00:49
John, reckon you could beat Carwell's Matt Watson in a drag race?
00:53
Probably not with any of your stock, James, but I'll give it a go.
00:57
Well, John, it's funny you should say that.
00:59
Right now, Carwell is offering dealers the chance to win one of 20 spaces for a day on the track with Matt.
01:05
All you need to do is source stock in Carwell's daily online auctions in September.
01:11
So you're saying just by buying a couple of picantos, you could win a day on the track with Matt Watson?
01:17
That's right, John. Every vehicle bought and collected via Carwell's auctions in September counts as one entry.
01:24
So the more you buy, the more chances you get to race against Matt Watson himself.
01:29
You can sign up today, John, at carwell.co.uk slash partners slash win.
01:35
Terms and conditions apply.
01:38
Welcome back to the Cardiola podcast where we pick our favourite stories of the week and ask an industry guest to choose which were the best.
01:50
I'm John Ray and joining me this week from two floors underneath me in what can only be described as a hotel in Leicester is James Baggett.
02:00
James, how are you doing?
02:03
Fine thanks, John. Yeah, fine thanks.
02:06
I am in quite possibly the strangest hotel room I've ever stayed in.
02:10
I think it can only be described as a honeymoon suite.
02:14
It's got far too many mirrors from my bathroom.
02:20
Honestly, I had a little bit of a problem in my first room, which is like the air comms leaking.
02:26
So they moved me, they upgraded me.
02:28
Actually it was quite a nice room for.
02:30
I said, I don't know, we've got you an even nicer one.
02:32
And I came in here and it had very, very soft lighting.
02:35
There's lots of lever everywhere and everything is like a reflective surface.
02:40
I mean, even the bathroom door is mirrored.
02:43
It's very strange, very strange.
02:45
But yeah, we're up here because we've been on the road this week.
02:48
We've been out seeing some dealers, which has been fun.
02:52
I saved one of the visits for our stories,
02:56
but we spent quite a bit of time yesterday at top 555.
03:00
Which is a super car dealer for part of our selling super cars series,
03:04
the video series on YouTube, which was great day yesterday, wasn't it?
03:08
There were lovely, lovely chaps.
03:10
Really nice business, been running there for 25 years.
03:13
Fantastic story the owner's got.
03:17
I just thought the way he's kind of built that business.
03:20
He said left school without any GCSEs and just really kind of fought for it
03:25
to for nail all the way in 25 years later.
03:28
There he is sat there with very, very expensive car sat around him.
03:32
He has an AMG one, which is 2.8 million pound Mercedes in the showroom.
03:39
So yeah, he's done all right for himself, isn't he?
03:41
So yeah, I'm looking forward to putting that one together.
03:44
But I've got a new favorite thing, John.
03:52
We're actually going to talk about this.
03:55
So part of the other reason John and I are on the road is
03:58
because my better half had bought us a joint birthday present,
04:03
actually not John, which was a sausage making course in Leicester.
04:07
So last night we spent the evening making sausages
04:12
and never have I enjoyed so much innuendo in all my life.
04:17
Did you get a video?
04:20
No video, but there are some pictures.
04:24
I mean, James, we've done some, in the 13 years that I've been working here,
04:29
we've done some very strange things.
04:31
I mean, what have we done?
04:33
We've been to Tokyo and filmed Boris Johnson driving in Mitsubishi Outlander.
04:38
Well, we've tried to race a Mazda CX-5 with a canoe,
04:44
but I think probably standing in a pie making factory in Melbourne,
04:50
watching you try and stuff a kilo of pork mince into an intestine,
04:56
at that moment I thought, no, this is the weirdest thing we've done.
05:00
I mean, you know, I mean, when it comes to work,
05:03
colleagues, John, I mean, I'm glad you were there with me.
05:06
Let's put it that way.
05:09
We're very swiftly on from this whole link.
05:12
I mean, I should say as well, we've each got a kilo of sausages in our hotel mini fridges,
05:17
which I don't think is what they've been used for before,
05:20
or probably will ever be again.
05:22
Part of the hotel choice was,
05:24
has he got a mini fridge that we can put a kilo of sausages in?
05:30
Anyway, I'm going to introduce our guest now.
05:33
Hopefully some more civilised and normal conversation.
05:36
So I'll guess this week I'm thrilled to say is James Wilson,
05:41
James, lovely to see you.
05:43
Hello. It's great to be back.
05:45
I'm not sure how to follow up on sausage making and the honeymoon suite.
05:48
It's a combination that makes the mind boggle a little bit.
05:52
I feel slightly uncomfortable.
05:56
Very nice to see you, James.
05:58
I'm looking very much looking forward to the podcast live next week.
06:03
You are our esteemed sponsors.
06:05
It's taking place on Wednesday next week.
06:07
We've got lots of people coming along.
06:09
We've got a really good panel on the podcast
06:13
and really interesting people.
06:15
What are you looking forward to?
06:17
Yeah, first of all, really looking forward to the day.
06:20
I mean, we just wanted it last year,
06:23
and what I loved about it is, yes,
06:25
the podcast, of course, is amazing.
06:27
You have some fantastic guests,
06:29
but the networking, actually,
06:31
catching up with people across the industry,
06:33
talking to dealers, getting their feedback,
06:36
and just connecting.
06:38
Part of the reason we're sponsoring this
06:40
and we sponsor other events like this
06:42
is because we do believe getting people together
06:44
is incredibly powerful, and we see that time and again.
06:47
So, yeah, really looking forward to it
06:49
and listening to your speakers.
06:52
Yeah, we've got some great people.
06:54
People can get tickets online still, can't they?
06:57
There is a tab at the top of the page now.
07:00
You can go to the dealer magazine website.
07:02
You click podcast live, and you can book a ticket.
07:04
So, hopefully, we'll see some people there next week.
07:06
But, James, let's talk about Mosway.
07:09
I've got lots of questions.
07:11
Some of them have been put to me by some of your customers, too,
07:14
so we'll get on to those.
07:16
But, I mean, what's new with Mosway?
07:18
I mean, you've had some amazing growth
07:20
over the last couple of years.
07:22
I've noticed in the last couple of weeks
07:24
you've been well over 2,000 cars a day,
07:26
having you in the auctions.
07:30
Yeah, as you say, this is a very busy time for us
07:33
as it is for dealers through September and October in particular.
07:36
And really pleased with the number of cars
07:39
we were able to offer to our dealers.
07:41
So, as you said, I think it was last week
07:43
we had our biggest ever daily sale
07:45
with 2,277 cars for sale.
07:48
And that's continued, and we expect that to continue.
07:52
And that means we're offering great range to our dealers,
07:55
which is a really important part of our proposition to them.
07:58
I mean, the other part of the area we've been focusing on
08:01
is making it easier and quicker for dealers
08:04
to get the cars once they've won them in the day auction.
08:07
And, as of last week,
08:11
our pay solution, which I've talked about in this podcast in the past,
08:14
we now completed 7.5 billion pounds worth
08:17
of tractor's actions through pay,
08:19
which is a ginormous volume
08:21
and shows how that's been taken up by our dealers
08:24
because it's so much easier to make the payments.
08:27
It's quicker, it's easier.
08:29
We've managed all of the admin on behalf of those dealers.
08:32
Earlier this year, it was January, we launched stock funding.
08:36
So, those dealers who have a relationship with Next Gear Capital
08:40
can use their stock funding to fund the purchase
08:43
so they can just, at a click of a button,
08:45
pull down that cash and pay for the vehicle
08:48
and that will be automatically updated on their Next Gear account.
08:52
And what I'm excited to say, actually,
08:54
is that we will be launching with early capital in October.
08:58
So, that'll be our second stock funding partner.
09:01
And what we've seen with Next Gear is we've got hundreds of dealers using that.
09:05
It's been very, very popular.
09:07
And we know that there are hundreds of dealers with early capital
09:09
who also use motorway.
09:11
So, overall, we're continuing to provide that range of stock for dealers
09:16
and simplify the purchases they make through motorway
09:21
because we know that's really important.
09:23
They want great stock.
09:24
They want it fast onto their forecourt so they can retail it.
09:28
Yeah, there's a lot of dealers out there that use stock funding
09:31
and if they weren't able to use it on your platform,
09:34
they couldn't buy from you.
09:36
So, I mean, that's a massive step.
09:38
Are you looking to push that into any of the other stock funding partners?
09:42
Well, at this stage, do you want to get early capital up and running in October?
09:46
But, of course, we continue to take on board dealer feedback
09:50
and we know that other stock providers out there.
09:52
So, certainly something we'll consider.
09:55
What's the market out there like at the moment?
09:58
I mean, some of the feedback I'm getting from dealers
10:01
that it is incredibly competitive,
10:04
that they're struggling to get hold of stock,
10:07
their margins are being really squeezed.
10:09
What's motorway seeing?
10:11
I think, overall, it's a solid market is what I'd say.
10:15
It's stable and I think you've been reporting on that
10:18
for the last few weeks in terms of pricing.
10:20
There's definitely lots of demand.
10:22
So, we've seen record numbers of dealers bidding on our platform,
10:26
record numbers of bids.
10:27
So, there's definitely significant demand for stock at the moment.
10:31
But yeah, overall, a solid market.
10:35
And as I said, we're seeing growth
10:37
and we're seeing good dealer engagement.
10:39
How big do you think these auctions are going to get?
10:42
I mean, I know it's only a few months ago,
10:45
it feels like that you were talking about topping 1,500
10:48
and topping 1,000, you're now well over 2,000.
10:52
How big do you think these motorway auctions are going to get
10:57
Well, I think a lot bigger, I hope, for our business.
11:00
But I think when you step back
11:02
and you think about the volumes you're doing,
11:04
yes, they're very, very substantial.
11:06
But as a portion of the total market,
11:08
they're still relatively small.
11:09
So, there's lots and lots of headroom for us to grow.
11:11
But what's important is we keep delivering for our dealers.
11:14
So, we haven't got a right to grow.
11:16
We've got to deliver for our dealers consistently
11:18
day in, day out, a great experience.
11:20
So, that means lots more relevant stock for them
11:23
and making it as easy and as quick as possible
11:25
for them to purchase through our platform.
11:27
And we've got to make sure we're cutting through
11:29
with private consumers who want to sell their cars
11:32
and make sure we're making it clear to them
11:35
why it's a great workplace for them to sell their car
11:37
and make more money than if they went through alternative channels.
11:40
So, I think the short answer is there's lots of headroom
11:43
and that's what we're aiming to capitalise on.
11:46
Tell those people listening.
11:48
I mean, I've seen a little bit myself
11:50
when we produced a video all about motorway.
11:52
I saw what goes on behind the scenes of motorway.
11:55
But tell those people listening and watching on YouTube.
11:58
What goes into the process of getting one of these cars listed?
12:01
Because it's not as simple as just somebody sat at home
12:04
putting the details in on their phone and pressing Go Live, is it?
12:08
No. I mean, it's that we...
12:10
There are many, many steps that you have to go through end to end.
12:14
And our strategy is to make sure each of those steps
12:18
is as easy as possible, whether that's for a dealer or for a seller.
12:22
So, from a seller's perspective,
12:25
the process they go through is they use our app to get an initial valuation.
12:29
They'll then profile the vehicle using our app,
12:32
taking photos, adding information about the condition of the vehicle.
12:36
That will then be submitted.
12:38
We will then review that vehicle and the condition of the vehicle.
12:42
And if there is additional damage, we will reprice that vehicle.
12:45
And then it will go into our daily auction.
12:47
The daily auction now runs from 4.30 to 3.30 the next day.
12:51
So we've extended very recently,
12:53
actually extended the length of the auction in direct feedback.
12:57
Sorry, in response to direct feedback from dealers who said,
12:59
look, I'm still in the office from 4.30.
13:02
I want to be able to bid.
13:03
Okay, we'll extend the auction to support you, make it easier for you.
13:07
So the auction runs, dealer's bid, a dealer wins the vehicle,
13:12
at which point we need to collect the documentation from the seller,
13:17
V5C driving license and bank account details,
13:22
and we verify this seller.
13:25
And we have a bunch of systems that run in the background,
13:27
some automated, some manual checks to ensure that that's all done,
13:31
at which point the dealer then starts to arrange collection
13:36
from with the seller or they can use Motorway Move,
13:40
our transport service to do that.
13:43
Then at the point of collection, the dealer or the Motorway Move driver
13:47
will inspect the vehicle and confirm the price,
13:51
at which point dealers using Motorway Pay can pay for the vehicle
13:55
and the transaction is complete.
13:58
That's kind of the end-to-end process.
14:01
And there are multiple steps that happen,
14:04
as you can hear, as you've heard, to do that.
14:08
And we're constantly focused on how do we make them better and better.
14:12
Tell people listening also about the dropout rate of those consumers
14:17
because I want to get on to some of the feedback I've had from dealers
14:21
and I'll ask you those questions.
14:23
But one of the things, I think it's important for people to understand
14:26
is how difficult it is for platforms like you
14:29
to actually get people to list their cars.
14:32
So I mean, we have what we call a funnel.
14:36
So we have lots of dealers will start the process of getting an initial evaluation.
14:40
Some of them are just looking to understand pricing
14:42
and what they could make from their vehicle.
14:44
Others have higher intent and they want to move through the entire process.
14:48
And that's frankly true across the entire funnel.
14:52
And I suspect this may come up from the feedback you've got from dealers,
14:57
but one of the challenges is making sure that sellers
15:00
are committed to the process.
15:02
And so when we are going through the process of revaluing their vehicle
15:07
to account for that additional damage that I mentioned,
15:09
we will communicate very clearly that our expectation is that they will continue with a sale
15:14
if the vehicle hits the reserve price or above.
15:18
Now that being said, there are a number of sellers that will drop out at that point,
15:22
even if they've got that price because they change their minds,
15:25
their circumstances change, there may be competitive offers.
15:28
So that does happen and I know that's frustrating for dealers.
15:32
We have a team that's dedicated to make sure that we're following up with sellers
15:36
to make sure they're confirming as quickly as possible,
15:38
because I think what dealers want to have is certainty.
15:40
They want to know, I've got the car, I haven't got the car,
15:43
because that enables them to then go back and say,
15:45
I haven't got that car, I can build on a different car,
15:48
get that into my full court and get it sold.
15:51
So we work really, really hard to ensure that we are getting commitments
15:57
and we have messaging through our app and through the customer support teams
16:01
that work directly with sellers to get that point across
16:03
and then teams to ensure that we are following up with sellers to get them to commit
16:08
to the sale so that dealers have that certainty.
16:13
Yeah, I mean, one of the points that was raised to me,
16:16
and I mean, I've experienced it this week on the car I bid on,
16:20
I bid on a Hyundai i10, one was the winning bid, was over reserve,
16:26
then get a message from Motorway saying,
16:28
well, the customer wants £121 more.
16:31
Well, you know, at that point, once you've worked in fees
16:34
and the slim margin I was working on anyway,
16:36
it makes the deal not worth going ahead with.
16:39
So I had to say to the Motorway team,
16:41
you have to cancel that one, I was right.
16:43
That is frustrating.
16:44
You know, you've won a deal that you think is over reserve,
16:48
that customer has listed their car at a price that is already well above cap
16:52
and then even still they're coming back and pushing for more.
16:55
What can Motorway do to put a stop to that sort of behaviour?
17:00
Well, I mean, I don't have the perfect answer for you now.
17:03
What I can say and reassure dealers is that we are aware of the issue
17:07
and we're working on a number of different ways of solving it.
17:10
Part of it is around that communication and education of the seller
17:15
that they're getting a great deal.
17:17
Your frustrations, I've given them a great deal
17:19
and they've still dropped out.
17:21
I think we can do more to educate sellers
17:23
on the quality of the bid that they've got
17:26
but there are also some other areas we're looking at
17:29
to improve the commitment we get from sellers
17:32
because I know this is an issue
17:34
and by the way, it's frustrating for us as well.
17:36
You're going to pay for the transaction.
17:38
We're very motivated, dealers sometimes wonder
17:41
but we are very motivated to get that sale to go through
17:44
and so it is one of the areas we're focusing on
17:48
to make sure we can support our dealers
17:50
and frankly also support our business.
17:53
It's important for us.
17:54
We're as motivated as dealers to solve this problem
17:56
but it's not a straightforward fix
17:59
because part of the proposition to sellers
18:03
is that it's a free service.
18:05
They are not completely committed
18:08
and that gives them the chance to go through this process
18:11
and get to the auction,
18:14
get a great prize, be convinced by that
18:16
and then they continue through the process.
18:18
So it is a tricky balancing act that we're trying to manage
18:22
but we're very aware of the challenge
18:24
and we are working on it
18:26
and dealers will see more stuff on that coming out.
18:28
How many people who do evaluation on your site
18:31
actually go ahead with listing it?
18:36
what's the percentage of people who actually go through with the process?
18:41
I don't have that number off the top of my head
18:44
but we do see there's a significant number
18:46
who are just going through the evaluation process
18:48
at the top of the funnel.
18:50
What we find is that there is quite a long process
18:55
that a seller will go through.
18:57
So they'll start there and they'll come to us to check the price
19:01
and then they'll come back
19:03
and then work their way through the funnel,
19:05
work their way through the process that I described,
19:07
getting to the sale because people are doing their research,
19:10
trying to work out where's the best place for me to sell my car.
19:13
Our goal is to make that as short as possible.
19:15
We've convinced them up front that Motoway is the best place
19:18
for them to sell their car because they're going to get a great price.
19:21
And that's a big, again, another focus area for us.
19:25
But typically, as I say, we see initial valuation
19:28
and they come back and go all the way through.
19:31
Isn't this process though pushing up prices just continuously?
19:36
Because let's face it, Motoway,
19:38
it's a very competitive market out there, isn't it?
19:41
For people when they come to sell a car,
19:43
they've got you, there's obviously car wow,
19:45
there's we buy any car,
19:46
there's the option of taking it to a dealer.
19:49
When these customers are trying to sell their cars,
19:51
there's lots of options.
19:52
So the only way you can really get it listed on your site
19:55
is surely giving them the best possible price.
19:58
But then for the dealers,
19:59
that means that the prices keep getting pushed up.
20:01
What would you say to people who think that way?
20:03
I don't really see it that way
20:05
because what we're doing is we're connecting,
20:07
if you go back to what we do at Motoway,
20:09
what we're doing is connecting supply and demand more efficiently.
20:12
And there are dealers out there who want to buy that car
20:19
they weren't able to get access to that stock
20:21
and make that transaction happen.
20:23
With Motoway, we're enabling them to see that stock,
20:26
which they wouldn't have seen
20:27
because traditionally they were just using public exchange
20:29
and they're buying that, buying that vehicle.
20:31
And so there are dealers out there who want to buy those,
20:33
buy those cars at that price
20:35
and think they can make money
20:37
and do make money margin for their customer base.
20:40
So that's what we're really doing.
20:42
We're actually democratizing access to that stock.
20:44
In the past, the really big dealers would have access to that
20:47
more so than smaller dealers because they've got more footfall.
20:50
And now we're actually balancing this off
20:53
and actually democratizing it so that every dealer,
20:56
irrespective of size,
20:57
irrespective of business model
20:59
can get access to that stock
21:01
and bid on it at a level that means
21:04
that they can make a margin for their dealership
21:08
given that they know what their customers are prepared to pay.
21:11
It's a great way of looking at it
21:13
because you hear a lot, if you're out there
21:15
and I'm sure you get it all the time
21:17
when you're out there chatting to dealers,
21:19
they say, I can't buy from Motoway
21:21
because the margins are too slim, et cetera, et cetera.
21:23
And the margins are slim on Motoway
21:26
but you've just perfectly explained it there.
21:28
We wouldn't have access to those cars
21:30
in other parts of the country
21:32
if there wasn't a platform like yours.
21:34
What do you say to those dealers though
21:36
who just say that I can't make money?
21:38
I'm taking an example this week.
21:40
I looked at a car and after tax, VAT and fees,
21:45
there was probably £600, £700 in it
21:48
if you work back from retail price and auto trailer.
21:51
That is a very, very slim margin
21:53
to be putting a warranty on one of those used cars.
21:55
What would you say to dealers out there
21:57
who's just looking at it and say, I can't make it work?
21:59
I think our goal is to make sure
22:01
there's enough stock available
22:03
that there is stock
22:05
where they can make it work.
22:07
And that's why what's really important to us
22:09
is not just growing,
22:11
it's growing that volume of stock
22:13
and the range of stock
22:15
so that dealers of all shapes and sizes
22:17
can find stock that is suitable
22:19
for their specific dealership
22:21
so they can make money.
22:23
And as we grow, those opportunities
22:25
should increase for those dealers.
22:27
So it may be today you can't make money
22:29
on that car but there may be another car
22:31
tomorrow in our auction where you can.
22:33
Dealers to continue to use our platform
22:35
to find those opportunities
22:37
and let's be clear, if it wasn't working
22:40
we wouldn't have the scale right now.
22:42
The dealers are buying, they are finding ways
22:45
finding stock that's profitable for them
22:47
and supporting the growth of their dealerships.
22:49
That's why we've been successful
22:51
but we remain very, very focused
22:53
on ensuring that we are listening to dealers' feedback
22:55
as we just talked about
22:57
and constantly trying to improve
22:59
the efficiency of the marketplace
23:01
so they get access to that stock
23:03
and once they've got it, what's really important
23:05
as well is that they can get hold of that stock
23:07
once they've won it fast
23:09
and get it onto the full court quickly
23:11
because days to sell is as important
23:13
as margin per car, as we all know.
23:15
So there are two things we really are focused on.
23:17
It's getting that profitable stock to dealers
23:19
and getting it to them quickly
23:23
You know I use the platform regularly.
23:25
I bought three cars from Motorway this week.
23:29
it's there in my hand
23:31
wherever I am, every single day.
23:33
I also like the fact that you've extended those times.
23:35
It does mean that you can look at it
23:37
what is it, an hour after the auction's ended
23:41
It's a great way of doing it
23:43
and someone said to me, I think it was at one of your events
23:47
you need to get your bids in first
23:49
because if your bid is the same level as somebody else
23:51
it's the first bid wins it, isn't it?
23:53
I never realised that
23:55
until someone told me so.
23:57
That was a handy tip.
23:59
What are you going to do
24:03
way that the customers describe their cars?
24:05
Often, it's a frustration I feel
24:07
a lot of the time, you go out there and see the car
24:09
it's not as described.
24:11
It's all very well when you go out
24:13
and pick it up yourself because you can have that discussion
24:15
but when you're using something like Motorway Move
24:17
it's harder to have that
24:19
discussion remotely
24:21
when it comes to chipping the customer.
24:23
What steps are you making to make sure
24:25
that those cars are more actually described?
24:27
For example, have you thought about
24:29
a video walk around of a car
24:31
something that we can
24:33
really interrogate and watch ourselves
24:35
and make our own assessment?
24:37
Two ways we're thinking about this
24:39
first of all how we get sellers
24:41
to provide the information
24:43
and video is an obvious
24:47
and we have started to explore that
24:51
making sure that we're really clear to sellers
24:55
providing a comprehensive
24:57
assessment of the vehicle
24:59
because at the end of the day
25:01
if they don't there's going to be an inspection
25:03
whether it's through Motorway Move or through the dealer themselves
25:05
at the point of collection
25:07
and they will create
25:09
a challenge for them and potentially
25:11
a repricing of that vehicle
25:13
so there's more I think we can do
25:15
just in pure education terms
25:17
in the Motorway App for Sellers
25:19
we've started to do that
25:21
and there are certain types of technology we can use to try and spot
25:23
spot damage as well
25:25
so there's a whole range of different options
25:27
that we're exploring
25:29
but that's really really important to us on that side
25:31
on the seller side of our business
25:33
then when it comes to collection
25:35
the reason why we launched Motorway Collect
25:39
was to make it easier
25:45
where additional damage has been added
25:47
if it has been added
25:49
the kind of reports you can get
25:53
other service providers
25:55
where you just get reports
25:57
completely independent from that original listing
25:59
you've seen on Motorway
26:01
with Motorway Collect you can see
26:03
the original profile
26:05
and you can see any additional damage that's been added
26:07
and the feedback from dealers
26:09
is that helps in making
26:11
an assessment now there's still more we can do there
26:15
an area of opportunity for us
26:17
to get in additional bits of information
26:19
that dealers would like to see
26:21
and indeed things like video at that point as well
26:23
so we know that we're not done
26:25
and I think that's the message
26:27
I would communicate to dealers
26:29
we get it, we're not perfect
26:31
we've made a lot of progress
26:33
and we continue to invest
26:35
to make this as easy as possible
26:37
but we also hear the feedback
26:39
and we are working on it in the background
26:41
and they will see those improvements coming in the future
26:43
I'm a big fan of that
26:47
show you any additional problems
26:49
that they've found in the vehicle
26:51
and you can compare it like for like with the original listing
26:53
that's really really useful
26:55
have you thought about offering that to dealers
26:57
so like dealers like myself
26:59
we go out and collect the cars
27:01
it would be brilliant for me to be able to use that
27:03
it's really interesting you say that
27:05
we have considered it
27:11
I can't say more than that
27:13
there's a whole range of options
27:15
and I think actually that's the interesting thing
27:17
the interesting kind of actually is a challenge
27:19
we have lots of opportunities where we can improve
27:21
and one of the things we have to be thoughtful about
27:23
is where is the best
27:27
of our team's efforts
27:29
and time to solve these problems
27:33
that is something that we've considered
27:35
and we need to work out what is that the right place
27:37
to invest our time and effort
27:39
or is it upstream with the sellers
27:41
these ideas are good ideas
27:43
they are things we've considered
27:47
that's as much as I can say
27:49
I'll take that as a positive
27:51
what do you see when it comes to
27:53
electric vehicles on the platform
27:55
I just think anecdotally
27:57
when I look at the buy it now
27:59
after the auction is finished
28:01
I often see a lot of electric cars falling into those
28:03
and I just sort of assume that's because
28:05
dealers aren't buying them as much
28:07
as they would be other vehicles
28:11
what do you actually see
28:13
no it's interesting you say that
28:15
so electric vehicles are still a very small share
28:17
of the vehicles that we have on the platform
28:19
it's growing but it's sub 5%
28:23
and you'll see that I think today we've got
28:25
what 1300 cars or something for sale
28:29
but actually the conversion is pretty good
28:31
I would say it's at least a parity
28:33
certainly more recently
28:37
so actually although it's a small volume
28:43
but I still think it's early
28:45
it's still very very early
28:49
and again there's opportunity for us to support that
28:51
and that's another good example
28:53
of another opportunity for us
28:55
how can we support the profile of those vehicles
28:57
things like battery health
28:59
is there a way we can support dealers on that
29:01
which we haven't invested in yet
29:03
but that's something we're considering
29:05
and again it's a trade off
29:07
is that the right place to focus on
29:09
versus the kind of ice
29:11
and ice business when it's so much bigger
29:13
James I just want to go back
29:15
to the valuations because
29:17
I'd just like to have an understanding
29:21
motorway values these vehicles
29:23
because there seems to me that
29:25
there's an also a trade of retail price
29:27
there's a cap value but then there's also a motorway price
29:31
different to the ones that we see
29:33
when we're valuing vehicles
29:35
how do you as a business
29:37
get to that valuation
29:39
is it pushed by the customer
29:41
or is it pushed by yourself
29:43
or is it a negotiation
29:45
give those people listening and understanding of how it works
29:47
so the process is we
29:51
proprietary pricing
29:53
algorithm that we've built based on
29:55
the hundreds of thousands of cars that we've sold
29:57
through our platform so we've sold over half a million cars now
30:03
really good database of
30:05
the pricing through motorway
30:07
which nobody else has access to
30:09
nobody else has that data or what a trade doesn't have it
30:11
no one else in the industry has it
30:13
and we use that and we do also take
30:15
feet of third party
30:17
pricing so we look at cap as well
30:19
as an input and we will
30:21
set a initial valuation
30:23
based on that pricing algorithm
30:29
assuming the car is in good condition
30:31
we then look at the state of the vehicle
30:33
the condition of the vehicle
30:35
as submitted by the seller and we will make adjustments
30:37
for that and again we're using data that we've
30:43
from the vehicles that we've sold
30:45
and that's it there isn't a negotiation
30:47
that's happening it is a
30:53
dealers can choose to bid at the level
30:55
they want to relative to that price
31:01
sellers is this is a guide price
31:05
our expectation is if the
31:07
dealer bids above that price
31:09
you will accept it because dealers
31:11
have made a commitment of their cash
31:17
you to accept that price
31:19
but we also give them we also
31:23
indicate that there will be instances
31:25
where dealers bid below that price
31:27
and that can still be a good price
31:29
at the end of the day the market
31:31
will determine the best price for that vehicle
31:33
and by the way we still
31:35
see a significant number of sellers
31:37
except below the reserve price
31:39
as dealers see it on
31:41
on our pro platform so
31:43
that's how we do it that's the process we go through
31:45
and we spend a lot of time
31:47
and we have a team dedicated to do this
31:49
understanding pricing
31:51
and looking at it in a very segmented way so it's not just
31:55
we are looking at it by segments to make sure
31:57
that we're getting it accurate
32:01
it's hard it's really hard to price an individual
32:03
car what's most important is what
32:05
the market says that for the value
32:07
of that vehicle is when it goes into the
32:09
when it goes into the auction
32:11
I sent a good friend of mine
32:13
Motorway's way this week
32:15
he had had a party exchange price
32:17
for his vehicle and he actually got
32:19
1500 quid more for it on Motorway
32:21
and it never even considered it
32:23
he hadn't really heard of it so he obviously
32:25
hadn't seen you at first, I don't know where he's been living
32:27
but he was absolutely
32:29
over the moon as you can imagine
32:31
1500 quid more he's buying an electric car now
32:33
and that pays for his charging point
32:35
so he was absolutely over the moon
32:37
and I think it was because his car
32:39
was a popular one you know it was
32:41
it was a popular car do you take in
32:43
to account popularity
32:45
obviously AutoTrader has a retail rating
32:47
a lot of the time when we're buying cars
32:49
we look at that in detail
32:51
when we're buying our vehicle
32:53
and I know other dealers do too
32:55
do you take into do you have your own
32:57
inbuilt Motorway retail rating
32:59
well the way our algorithm
33:01
is constantly updating so it's constantly
33:03
taking data on which
33:05
on the selling prices
33:07
of vehicles and pulling that through
33:09
so yes it is constantly updating to reflect
33:13
market prices that are being
33:15
achieved for those vehicles
33:17
that's how we do it we don't have a
33:19
rating that we can expose to dealers
33:21
but the algorithm itself the way it's set up
33:23
is effectively doing that
33:25
yeah clever very clever
33:27
it's great to hear that
33:29
your friend got that deal
33:31
but it's also there's a dealer
33:33
on the other side of that
33:35
transaction who's purchased it
33:37
at that price and it can
33:39
still make a good margin as well
33:41
and turn that vehicle so that's a nice example
33:45
of course dealers want the lowest
33:47
possible prices but
33:49
that's when it's working really really nicely
33:51
we're matching supply and demand
33:53
effectively the sellers got a great price
33:55
the dealers got a price that they are comfortable with
33:57
they can make margin and turn that vehicle
34:01
just before we move on to our story
34:03
just one last question for you
34:05
you're very close to the use car market
34:07
it's been an interesting year
34:09
what do you think is going to happen next
34:11
what are your predictions for the use car market
34:17
it's difficult to say
34:19
if I look at the macroeconomic
34:25
I think a good year would be a solid
34:27
a solid year next year
34:29
I hope that's the outcome it's going to be
34:31
I'm a little bit nervous about the macroeconomic
34:33
environment if I'm honest
34:35
obviously there's a lot going on at the moment
34:37
and we'll see how that plays out in the coming
34:39
in the coming months
34:43
I don't see it being
34:45
like it has been in previous years that we all experience
34:47
where it's been big swings
34:49
I don't anticipate that at all so
34:51
if you go into the head
34:53
I'd say it's going to be another solid year
34:55
yeah it's going to be interesting
34:57
especially with the budget
34:59
not too far away and find out what happens
35:01
you know next with the economy
35:03
I think and we've talked about this before
35:07
it just going back to the fundamentals
35:09
as a dealer and like making sure you're doing those
35:11
brilliant basics that everyone talks about
35:13
I think just remains really really critical
35:15
so it's working really hard
35:17
to find the stock that works for your dealership
35:19
pricing it effectively
35:21
making sure you've got a really good customer
35:23
experience when someone's
35:25
on your site or comes into
35:29
and then looking at after sales and other
35:33
additional revenue streams
35:35
which some of the dealers that you've been reporting on recently
35:37
have been using to bolster their revenue
35:39
and their margin so I think it's
35:41
consistently doing that stuff
35:43
which is not sexy, it's not a big headline
35:45
but that's how you're going to
35:47
build a great business over time
35:51
James thank you very much for coming on
35:53
chatting us today, I look forward to continuing our conversation
35:57
next week and I do appreciate you
35:59
taking some of those tough questions
36:01
thank you very much
36:03
but John we should probably do some stories
36:05
and James if you'd like to ask James
36:07
anything about the fat content
36:13
he's ready to answer that
36:17
we interrupt this broadcast
36:19
for some breaking news
36:21
John I don't want to panic you
36:23
but the Cardio podcast live is coming round
36:27
yes I know that James because I own
36:29
a calendar but clearly you've been
36:31
not paying attention
36:33
day John if I hadn't been paying attention
36:35
how would I know that it's on the September
36:37
the 24th in Abandon
36:39
that we've got the Polestar boss Matt Galvin
36:41
Vicki Hart from Waylands
36:43
and Alex Bradley from Small Cars Direct
36:47
well technically it's closer to
36:49
Didcot but I'll let that one go
36:51
anyway I bet you've forgotten how people can book tickets
36:53
no John because on my script right here
36:57
cardinamagazine.co.uk
36:59
slash podcast and people
37:01
listening to this can book tickets with
37:03
the special discount code PICCANTO
37:07
there's a social barbecue after the
37:09
recording and plenty of time
37:11
for a social catch up with other
37:13
like minded dealers
37:15
we look forward to seeing you there
37:19
is a paid partnership in association
37:25
oh god you've bought more ducks haven't you
37:27
no ducks John wrong there
37:29
I've actually got a new habit
37:31
I've signed up for Dealerway alongside
37:33
more than two and a half thousand
37:35
other rated and vetted car dealers
37:37
to sell my trade part exchanges
37:39
the site is designed for
37:41
dealers to sell their pie exchanges for more money
37:45
there's no sellers fees and buying
37:47
a car cost just £99
37:49
one of the cheapest around
37:51
and when I haven't got the time to list
37:53
the car myself I can even watch out them the details
37:55
and they do it all for me
37:57
that sounds awfully familiar
37:59
so are you selling all your stock there now
38:03
but if I do have a sudden influx
38:07
I know where to send them
38:09
dealers can find out more at dealerway.co.uk
38:13
we'll be right back
38:15
now John I'm really enjoying
38:17
how easy it is to pay sellers on car well
38:19
I presume you'd rather not pay them at all
38:21
no that is true but
38:23
now I can do it with car well wallet
38:25
you can pay sellers finance houses
38:29
literally in one click
38:31
it's secure easy to use
38:33
and gets rid of all the pesky
38:35
finance back and forth
38:37
it's a total game John
38:39
that does sound pretty good
38:41
if you want to find out more
38:43
dealers can log on to carwell.co.uk
38:45
slash partners slash car well
38:49
now back to the podcast
38:57
are going to run through our favourite stories of the week
38:59
and at the end James gets to decide
39:01
which one of us chose the best ones
39:03
and who is the winner
39:05
oh no I won last week
39:07
yes right so I'm going to start
39:09
and I'm going to start with
39:11
I'm not going to start with JLR because you're going to cover that
39:15
I'm going to talk about the FCA
39:17
so the FCA has and of course
39:19
this is about the car finance scandal
39:23
so the FCA is teaming up
39:27
we've written influencers here but I think the term is
39:31
on the likes of tiktok
39:35
financial influencers James
39:37
you are one of those
39:41
I don't think anyone would
39:43
want my financial advice to be
39:45
completely honest with you
39:47
but they're teaming up with influencers
39:49
to highlight the dangers
39:51
of all these car finance claim
39:53
adverts and using third party
39:55
companies to go chasing car finance
39:57
companies for some form of
39:59
compensation and I mean we've all
40:01
seen this it is all over
40:03
the place it's in Google ads
40:05
it's on I assume it's in TV ads
40:07
but I don't really watch anything
40:09
on terrestrial television so I'm
40:11
not entirely sure I've had it come up on youtube
40:13
I mean it's all over the place
40:15
isn't it and also you've
40:17
seen like I keep seeing
40:21
motoring youtubey people like
40:23
me and Alex Kirsten
40:25
you know they've both been paid by
40:27
different claims management firms
40:29
to tout this sort of stuff
40:31
so it is everywhere and it has been everywhere
40:33
for quite a while now
40:35
and I think the FCA has suddenly woken up
40:37
and realised this that they can't just
40:39
you know mention it occasionally
40:41
in like a common select meeting
40:43
or something like that they need to
40:45
actually get it out to people who
40:47
the FCA is for example
40:49
and put it in their sorts of language
40:53
a one million pound campaign
40:55
which well it sounds like
40:57
a lot of money I don't know if it will be enough
40:59
to be honest to counteract all this sort of stuff
41:01
because the horse is sort of bolted in a way
41:03
but anyway I do kind
41:07
at least trying so at the minute it's just
41:09
one guy on instagram that I can see
41:11
is a guy called Cameron Kaza
41:13
Smith who as far as I can work
41:15
out is a bit like sort of
41:19
it's all written in the story
41:25
I think is sort of like
41:27
Martin Lewis for people that
41:29
would use the word side hustle
41:33
perhaps use the word second business
41:37
I think it's targeting a slightly different demographic
41:41
they are putting the word out to
41:43
basically stop using claims management firms
41:47
and wait for the FCA to
41:49
launch the whole redress scheme
41:51
that is sort of part of the problem
41:53
is that there's not actually
41:55
all these claims management firms are here
41:57
you can go on put in your reg
41:59
it says your road millions of pounds
42:01
and then you sit and wait
42:03
and they probably send you lots of marketing
42:05
activity for the next six months
42:07
to say that they're
42:09
working really hard on your claim
42:13
they've got no news at the minute
42:15
there's nothing to actually do
42:17
so I guess at least they are doing
42:19
something in the interim
42:21
what did you think James
42:23
I think it's interesting
42:25
that they've come out with this campaign
42:27
but the more I think about it
42:29
the more I think about how the FCA is going to deal with this redress scheme
42:31
and I know we sort of covered it before
42:33
but I mean it is such a headache for them
42:35
and I can't help thinking
42:37
that it's just going to be bowled down to something very very simple
42:39
which will obviously cost the
42:41
the banks and finance companies quite a lot of money
42:43
but something as simple as
42:45
did you have finance during these years
42:47
yes or no if it was yes
42:49
you'd do this amount of money
42:51
because if they don't do something as simple as that
42:55
incredibly complicated
42:57
I don't think anybody will ever get any money
42:59
so I genuinely think it will come down
43:01
to something as simple as that
43:03
you just have to prove
43:05
actually you might not even have to prove
43:09
have financed during those years
43:11
and then you'll get the money
43:13
from the affected businesses
43:15
because not all of the businesses were doing the things
43:17
that they shouldn't have been doing
43:21
so I think it will have to be a simple job
43:23
which is in some respects quite good
43:25
because if loads of people suddenly get
43:27
950 quid in their bank accounts
43:29
more often than not
43:31
they end up putting it down as a deposit on a new car
43:37
James other James what do you think of this
43:39
yeah I mean I agree both of you
43:41
I think first of all it's good that they're doing this
43:43
you know we want to try and avoid
43:45
although you're right that the horse was bolted
43:47
to some extent a full kind of PPI
43:51
industry popping up
43:55
probably need to do more than this
43:57
in my experience of educating
43:59
people about new propositions and new processes
44:01
they have to go through
44:03
you could imagine this becoming
44:05
incredibly complicated
44:07
and by the way very costly
44:09
for the FCA to manage if I just think about it
44:11
operationally they're going to have to have a whole claims
44:13
management process that's going to have to flow
44:15
through to all the different companies
44:17
they're going to have to push back information
44:19
so the simpler they can make it
44:23
I think the financial service
44:27
the financing companies will probably
44:29
want some proof James
44:31
otherwise it's an open
44:35
but I think they have to keep it super simple
44:37
the thing that for me as I read this article
44:41
when is all this going to happen
44:43
when's it going to start
44:51
there's no deadline
44:53
for when this is now going to start becoming
44:55
operationalised and being
44:57
accessible by consumers
44:59
industry we just want that transparency
45:03
and then I think the different companies that are affected
45:05
can prepare accordingly
45:07
but at the moment unless I've missed this
45:09
that doesn't seem to be forthcoming
45:13
I'll quote our story
45:15
it says the FCA says compensation
45:17
could begin next year
45:25
can you move this on
45:27
and you have rightly predicted John
45:29
the story that I'm going to go with which is JLR
45:33
talking about it again on the podcast
45:37
difficult situation that manufacturer is in
45:39
I just think we need to cover again
45:41
I spoke to a number of people
45:43
this week for a story on the website
45:45
I spoke to cyber security
45:49
one renowned author of our cyber security
45:51
I spoke to professor David Bailey
45:55
a professor of business studies
45:59
who focuses on the automotive industry about this
46:01
and also John while we're around the road
46:03
we popped into a dealer didn't we
46:05
we popped into a JLR dealer
46:07
in Northampton because on the way up here
46:09
we were just chatting about it
46:11
just thinking yes it's very
46:13
very bad for JLR so I mean the headline
46:15
story is the fact that they have
46:17
Paul's production until
46:19
Wednesday of next week
46:21
but everybody that I'm speaking to
46:23
is very very unlikely
46:25
they're going to be starting it next week
46:27
if I was to hazard a guess
46:29
and I put my neck on the line here
46:31
I can't see them restarting
46:35
for the rest of this year
46:37
I genuinely believe that John
46:39
I think they are in such
46:41
a difficult situation
46:43
there are so many different
46:47
involved in those production lines
46:49
most of them are run by robots
46:51
which are obviously run by computer
46:55
when those cyber security experts
46:57
I spoke to said every day that goes on
46:59
proves that this hack is even
47:05
the fact it's dragged on
47:07
this far we're 19 days in now
47:09
with no production they're already saying
47:11
they can't start until the 24th
47:13
it's going to be incredibly difficult just to restart it
47:15
I mean just think about the restarting
47:17
of that production line you've got thousands
47:19
of JLRs, sound production lines
47:21
and JLR factories around the world
47:23
all with completely different specifications
47:25
you have to clear all of those lines
47:27
you have to start up again
47:31
obviously I'm no manufacturing expert
47:33
John but I can't see that
47:37
but I mean park that to one side
47:39
park JLRs, head offices
47:41
problems to one side
47:43
I want to know what this meant to the dealers
47:45
there are dealers out there who have had
47:47
a rough time over the last
47:51
I was reminded by one of our listeners
47:53
who listened to last week's podcast
47:55
that you remember like not long ago
47:57
we were talking about a past crisis with this manufacturer
48:01
couldn't get parts out to dealers
48:03
you had customers with their cars
48:05
sat in dealerships not being fixed
48:09
which meant that a lot of these dealers
48:11
had to buy back those cars
48:13
because the customers were so cheased of
48:15
so they've already taken a hit
48:17
and this is really kicking them while they're down
48:19
so going back to that
48:21
dealer visit we went
48:23
we popped into Northampton JLR
48:25
it's run by Sittner
48:27
huge site just off the M40
48:29
on the A43 junction there
48:33
it was quiet John wasn't it
48:37
there was a huge row outside
48:39
the dealership of unregistered cars
48:41
lots of Range Rovers sat there
48:43
you do expect to find a dealership
48:47
kind of PDI'd and ready weren't they
48:49
everything was ready apart from the number plates
48:57
we popped into the dealership
48:59
there was a few people in there but nowhere near
49:01
what you'd need to keep the
49:03
lights on in terms of revenue
49:05
there was a couple of people having their
49:09
but we spoke to one of the salesmen
49:13
if I wanted to buy a car when could I get it
49:15
and his answer was I don't know
49:17
he said specking it
49:19
would be quite difficult ordering it
49:21
is a possible but I can't tell you
49:23
when it's going to be made or when you might get it
49:25
he said if you want to use one there's plenty
49:27
out there and we can deal with those
49:29
these dealerships operate that
49:31
by a different system
49:33
but I said so what about servicing
49:35
if I've got a car that's got a problem
49:37
can you fix it he said depends what the problem is
49:39
he said we've got the parts from the shelf
49:43
if we need to order the parts in
49:45
it's going to be a struggle
49:47
it was at that point having to look around
49:51
that must need huge sums of money
49:53
on a daily basis to keep the lights on
49:55
I was thinking there's going to be
49:57
some JLR dealers out there
49:59
who are in serious trouble very soon
50:03
and it just shows you the severity
50:05
of this issue it's not just the manufacturer
50:07
they're in really difficult circumstances
50:11
that big dealer network they've got
50:13
these big gin palaces they've spent millions on
50:17
feel for that supplier network
50:19
there's been a lot of stories come up this week
50:21
but they describe JLR as the hub business
50:25
suppliers relying on it
50:27
and they've been told by some of these
50:29
workers to go on universal credit
50:31
I mean it needs government action
50:33
now I think it needs a furlough scheme
50:37
it is a very very worrying situation
50:39
John I honestly can't think of a bigger
50:41
story for years than
50:45
and it's multifaceted as you say
50:47
we were driving along yesterday weren't we
50:49
and saw a tramp-stag in front of us
50:51
and I was looking at that and thought
50:55
but I was thinking when was the last
50:57
time apart from Covid
50:59
that you saw a car manufacturer grind
51:01
to a halt in quite this
51:05
with previous hacks with Honda
51:07
or however previously had them
51:09
it was kind of a few days a week
51:11
wasn't it and then they sort of got things back up
51:15
I think this has been the longest since
51:17
reason I mentioned tramp-stag
51:19
is since like British Leyland or something
51:21
when it was just constantly
51:23
stopped starting with strikes
51:25
it's just an unprecedented
51:27
I'm bringing that word back
51:29
situation and I guess
51:31
cars and that perhaps that's a different system
51:33
I don't even think it's
51:35
a different system I reckon
51:37
it's a bit like well Arnold Clark had their big
51:39
hack what you soon realize
51:41
after you know X number of
51:43
hours of it being down is right
51:45
what can we actually just do with
51:47
a pen and paper here and probably
51:49
you can sell used cars
51:51
with a pen and paper just like
51:53
you would sell them James if your system went down
51:55
what you can't do is start making
51:57
Range Rovers you know that's
51:59
the line isn't it and I did all
52:01
I saw another story as well not in our publication
52:03
but in esteemed other publication
52:11
cars that were produced in the
52:15
you know being made and then the hack happening
52:17
I think it was into the thousands
52:19
they reckoned it just disappeared
52:21
well not disappeared obviously because they were on lorries somewhere
52:23
but they'd you know in
52:25
whatever distribution system that
52:27
they have presumed that they come out the factory
52:29
they sit in Solihull
52:31
or whatever in an enormous
52:33
yard or they go to Southampton and sit by the port
52:35
ready to go out that of course
52:37
has all gone into disarray I should say
52:39
JLR issued a statement saying that was nonsense
52:41
and they know exactly where every single car is
52:45
slightly implausible
52:47
based on everything else is all
52:49
I would suggest so yes a
52:51
giant giant nightmare
52:53
we talked about when
52:55
we were in the dealership earlier this week
52:57
it takes us we have to log into
52:59
12 different systems to sell a car
53:01
at the Clever Car Collection
53:03
12 different systems to sell a car
53:05
and that is us selling
53:07
sub 10,000 pounds used cars
53:09
I mean can you imagine the systems
53:11
that they have to log into and being locked out of them
53:13
at a JLR dealership is
53:15
it's absolutely devastating and I know
53:19
really feel for them I really feel for everybody affected
53:21
especially those in head office because
53:23
I mean the stress that must be
53:25
involved in trying to get this sorted
53:27
and knowing that it doesn't matter how much money
53:31
it's not going to fix it because
53:35
and if they pay the ransom
53:37
will they even be given
53:39
that's if they are being
53:41
they are being you know
53:43
yes we don't know doing
53:45
but if they are being blackmailed and they do pay the ransom
53:47
they might still not get access to the system
53:49
I don't know it's worrying
53:51
James what do you think?
53:53
Yeah I mean my first reaction to this
53:55
is massive sympathy
53:57
the JLR, the dealers and their suppliers
53:59
I mean this is a criminal enterprise
54:01
that's taken down all of them
54:05
I mean I think lots of other businesses
54:07
look at it and go thank god it's not us
54:09
because it could very easily
54:11
be another business
54:13
and by the way this enterprise has gone after
54:17
a whole bunch of businesses
54:21
it's terrible, absolutely terrible
54:23
given the impact it's having
54:27
if they get it back up and running in three weeks
54:29
they will have done very well
54:31
I'm not an IT security expert
54:33
but my understanding is
54:35
what happens when these
54:37
hackers get into your system
54:41
from one system to the next
54:43
to the next to the next
54:49
so the story about not being able to track the cars
54:51
may not have been correct
54:53
but it doesn't surprise me
54:55
it wouldn't have surprised me if it was correct
54:57
because where's the data
54:59
we can't get into the system
55:03
fundamentally breaking your IT
55:07
and my understanding from M&S
55:13
they had to rebuild the technology stack
55:15
because they couldn't encrypt
55:17
decrypt their systems
55:19
and that takes a long time
55:21
I think it took them three to four months
55:23
to get back fully online
55:25
for everything so that was
55:27
I think they were faster on deliveries but click and collect took longer
55:31
they're not a manufacturing business
55:33
with all of the complexity of the supply chain
55:35
so if they get it back
55:37
I think it was the 26th
55:41
that will be an amazing achievement
55:43
I'm not credit for that
55:45
but I could also see a world
55:47
where it does take them a lot longer
55:49
maybe partial, they get partial systems recovery
55:51
and then it takes a number of weeks
55:53
to get everything back up and running
55:57
it's horrific to be honest with you
55:59
and I think a lot of
56:03
as an exact leading tech business
56:07
you have to do is you have to have the detection systems
56:09
you have to have the testing systems
56:11
actually getting people to try and penetrate the systems
56:13
and then you need the
56:15
the training of your teams
56:17
so that they don't fall prey to these
56:21
hackers but then you need plan B
56:23
if it goes down and part of that
56:27
set up your architecture so you've got air gaps
56:29
between the different systems
56:31
but it's easy to say that
56:35
it's really really challenging for the general
56:37
and let's say the dealers and suppliers
56:43
they can get up and running in the next couple of weeks
56:45
I fear it might take them longer
56:47
but I don't know I don't have all the details about
56:49
what's what's happened
56:51
by the way I would be amazed if they're not being subject
56:53
to extortion as well
56:57
I mean James you know
57:01
it's not about throwing money at this is it
57:03
I don't think you know JLR has got
57:05
deep pockets when it comes to
57:07
support it's got from the Tata Group
57:11
it's not about throwing money at it
57:15
if you've got to do what I described
57:17
which is rebuild your data
57:21
effectively from scratch
57:25
you can throw them up to some extent
57:27
you can throw money at it but it will take time to do that
57:29
and this is just based on looking at other examples
57:31
as I say you can take M&S as a good example
57:33
where they effectively
57:37
that's what they had to do
57:39
and it took them three or four months
57:41
so again I don't know the details of JLR
57:43
I'm not in their company
57:47
it's quite an undertaking if they have to go down
57:51
I can't imagine a scenario where
57:53
if they did the M&S thing
57:55
of saying right we'll start one
57:57
M&S started well we've got to get food
57:59
into supermarkets first let's do that
58:01
don't worry about deliveries
58:03
you can collect all that sort of stuff
58:05
I can't imagine in a setup
58:07
such as JLR what would you not
58:09
prioritise because if you're
58:11
making the cars in the factory
58:13
they've got to go somewhere all the parts are going to come in
58:15
there's lots of different
58:17
it's all just in time isn't it
58:19
the whole entire thing almost has to turn on
58:21
as one unit all at once
58:23
and I suppose it hasn't stopped
58:25
since Covid and perhaps even then
58:27
didn't stop in quite the same way that it has now
58:31
well I mean please do
58:33
I mean the more I talk about it
58:35
and again the more it stresses me out
58:39
well I'll move on to
58:41
another very stressed individual
58:45
Cardila or former Cardila I suppose
58:49
who has not had a very nice
58:51
18 months 24 months
58:53
it's a situation that's fumbled on for a while
58:57
oh my god right well
58:59
anyway Kevin Mackey for those who have forgotten
59:01
or haven't heard of him before
59:03
had a very successful
59:05
Renault dealer up in
59:09
had been going for it it was a family business
59:11
Mackey Motors had been going for quite a long
59:15
and then one day in 2021
59:21
pulled the plug effectively
59:23
so if you're mainly a franchise
59:25
Cardi or as he is I don't know
59:27
had any other franchises apart from Renault
59:29
or perhaps he had a Nissan one as well
59:33
is Renault and Nissan's
59:39
a little bit like the JLR situation
59:41
a lot of things all tied in together
59:45
Renault, Nissan, Bank
59:47
and Renault pulled the plug effectively
59:49
on his business and they
59:53
it's difficult to talk about because it's going through
59:55
a legal case so he's taking
59:59
three companies to court
00:01
over what happened because
00:03
in effect they turned his company off
00:05
overnight because they withdrew
00:07
funding which as anyone would know
00:09
is well it's an immediate stop
00:11
isn't it as I understand it
00:13
they pulled his new car
00:17
I believe they pulled the
00:21
authorized repairer situation
00:23
so almost overnight
00:25
he didn't have a Renault dealer anymore
00:27
which is quite hard
00:29
to come back from when you employ
00:31
the number of people that a franchise dealer
00:33
employs they're all working
00:37
and we've covered this case quite a lot
00:39
Kevin's been talking to
00:41
one of our staff writers Jack Williams
00:45
the period about all this but of course
00:47
it goes a bit quiet because things are
00:49
going through legal matters blah blah blah
00:51
I can't keep talking while that sort of stuff's happening
00:53
but it's come back into the news
00:55
because he's appeared on
00:59
I admit it's not an outlet I particularly like
01:01
but it has given him some
01:03
great coverage of this matter
01:05
so he's been talking to none other
01:09
about the situation
01:11
of course well they describe it as
01:13
GB news described it as him being debanked
01:15
which in a way he was but I think
01:19
the issue really because it's not really
01:21
about the bank necessarily it's about
01:25
being pulled from under him across lots
01:27
of different situations you know it's not just
01:29
that he's had his bank account frozen
01:31
or they've said you can't bank with this
01:33
anymore they've said all of those
01:35
cars on your forecourt you're going to need
01:37
to find funding from someone else and that's a very
01:39
different situation
01:41
to you know being told you need to move your savings
01:45
he's been on there and
01:47
he had quite a bit of publicity from
01:49
that which is a good thing
01:51
and since then he's
01:53
had his I'm trying to find the right
01:57
case brought up by his local
02:01
in some sort of commons hearing as well
02:05
quite outspoken in the situation
02:09
I'm trying to pronounce this in a
02:11
Scottish no I'm not going to do that
02:15
I want to use the f-bomb so I've described it
02:17
as a cluster fankle up
02:19
which is another term
02:23
I did love that that term John
02:25
and I think I slightly worried about
02:27
what AI thinks of me
02:29
because in my last few searches
02:31
to chat GBT I've got
02:33
can you give me the Volkswagen Up 2013
02:37
who's Cameron Kazasmith
02:39
and what does cluster fankle mean
02:43
what was the answer
02:45
was a Scottish way of saying
02:47
cluster the rude word
02:49
but without saying the rude word
02:51
which I was quite impressed he did
02:53
in the House of Commons
02:55
without saying the rude word
02:59
I mean presumably you are allowed to say the rude word in there but anyway
03:07
it seems a very complicated matter
03:09
we want to get into all of the ins and outs of it
03:11
but there's been a lot
03:13
of finger pointing between
03:15
I mean I'll quote the MP
03:17
my constituent has been to the Financial Conduct Authority
03:19
who told them to go to the police
03:21
who then told them to go back to the FCA
03:23
who then told them to go to
03:27
you could not make this up
03:31
no one seems to know really
03:33
what to do in that sort of situation
03:37
Kevin will get some answers
03:39
it's hard to comment
03:41
on this one John as it is
03:43
going through the course
03:45
but I mean one thing I have to say
03:47
is I do admire Kevin Mackie's
03:49
persistence on this
03:51
he's certainly not letting
03:55
completely understand why
03:59
I mean we obviously don't know all of the facts
04:03
he's certainly trying hard to keep this one going
04:05
and to get some justice
04:07
and I do hope like you say
04:09
he gets some answers as well
04:13
do you want me to move on?
04:15
James I mean I don't really
04:17
it's been quite hard for him
04:19
it's kind of difficult to comment on this one
04:21
because I mean first of all I can understand
04:27
it's just difficult to comment
04:29
when you don't know the other side of the story
04:31
I don't know what's precipitated this
04:33
and so it's just harder
04:35
to come to a point of view on it really
04:37
it sounds terrible but
04:41
we don't know the other party's
04:43
perspective on it so
04:45
hard to comment on that one
04:47
John have I got time to wedge one more
04:49
please wedge, wedge away
04:51
wedge away, I'd just like to talk
04:53
there's a number of car dealer results come out this week
04:55
there's quite a few of them coming
04:57
it's obviously getting towards the end of September
04:59
where it's the point that you have to
05:01
get them in with companies house
05:03
and it's an interesting time for us because we get
05:05
real insight into how people
05:07
perform last year and the one I just want to
05:11
Toyota specialist Stephen Eagles
05:13
results I mean he is a
05:17
he turned over a record
05:25
profits up slightly to 15
05:29
despite very tough market conditions
05:33
and just remember this is a guy that only represents
05:39
the largest Toyota dealer
05:43
he sold 55,000 vehicles
05:47
an absolutely staggering result
05:49
and they paid themselves
05:51
8.27 million pounds
05:53
in very well deserved dividends as a result
05:55
but congratulations to
05:57
Steven Eagle an amazing business
05:59
we did an interview
06:01
with him on the Cardiola magazine
06:03
YouTube channel there's a podcast out there
06:05
about inspiring leaders
06:07
and he is certainly one of those
06:09
and for those people interested I would say go and check that out
06:11
because he's got an amazing story
06:13
how he started that business
06:15
with Toyota's help back in the day
06:17
and has built it into an absolute
06:19
juggernaut so congratulations to him
06:25
as a manufacturer doesn't he
06:27
well in the last two years
06:29
he swept up a lot of Marshall
06:31
Toyota sites which were X motor
06:35
so yes he's obviously a preferred
06:39
I mean he's talked about eggs in one basket though
06:41
it's very Toyota centric
06:43
isn't it but it obviously works
06:49
lovely I won't ask for James
06:51
to comment on that because
06:53
of this hotel very soon James
07:01
before I ask for your verdict are there any
07:03
stories you think we've missed this week
07:05
I think we've got a good coverage
07:07
nothing for me to add
07:09
I mean there are other stories but
07:11
conscious of time so
07:13
you need to get your sausages
07:15
out of the hotel rooms
07:17
that is a real danger
07:19
we'll leave them behind
07:25
so I'm going to have to ask you
07:27
who chose the best stories
07:29
or what was your favourite story
07:31
it's hard to call it a favourite but I do
07:33
think the JLR story is
07:35
the one that stands out because of the
07:37
impact it's having and the importance
07:41
for not just JLR but
07:43
as we talked about dealer suppliers
07:45
the whole industry so
07:47
definitely that one stands out for me
07:51
they manage to get themselves back online
07:53
and it doesn't take too long so fingers crossed
07:55
and all the best to them
07:57
and the dealer suppliers are impacted
07:59
I will take that win
08:01
thank you very much James
08:03
what's up at the scores in the series
08:07
I'm going to say 14
08:09
I'm going to write it down on this Novitel
08:15
I didn't get one of those
08:17
must be exclusive to the lovely sweet
08:21
all that's left for me to say
08:23
is thank you to James for coming on today
08:25
it's been lovely to chat to you
08:27
and chat about Motorway and of course we will see you
08:29
next week on Wednesday and
08:31
if anyone listening wants to come see you as well
08:33
and have a good chat just go and buy a ticket
08:35
to Cardila podcast live
08:37
with a complimentary barbecue
08:41
very nice to see you
08:43
thank you very much
08:47
and thank you as well to James
08:49
for regaling us with tales
08:53
we'll be back next week
08:55
with another episode and of course there probably will be
08:57
an interim episode as well
09:01
so make sure you're subscribed take me notified when that goes live
09:03
if you want to check out the stories you mentioned today
09:05
take a look in the show notes below
09:07
or head to cardilamagazine.co.uk
09:09
thanks for listening and goodbye