Following our very successful workshops on GDPR, we will be holding an additional workshop ... how to review their third
NATIONAL MOTORCYCLE DEALERS ASSOCIATION NEWS FEBRUARY 2018
BMW R 1200 GS, best-selling large motorcycle in January 2018 Dear Colleague, Demand for motorcycles in January was up 11.8% on the same period last year registering 5,458 units. However, this was expected as last year the market was flooded with a high volume of pre-registered bikes for sale. We are expecting 2018 to be a challenging year for the industry. Following our very successful workshops on GDPR, we will be holding an additional workshop looking at the more specific issue of contract remediation. Contract remediation is a crucial element of GDPR compliance for motorcycle dealers and the workshops will show dealers how to review their third-party contracts, including those with manufacturers, finance houses and dealer management systems. The workshops, run again by our retained solicitors TLT, will take place on Friday 9 March at the Warwick Hilton. If you would like to attend please email
[email protected] . A reminder that the NMDA is your trade body and here to help and advise you on regulatory and operational issues that affect your business. However, if there are issues that we have not covered or you have concerns about, please do contact us on the NFDA helpline 01788 538303. Steve Latham Head of the National Motorcycle Dealers Association
IN THIS ISSUE:
JANUARY DRIVES MOTORCYCLE SALES UP MOTORCYCLE MARKET FACES A CHALLENGING 2018 MEET THE CHALLENGE OF GDPR COMPLIANCE WITH NMDA TRAILBLAZER TECHNICIAN APPRENTICESHIP – UPDATE REGIONAL REPRESENTATIVES AT NMDA QUARTERLY MEETINGS MOTORCYCLE SAFETY RECALLS JANUARY 2018 FIRST BIKE MOT TEST TO REMAIN AT 3 YEARS THE BATTLE CONTINUES AGAINST MOTORCYCLE CRIME NMDA/RMI ACADMEY FOR MOT CLASS 1 & 2 MOTORCYCLES
JANUARY DRIVES MOTORCYCLE SALES UP Demand for motorcycles in January was up 11.8% on the same period last year registering 5,458 units. However, this was expected as last year the market was flooded with a high volume of pre-registered bikes for sale. Most of the power ranges showed signs of growth, including light weight bikes up to 125cc of which a high number were pre-registered in 2016. There has been a steady decline in the sub 50cc moped market, however even that was up last month. The most significant growth came from the 126-650cc market which was up almost 40%, registering 1,279 units this year compared to just 914 last year. The over 1000cc power-two-wheelers showed a positive improvement with 26.1% growth - indicating that the dedicated enthusiastic rider is still prepared to upgrade their expensive motorcycles. The top selling brand in January was Honda with 1,272 bikes registered, followed by Yamaha who registered 564 bikes, and thirdly KTM with 449 bikes. January is not typically known for being a high volume month for bike sales, so this is a clear indication of new customer confidence in the power-two-wheel market.
MOTORCYCLE MARKET FACES A CHALLENGING 2018 The NMDA is expecting 2018 to be a challenging year for the motorcycle industry. We have carried out extensive economic research in order to estimate the size of the foreseeable market for this year, taking into account the strong global economy which has a predicted growth of 3.9% in 2018, and the sterling which is back to its pre-Brexit strength of $1.40. In 2017, despite uncertainty over Brexit, the UK economy grew a modest 1.8%, however demand for motorcycles continued their downward trend with the year-end registrations down -18%, (23,177 less bikes) on the previous year. In total, 105,467 bikes were sold in the year. One of the main factors for this was the final quarter of 2016 pre-registrations of Euro 3 light weight bikes by the
December 31 deadline, which were the sold throughout the year, hence reducing the demand for new registrations. It was estimated that around 12,250 power2wheelers were forced registrations, predominantly 125cc machines. Most of these machines have now found new owners and should not affect consumer demand for new bikes this year. Looking closely at all these figures, we estimate that bike sales should increase modestly by 3.27% with 108,924 registrations, closely resembling the Motorcycle Industry Association (MCIA) prediction of 108,450 registrations. Glasses Guide has predicted a market of 110,000 - 115,000 registrations. Upper Estimate 0-50cc 51-125cc 126-650cc 651-1000cc Over 1000cc
2017 7,871 31,633 17,714 26,888 21,361
2018 6,783 33,778 19,245 26,913 22,205
Difference -1,088 2,145 1,531 25 844
Total registrations
105,467
108,924
3,457
However, we are concerned that this challenging prediction could be undermined by issues such as the current surge of scooter related crime in London, the increase in insurance premiums in metropolitan areas for young people, and negative speculation over the ongoing Brexit negotiations. Therefore, taking into account all of the above scenarios potentially affecting sales, a lower estimate has also been analysed - producing a very similar market to 2017. Lower Estimate 0-50cc 51-125cc 126-650cc 651-1000cc Over 1000cc
2017 7,871 31,633 17,714 26,888 21,361
2018 6,244 31,781 18,729 26,452 21,968
Difference -1,627 148 1,015 -436 607
Total registrations
105,467
105,175 -292
We estimate an increase in sales in all sectors, with the exception of the 0-50cc machines. This is due to the fact that this sector has been steadily declining for some time now and in December 2017 there were between 700 800 motorcycles pre-registered to elevate the 50cc Euro transition. Whilst 2018 is set to be a challenging year for motorcycle dealers, we are optimistic that some of the traditional and leisure riders will return to the showrooms to purchase the latest bikes for the new season and in return stabilise the bike market.
MEET THE CHALLENGE OF GDPR COMPLIANCE WITH NMDA You will no doubt be aware of the significance of the new General Data Protection Regulations (GDPR) that come into force in May 2018. The new GDPR apply to all organisations that control and process personal data. Failure to comply with GDPR can result in fines of up to €20 million or 4% of annual turnover for the most serious contraventions. Following on from our very successful GDPR workshops held last year, we are holding a workshop
looking at the more specific issue of contract remediation for GDPR compliance. Contract remediation is a major element of GDPR compliance and one that is essential for all motorcycle dealers. The workshop will look at how members should review their third-party contracts, such as those with manufacturers, finance houses and dealer management systems, to check and rate their GDPR compliance and risk. It will also advise on how you should amend these contracts to make them compliant. Additionally, we will also ask attendees to bring with them one of their data sharing arrangements to use as an example to be worked through during the workshop. Dates: Venue: Time:
Friday 9 March Hilton Hotel, Stratford Road, Warwick CV34 6RE 9.30 am refreshments, 10.00 am workshop commences, 3.30 pm close
(a buffet lunch will be provided) Places will be allocated on a first come first served basis as space is limited. Due the considerable resources required to hold these events, there will be a nominal charge of £99 including VAT per person to attend. If you would like to attend please contact he NFDA on 01788 538303 or email
[email protected]
TRAILBLAZER TECHNICIAN APPRENTICESHIP – UPDATE We would like to update members on the latest progress on the development of a new Motorcycle Trailblazer Apprenticeship Standard for 16 – 24 year olds. This new Trailblazer standard will replace the current framework in place for apprenticeships, which the Government will be withdrawing funding for within the next two years. A Trailblazer group is made up of employers who work together to design new apprenticeship standards for occupations within their sectors. The new standards will be short (one/two pages) and describe the level of knowledge, skill, and behaviours required to work in a particular role. They should be stretching, and require 24 36 months of training to meet the standard, and will include an assessment criterion called the ‘End Point Assessment’. On completion, this will provide the qualifications needed for a career within the sector. In 2015, the NMDA formed a group of 15 motorcycle dealers to work on developing a new ‘Motorcycle Technician Apprenticeship Standard’, which would essentially enable dealers to be funded from this year following the 0.5% employer levy which was introduced in April 2017. Due to the continuous changes from the Government on the rules and requirements of the written assessment, the trailblazer group has been meeting quarterly under the Chairmanship of Bolton Triumph dealer, Philip Youles. The NMDA is still working on the ‘End Point Assessment’ 2 years later. We endeavour to complete this detailed and complex piece of work later this year, however I cannot stress strongly enough to our members the amount of time and effort that has gone into this project, both from the NMDA and your dealer colleagues. On completion of the apprenticeship standard, we will have successfully secured the future of our industry, therefore I must express my thanks and gratitude to all who have made a significant commitment and contribution in helping to develop this apprenticeship standard.
REGIONAL REPRESENTATIVES AT NMDA QUARTERLY MEETINGS The NMDA Executive committee meet at our London office every quarter to discuss and plan for issues affecting members who run motorcycle dealerships. The group is made up of members who actively run their own businesses, and give up one day every quarter for the benefit of the association and its members. At the last meeting held in January the following issues were discussed:
New motorcycle registrations Used motorcycle sales Lobbying for better recognition of power two wheelers Economic forecasting of market size in 2018 Membership statistics and new members Motorcycle crime in metropolitan areas Manufactures dealer agreements Outcome of having a stand at Motorcycle Expo Progress with Trailblazer Motorcycle technician apprenticeships Potential effects of Brexit Changes effecting emissions and the move to electric bikes
Many of our members attending these meetings represent dealerships in the south, so we would be very pleased to have in attendance members from the North, Midlands and Wales. For more details on the next meeting please email
[email protected]
MOTORCYCLE SAFETY RECALLS JANUARY 2018 These are the motorcycles recalled by manufacturers for a safety reason in January 2018. DVSA reference number
Make and model
RM/2017/037
MV Augusta: Dragster RR
Issue Brutale
800
Defective rear wheel rim can allow spokes to loosen and cause the wheel to fail
FIRST BIKE MOT TEST TO REMAIN AT 3 YEARS The Government has announced that the first MoT test will remain at 3 years motorcycles. Ministers put road safety first decided to maintain the period before a motorcycles first MoT test at 3 years. The move comes after a Department for Transport consultation last year to consider changing the wait before the first test to 4 years. The NMDA were against the proposals on safety grounds, arguing that the savings to motorcyclists were outweighed by the risk to road users, as the test often highlighted upcoming issues affecting these power two wheelers.
A public survey for DfT by Populus also showed fewer than half of people were in favour of the change. Roads Minister Jesse Norman said: We have some of the safest roads in the world, and are always looking at ways of making them safer. Although modern bikes are better built and safer than when the MoT test was last changed 50 years ago, They often cover greater mileage than in the past and there has been a clear public concern that any further changes must not put people’s lives at risk. We are looking at further research to ensure the MoT test evolves with the demands of modern motorcycle riders. By law, all power2wheelers must be roadworthy, regardless of whether they have passed an MoT, and the content of the tests will not be changed. The test was introduced in 1960, requiring all vehicles to undergo a first check after 10 years. It was then changed in 1967 to 3 years. In 2016 (the most recent figures available), more than 2.4 million cars and motorcycles had their first MoT test. The pass rate was about 85% and the most common reasons for MOT failure include lighting, tyres and braking faults.
THE BATTLE CONTINUES AGAINST MOTORCYCLE CRIME
The NMDA recently attended meeting at the Home Office to discuss how best we can work at reducing motorcycle
theft and criminal activities using these stolen bikes. It was positive to see that due to a more focused approach to combating this moped-crime epidemic, thefts of power two wheelers reduced by 15% for the first time in the last quarter of 2017. Since closer monitoring of the consequential criminal activities that result from these thefts, we concluded the following:
90% of crime conducted on stolen motorcycles was snatching mobile phones The greatest proportion of victims are aged 19 – 32 years old The highest volume of crime is committed around London on Tuesdays and Fridays Apart from lunch times, the most likely time of snatch theft using motorcycles is 4.00pm to mid-night with the peak time being 6.00 – 8.00pm on the way home from work The greatest volume of motorcycle enabled crime is committed by 14 -17-year olds, followed by 18 – 21year olds
In 2017 more pursuits took place and prosecution levels increased. The deterrents have increased since the authorities are now combining the criminal offence along with the road /rider offences and anti-socials offences.
Overall theft of all motorcycles increased in 2017 over 2016, even allowing for the decrease in the last quarter of that year. Over half of all motorcycle theft in 2017 was reported in three Metropolitan areas, London, West Midlands and Manchester.
We often hear through the media that the riders are armed with weapons and acid – and whilst this is very serious and does happen, it is very rare. However it does deter riders commuting into the capital. Part of this groups work is to be open in its approach to decreasing moped-crime, and as such the manufacturers and dealers have researched the following:
All new motorcycles are fitted with a physical steering lock as standard Around 74% of new motorcycles are protected by the Police approved ‘Master Scheme’ 76% of new motorcycles are fitted with electronic immobilisers All dealers offer and promote additional ‘Sold Secure’ or Thatcham approved aftermarket security devices at time of sale or as accessories at the point of service
The areas that need improving to reduce crime statistics still further are as follows:
Local Authorities to offer standardised securing bolts at road side Riders to carry and fit additional security devices when they park For insurance companies to recognise in their rates, good riders who are securing their machines properly, also applying insurance policy conditions on riders to ensure they minimise the risk of their bikes being stolen by using the appropriate security deterrents. This may place a differential between policy price of secure and non-secured riders and protect rider’s insurance costs of lower powered commuting scooters and motorcycles.
We will be meeting with the Home Office in the Spring and will update members then on the progress in combatting power two-wheeler crime.
NMDA/RMI ACADMEY FOR MOT CLASS 1 & 2 MOTORCYCLES
