problem occurs when customers interact – car firms don’t know how to react when someone says what they’re trying to push is rubbish,’ he said.

‘You and I know the idea with social media is to let the message just go, and virally filter through the medium, but it’s being able to do that which can be the hard part.’

HUGE POTENTIAL

But Brown admitted he could see the huge potentials for car firms to capitalise on Twitter – and explained how customer relationship teams could react to social media chatter in real time, like brands outside the car industry, such as BT and Vodafone, already do.

‘Who’s to say that in the future we won’t have banks of large computer screens displaying what’s being said about us on social media sites and assigning customer relationship teams to tackle the problems,’ he added.

Brown was adamant too that the real opportunity with sites like Twitter and Facebook lie with the dealers. How? By actively targeting people looking to buy cars.

‘Social media is all about chatting and updating what you’re doing,’ Brown explained. ‘So if someone is talking about buying a car, dealers should be searching for that and showing them what they’ve got to offer.

‘If I was a dealer I’d be all over Twitter all of the time looking for sales opportunities.’

The marketing director went on to explain how Hyundai is planning a viral marketing campaign on YouTube to mark the manufacturer’s association with the World Cup. The carmaker plans to ask people to record their goal celebration and upload it to the video-sharing site with the best winning tickets to the matches in South Africa.

‘Social media has opened up a whole new world of opportunities for brands – all the car industry needs now is to work out how best to use them,’ added Brown.

James

Banger Racing in a Hyundai i10: The Video

WE all make mistakes – they’re unavoidable, but it’s how you fix them that makes the real difference.

There are thousands of very angry Toyota customers out there right now who are driving cars they’ve got to take back to dealers for repairs. But if retailers are clever about this huge recall, they could actually enhance their reputation, not damage it.

Admitting you’ve made a mistake, apologising for it and fixing it swiftly is often enough to repair tarnished relationships.

And Toyota has handled this whole sorry chapter in its history very well.  Information has been flowing steadily from head office and customers have been kept informed. What’s more, considering the sheer scale of the recall, the parts for the remedy have been swift to arrive with dealers opening longer hours to get the work carried out.

What’s so important now is how dealers look after these customers forced to return for work. There’s no doubt it’s going to be an inconvenience to these owners used to driving unbreakable vehicles, but if they’re treated courteously, efficiently and professionally – as all Toyota dealers will no doubt do – the damage done can easily be repaired.

Just think of the amount of people you tell when you’ve experienced a problem that hasn’t been resolved to your satisfaction – countless more, no doubt, than when you’ve had a problem that’s been fixed quickly and to your satisfaction.

OPPORTUNITY KNOCKS

Dealers could even use this as an opportunity. Imagine the amount of money you’d have to spend on a marketing campaign to get that sort of customer numbers through your door?

So why not let them use a newer model as a courtesy car while the repair is being carried out? You could explain the benefits of a service plan, or even show them how cost effective upgrading to a new model could be.

To be fair, the hard sell isn’t going to work – however nice you are there will still be some disgruntled owners out there. But by sorting the problem professionally and with as little fuss as possible, dealers can play a very important role in not only rebuilding Toyota customers’ faith in the brand – but actually enhancing its reputation too.
James

WE love a scoop here at Car Dealer - even if they ruin our plans completely!

It’s not the first time an extension to the scrappage scheme has caught us out, but this time really was last minute.

With 95 per cent of the pages finished for the next issue of Car Dealer - which goes to press today - done and dusted, I joked to a colleague: ‘Just imagine if the government extended the scheme now…’

‘Don’t even joke about it,’ was his reply.

An hour later the phone rang…

‘You didn’t get this from me, right, but the scrappage scheme is being extended. The anouncement will be made tomorrow morning,’ said our mole.

Damn and drat.

I phoned a few more contacts and it turned out they’d heard the same thing. This was true. So I got to work and broke the news with a post on our website before anyone else.

Then I phoned BIS - the governement department behind the scheme - and asked if the rumour was true, knowing all along I’d get a ‘no comment’.

That was indeed the reply, but it was the chuckle from the press officer before it that confirmed in my mind our mole had hit the nail on the head.

Story posted, web traffic steadily picked up as the story filtered through to other news agencies and did the rounds on Twitter. The BBC posted a story two hours later, the Press Association, two-and-a-half hours later and Sky News even later than that. Check this out for proof.

The only other news outlet that bagged the story was our friends over at Autocar - and I can only assume my mole was their mole too!

SORRY MANDY

When the government issued its press release a full 12 hours ahead of the time they’d planned I felt a twinge of achievement. Car Dealer had broken the news and now Lord Mandelson’s department had been forced into a late night annoucement.

I’m not saying that’s because of our story, but from what I hear it certainly played a part… So sorry Mandy if we disturbed your dinner!

Obviously, we’d never reveal the source of our scoop - a good journalist NEVER does that - but I will publicly say thanks to them here… you know who you are!

If you ever hear of something we should be reporting, please get in touch. We treat all information in the strictest confidence.

Oh, and you’re probably wondering what we’re doing about our special After Scrap issue - well, we’re leaving it as it is.

My thinking is, with only an extra four weeks added to the scheme and no more money, all our features and advice still stand - you’ve just now got an extra month to soak it all up!

Right, better get this issue to the printers…

James

I WAS just putting the finishing touches to the i10 Banger Race feature when this video popped into my inbox.

It’s an early preview of some of the footage we shot for a documentary style film to accompany our feature on the scary event. This was shot on the smaller of our two cameras by two students from St Vincent College, Gosport, who are producing the piece for us as part of their coursework.

Apparently the crash was captured on the full HD jumbo-size camera too, but we’re saving that for the video to come in the next few weeks. However, this still clearly shows the force of the impact I took in the race on Sunday – and explains why my neck still REALLY hurts.

There’s a slow mo of the impact after the first one and you can see the i10 gets hit twice – the first sends me flying into the fencing and spinning off and the second is what realigned the rear wheel at a 45 degree angle to the bodywork…

The full feature of the banger race is in the next issue of Car Dealer – out in the second week of February. You can order your copy here. We plan to post the finished video around the same time, but keep an eye on this blog for news nearer the time.

James

More banger racing blogs can be found here