January 2018

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Jan 25, 2018 - Following four very successful workshops on GDPR, we will be holding two additional workshops looking at
NATIONAL MOTORCYCLE DEALERS ASSOCIATION NEWS JANUARY 2018

KTM 390 DUKE, best-selling machine in December 2017 Dear Colleague, Welcome back after what we hope was a relaxing and enjoyable Christmas break! The NMDA will be exhibiting at the Motorcycle Trade Expo, kicking off this Sunday 14 - 16 January at Stoneleigh Park! Come and visit us at our stand – B81 and have your questions, concerns answered and advice given! Oh and a free cup of coffee! Demand for motorcycles in 2017 continued their downward trend with the year-end registrations down -18%, (23,177 less bikes) on the previous year. We have looked at the market in depth and given a full analysis in this month’s news below. Following four very successful workshops on GDPR, we will be holding two additional workshops looking at the more specific issue of contract remediation. The workshops, run again by TLT solicitors, will take place on Thursday 1 February and Friday 9 March at the Warwick Hilton. Finally, I would like to take this opportunity to wish you all a very Happy New Year. We look forward to working with you all in 2018! Steve Latham Head of the National Motorcycle Dealers Association

IN THIS ISSUE:

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NMDA EXHIBITING AT MOTORCYCLE TRADE EXPO 2018 – **THIS WEEKEND** NMDA MEETING – 25 JANUARY 2018 CHALLENGING YEAR FOR 2017 BIKE MARKET MEET THE CHALLENGE OF GDPR COMPLIANCE WITH NMDA MILS LEGAL UPDATE IMPROVING MOTORCYCLE TRAINING: CONSULTATION RESULTS NMDA/RMI ACADMEY FOR MOT CLASS 1 & 2 MOTORCYCLES

NMDA EXHIBITING AT MOTORCYCLE TRADE EXPO 2018 – **THIS WEEKEND**

Results of the NMDA Dealer Attitude Survey and the development of the trailblazer apprenticeship standard are just some of the issues you can discuss with the NMDA at the Motorcycle Trade Expo which kicks off this Sunday 14 – 16 January 2018 at Stoneleigh Park, Warwickshire. The NMDA represents the interest of motorcycle dealers in the UK and holds regular discussions with the relevant government departments and motorcycle manufacturers to raise industry concerns, and keep abreast of the latest changes to support its dealer members. Come and have a coffee with us at our stand – B81 and discuss industry issues, outline concerns and get business advice. We look forward to seeing you there!

NMDA MEETING – 25 JANUARY 2018 The first NMDA meeting of the new year will be taking place on the 25 January 2018 at our London offices and is open for all NMDA members to attend. For more details and to register your attendance, please contact [email protected]

CHALLENGING YEAR FOR 2017 BIKE MARKET Demand for motorcycles in 2017 continued their downward trend with the year-end registrations down -18%,

(23,177 less bikes) on the previous year. We expected a decline in the market in 2017 following the final quarter of 2016 registrations of Euro 3 bikes by the December 31 deadline. However the scale of the decline surprised many of those selling low powered machines, as to just how many dealers and manufactures pre-registered these bikes. It is important to look at the underlying traits and see how they could affect this year’s new registrations. Over the previous 3 years sales have been on the rise, with 2017 marking the first year of decline: • • • •

2014 - 101,277 sales 2015 - 115,121 sales 2016 – 128,644 sales 2017 – 105,467 sales

Without the Euro 3 run out in 2016, it is possible that sales would have remained stable and in line with the previous years. For example, if the market had stayed in line with 2015’s registrations of 115,121 units, which would have indicated that 13,523 additional machines would have been pre-registered. All these additional licenced motorcycles will have supressed demand in the 2017 for new product. If we estimate the true demand for motorcycle sales in 2017, taking into account the stable market from 2015 and reduce it by the oversupply of pre-registered Euro3 machines estimated at 13,523 units, then the projected results for the total 2017 sales would have been worse at just 101,598 new registrations - not so far off the actual total of 105,467 machines registered in the year. We could analyse the true market demand by removing all registrations up to 125cc for both 2016 and 2017 these being the most common pre-registered Euro 3 machines. This would then show the following result of new motorcycle registrations above 125cc; • • •

2016 - 68,977 sales 2017 – 65,963 sales Shortfall - 3,014 sales (-4.37%)

A loss of -4.37% is a truer reflection of the market and similar to car registrations which showed a decline of -5.7% , and van registrations up to 3.5t showing a similar market decline of -3.6% for 2017. The reality is if you force a market by a huge amount in one year you will get an equivalent decline in the following year while the units wash through an oversupplied market. Looking ahead into 2018, we expect that demand should become more stable, however there is still an underlying uncertainty in the economy over Brexit and further reduction of sterling’s value that could push up retail prices still further.

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 this year, the NMDA is now holding two additional

workshops 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 franchised 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:

Thursday 1 February and 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 the NMDA on 01788 538303 or email [email protected]

MILS LEGAL UPDATE

Can an employer use in-vehicle tracker systems to monitor staff? “We have 2 van drivers working for the business collecting bikes, and we would like to fit trackers to each of the vehicles. Are there any issues with this that we need to consider?” In this situation, employers need to be aware of The Information Commissioners Publication: The Employment Practices Code, that says if in-vehicle monitoring is or will be used, employers must consider – preferably using an impact assessment – whether the benefits of using the system will justify the adverse impact. Any letter or policy on the use of tracker systems should also clearly set out the details of the nature and extent of the monitoring. Informed consent is ultimately what employers need to be looking for. It would be necessary to set out in a letter or preferably a specific policy stating the legitimate business reasons and details of the nature and extent of the monitoring. Employers should also be aware that issues can arise if work vehicles are also being used for private purposes. It would be necessary to set out in a letter of preferably a specific policy stating exactly what private use can be

made of vehicles and any conditions attached to their use.

IMPROVING MOTORCYCLE TRAINING: CONSULTATION RESULTS

In 2017 the DVSA held a consultation on proposals to improve the way that motorcycle training works in Great Britain. They received over 2,200 responses and the proposals were strongly supported by many in the motorcycle industry. Update the qualification process for motorcycle instructors The DVSA would like to replace the current compulsory basic training (CBT) and direct access scheme (DAS) instructor assessments with a single assessment. Instructors would then be able to provide training for all categories of motorcycle after passing it. 87% of those who responded to the consultation supported improving the way that instructors qualify to provide motorcycle training. Update the content and structure of the CBT syllabus The DVSA proposed to update the CBT syllabus, so it is aligned more closely with the national standard for riding mopeds and motorcycles. Riders will be required to ‘know and understand’ rather than ‘be taught’ the different elements in the CBT syllabus. This reflects a more modern approach to client-centred learning. The majority of those who responded to the consultation agreed we should restructure CBT courses to focus on:    

the importance of equipment and safety clothing on-site training motorcycling theory on-road practical riding skills.

The DVSA will update the NMDA when the changes to the CBT syllabus will be implemented. Strengthen the quality assurance scheme for motorcycle instructors The DVSA want to introduce mandatory quality assurance checks for all approved motorcycle training courses (this includes CBT, DAS and any future progressive access training courses). This would give assurance that training is being provided to the required standard. 97% of those who responded to the consultation support increasing the range of checks that DVSA carries out on motorcycle training schools Introduce a licence upgrade training course The DVSA proposed to introduce a training option to let riders below the age of 24 ride larger motorcycles by progressive access, without having to take a further practical test. 92% of those who responded to the consultation support introducing a training course that existing riders can take to upgrade their motorcycle licence. The DVSA need to carry out a further consultation to work through the details of how the licence upgrade training course will work. We plan to consult on this in Spring 2018 and will let you know when we announce this. Restrict learner riders to automatic motorcycles if used for CBT It is important to restrict riders to the type of motorcycle that they completed CBT with. This will make sure that riders have the skills they need when riding independently. 84% of those who responded to the consultation agreed we should restrict riders who take their CBT course on an automatic motorcycle to only riding automatic bikes. This is something the DVSA need to carry out a further consultation on, to see how this will work. They will also need to look into how riders that complete their CBT on an automatic motorcycle can upgrade their license to manual afterwards. Revoking CBT certificates The authorities proposed that CBT certificates should be revoked if the learner rider gets 6 penalty points, during the 2 year validity period of their CBT. This means that they will be unable to ride until another CBT course has been successfully completed. The majority of groups support revoking CBT certificates from riders who get 6 penalty points as it would stop learner riders from riding with L plates after getting points for offences including careless or dangerous riding. This is something the DVSA will need to carry out a further consultation on, to see how this will work with the DVLA. A digital platform for the CBT administrative process DVSA want to explore options, with DVLA, to move the administration of CBT from its current paper-based system to a digital platform. 90% agreed that the CBT administration process should be on a digital platform. Many people considered that it would be easier to check the expiry of their CBT certificate online.

The DVSA intend to introduce a digital platform as soon as we can, but this will be dependent on other IT priorities both at DVSA and DVLA. Theory test before or as part of CBT The DVSA thinks it is really important all learner riders pass a theory and hazard perception test before taking their CBT. It will make sure new riders have the theoretical knowledge and understanding of the rules of the road before they ride independently. 85% agreed new riders should have to pass a theory test before they take a CBT course, or as part of their course, to help them ride safely on our busy roads.

NMDA/RMI ACADMEY FOR MOT CLASS 1 & 2 MOTORCYCLES The NMDA/RMI Academy will be running the following courses for Class 1 & 2 motorcycle MOT tester training.  

Southam: 14 – 16 February 2018 Runcorn: 26 – 28 February & 12 – 14 March 2018