Vertu has welcome a consultation on the Zero Emission Vehicle Mandate, but Mr Forrester has warned it is unlikely to go far enough
Robert Forrester, chief executive of Vertu Motors(Image: supplied pic, free to use)
The boss of car retailer Vertu has talked of a strong start to the year following the firm’s second profits upgrade within three months.
Gateshead-based Vertu told investors to expect full year profits ahead of £26m as sales have increase across the national showroom operator’s new and used cars offer. CEO Robert Forrester said he believes the group – which runs 194 sales and aftersales sites in the UK – is growing its market share amid a significant marketing push that has included becoming the main shirt sponsor at Burnley FC and TV campaigns.
In a trading update for the five months to the end of July, Vertu reported a 4.6% rise in group revenues. Volume of new vehicles was up 8.7% while used sales were up 4.4.%. A rise in aftersales revenue has also helped grow group profits year-on-year. Bosses also said new vehicle order books for July-September were ahead of previous years.
Vertu has moved to open new outlets for Chinese brands in recent years and now runs 18 such sites, with the group’s first Omoda and Jaecoo sites launched in Burton last month. This month it opened its first Leapmotor outlets in Harrogate and Crewe, with work under way to bring a Geely forecourt to Teesside.
In Nottingham, Vertu has opened its first site for Renault Group-owned performance brand Alpine, alongside existing Renault and Dacia outlets. Closer to home, the group’s Morpeth-based Ford, Honda and BYD showroom has outgrown its current pitch and will expand into premises across the road. While in Hartlepool, £800,000 will be invested to create a major redevelopment of a dealership for BYD.
Mr Forrester said: “It’s our second profits upgrade in three months, which is good. We’ve had a strong start to the new financial year.
“I think the business is in a very strong position, operational we are in a good place. We’ve got lots of good initiatives that are adding value. And we’re making a lot of changes to the portfolio to reflect the changing nature of the sector – particularly the growth of the Chinese manufacturers – and everyone on the team has done a very, very good job.
“I don’t think it’s the easiest of sectors but we’re giving a good account of ourselves.”
Meanwhile, Vertu has welcomed the Government’s consultation on the controversial Zero Emission Vehicle (ZEV) Mandate, which has been criticised by the industry for pushing manufacturers to sell battery electric vehicles (BEV) ahead ahead of demand. Mr Forrester, who has been outspoken on the issue, said “something needed to happen” but pointed to concerns about the “almost prescriptive” nature of the consultation.
He said: “For example, the industry has been asked to consult on whether it wants a target for 2030 of 50% for BEVs, 60%, 70% or 80%. Well, to be honest its ‘none of the above’. When we get to vans, the lowest they’re proposing for 2030 is 40% – well the industry is currently on 9%.”
Mr Forrester added: “The manufacturers of new cars are making the cars far more affordable, actually. They’re trying to drive the new car market. It’s very difficult for them because of the ZEV Mandate and the electric targets – that’s make life very difficult for the manufacturers – but they are putting their best foot forward and there are some great offers out there.
“I think if you’ve got an older car that is starting to go wrong and you’re starting to click into big repair bills then actually it can make more sense to get a newer car or even a new car, or perhaps another used car with a warranty as well.”
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