NATIONAL MOTORCYCLE DEALERS
ASSOCIATION NEWS
NOVEMBER 2016
Dear Colleague,
This month’s NMDA news
contains all the latest
motorcycle information,
plus other issues facing the
sector.
Honda PCX 125; best-selling model in October 2016
Demand in the motorcycle
market cooled in October
recording a growth of just
0.3%. A total of 8595 units
were registered in October
2016 – just 22 more bikes
compared to the same
period in 2015.
We have now published the
latest results from the
NMDA Autumn Dealer
Attitude Survey. The
received a response rate of
30%. Over the last few
years there has been a view
that brands with a low
percentage of dealer
responses have not
necessarily been
representative of the views
of that network, and could
skew the results either way.
Please see today’s news for
more details.
Steve Latham
Head of NMDA
IN THIS
ISSUE:
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OCTOBER PUTS BRAKES ON MOTORCYCLE DEMAND
NMDA DEALER ATTITUDE SURVEY AUTUMN 2016 RESULTS REVEALED
WE VOICE OUR CONCERNS OVER RISING LEVEL OF MOTORCYCLE AND SCOOTER THEFT
LEGAL UPDATE: EMPLOYEES WORKERS OR INDEPENDENT CONTRACTORS
CHINESE DEALER UNCERTAINTY OVER EURO 4 PRODUCT SUPPLY
TRAILBLAZER UPDATE
RIDER LICENCING; THE MINISTER SAYS ‘NO CHANGE’
OCTOBER PUTS BRAKES ON MOTORCYCLE DEMAND
Demand in the motorcycle market cooled in October recording a growth of just 0.3%.
A total of 8595 units were registered in October 2016 – just 22 more bikes compared to the same
period in 2015.
There was substantial growth in the naked and scooter categories which both saw increases around
7%. For the first time in many months, bikes in the 51 – 125cc sector recorded a slight decline of -1.7%
Following our vote to leave the EU, motorcycle riders are concerned what affect a long drawn out and
protracted exit negotiation will have on their employment security, inflation and their ability to retain
their current living standard. Also, we have seen the devaluation effect on our currency with a few
manufacturers increasing their retail prices.
There is certainty that in the coming months no brand will be able to sustain the devaluation of
sterling much more. All these are factors which could be influencing buyers to delay replacing their
current motorcycles.
More positively, we are confident that the residual values of 2 - 3 year old motorcycles will remain
strong, and this in turn will enable consumers to change their bikes and to take out new PCPs at
competitive prices.
Overall dealers remain optimistic that demand will hold up near to the current year-to-date growth
figure of 6.7%, and as the final push come to move on the last of the Euro 3 machines prior to the
January deadline.
NMDA DEALER ATTITUDE SURVEY AUTUMN 2016 RESULTS REVEALED
The NMDA is pleased to see that this year’s Autumn 2016 Dealer Attitude Survey received a response
rate of 30%. Over the last few years there has been a view that brands with a low percentage of dealer
responses have not necessarily been representative of the views of that network, and could skew the
results either way. Therefore, in this survey, we have decided to suppress the results of three brands
that had less than 15% of their dealers completing the survey.
Participants in this survey were made up of 83% of Independent Dealers, and 17% privately owned
groups. 60% were single brand dealers whist the remainder of 40% were multi-franchises.
The survey shows that the all dealer average when asked about the overall value of the franchise
improved 0.2 points to 6.8 since the last survey in spring 2016.
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Harley Davidson, KTM and Triumph were recorded as the top 3 franchises.
The least valued franchises by respondents were Piaggio Group, Suzuki and Ducati.
The dealer/manufacturer relationship score average remained the same as in the last survey in spring
2015.
 The partnership dealers have with their manufacturer scored an all dealer average of 3.4
 Ducati dealers were more dissatisfied with the partnership they have with their manufacturer
having reported a score of 2.4 since the last survey (where they scored 3.3) and fall to 9th
position in the ratings chart.
 Harley Davidson remained as the top scoring dealer with a score of 4.6 - down 0.2 points from
last year.
Dealer profit and future profitability remained static in this survey from spring 2015
 When rating the profit return by representing their franchise, the all dealer average remained
at 3.2
 Harley Davidson and Triumph were recorded as the top 2 franchises.
 When asked about the future profitability of their business the all dealer average remained at
3.4
 Again, Harley Davidson and Triumph were recorded as the top 2 franchises.
The average score across all questions was 3.3, unchanged from the last survey. Overall this suggests
that dealers are fairly satisfied with the business relationship they have with their manufacturer.
Dealers are on average most satisfied with the image of the brands they represent and products they
sell. This suggests that dealers are brand patriotic and confident in how the consumer views their
manufacturer.
The business relationship with manufactures is on average most strained in the issue of target
negotiations and the standards required given the returns dealers receive. These issues along with the
relatively low scoring question of manufacture management taking dealers views into account suggest
that dialog could be improved.
To receive a of the NMDA Autumn 2016 Dealer Attitude Survey Results and Report, please contact
[email protected]
WE VOICE OUR CONCERNS OVER RISING LEVEL OF MOTORCYCLE AND SCOOTER THEFT
The NMDA and Motorcycle Industry Association (MCIA) recently attended a meeting Chaired by the
Metropolitan Commissioner of Police Sir Bernard Hogan-Hough, about motorcycle theft in the UK particularly in the capital.
Not only have the theft of powered-two-wheelers increased in the last year but more worrying is they
are more and more being use to perform crimes which in police jargon is called ‘crime enabled bike
theft’. The reason for the criminal preference for two-wheels is munoverability and get-away ability in
congested cities.
The low detection of these crimes is the Police reluctance to deploy stingers and stop-sticks for health
& safety reasons and the Home office recommendation to not pursue escaping motorcycles in built up
areas for fear of creating rider or public accidents or fatalities. All this has convinced the hardened
usually younger criminal that the bike or preferably the scooter is the idea vehicle for crime in
congested city’s.
The statistics show that around 50% of vehicle theft/crime in Greater London is 2-wheeled
motorcycles, 7223 motorcycles that are under 600cc and 1918 bikes are over 600cc indicating that
larger bikes are stolen for their theft value on the illegal total resale, parts or export market.
Regrettable the lower below 600cc motorcycles are stolen for other reasons but mostly to enabled
crime with a fast get-away. Unfortunately only 5% of motorcycles are recovered as whole bikes, others
being stripped for parts or burnt out.
The police pointed out that one of their biggest concerns was the lack of in-built security on
motorcycles plus the low level of additional security measures taken by riders in the city even if they
have bought the security devices.
Suggested reasons from the group to assist in the reversal of these escalating crime trends were as
follows;
1. Traffic/parking officers employed by the local Boroughs could apply stickers to
motorcycles/scooters in London bike parking bays saying 'NOT SECURED, Lock it-or-or lose it'
this would rattle riders to use their pad-locks and security devices.
2. Motorcycle owners need to be advised to use their security locks, two separate locks on
front and back wheel are the biggest deterrent to thieves.
3. Security advice for motorcycles should be part of the CBT training
4. Councils & Boroughs should educate riders how to use their ground anchors and security
bars.
5. Dealers to advise and promote additional security devices and locks at point of sale of new
motorcycles/scooters and also in their service & parts departments.
6. DVLA to re-enforce lock it or lose it advice on flyer sent out with re-licence notices.
7. Facebook page promoting motorcycle security showing how easy it is to steal without
additional visible security locking.
8. Dealers in London offer Police ‘sting scooters’ to entrap thieves.
9. Tracker system fitting encouraged by dealerships (Bike-track)
10. Longer term, better built in security systems on new bikes from manufacturers, long term
measure.
LEGAL UPDATE: EMPLOYEES WORKERS OR INDEPENDENT CONTRACTORS
You may have seen widely reported in the press the recent decision concerning Uber drivers. Whilst it
might be nothing more than a passing news story this case has the potential to significantly affect the
motorcycle industry.
The issues
The case considered the status of contractors and whether there is an entitlement to basic
employment law protections such as the national minimum wage, holiday pay, the right not to be
discriminated against and the right not to have deductions made from their salary.
This is the first in a series of cases to be brought by drivers and couriers over the coming months. On
this occasion the Employment Tribunal has ruled that two drivers who provided services to Uber are
“workers” within the meaning of the Employment Rights Act 1996. This means they will be entitled to
a limited number of employment rights including 5.6 weeks paid annual leave each year, a maximum
48 hour average working week and rest breaks, the National Minimum Wage (and the National Living
Wage) and the protection of the Whistleblowing legislation.
So what does this mean for Motorcycle Dealers?
The Uber case is of interest to any employer who uses “contractors” to perform tasks within their
business, for example drivers, valeters or site/office cleaners. In light of this development it is prudent
to assess the relationship with any of your workers/contractors, and particularly the level of control. It
can be useful to consider what would happen if the person sent an equally qualified replacement to do
the job. If this would be seen as a breach of the agreement between you then this contractor may be a
worker.
Source – Motor Industry Legal Services (MILS Solicitors)
CHINESE DEALER UNCERTAINTY OVER EURO 4 PRODUCT SUPPLY
Many small bike shops that sell a variety of low cost Chinese motorcycles and scooters are getting
concerned that supplies of compliant Euro 4 machines may either by not available or delayed until
later in 2017. This is due to the Chinese manufacturers not seeing Europe and the UK as significant
market place taking sufficient quantities to justify this technical investment over the current Euro 3
product ranges, these sell in vast numbers elsewhere around the globe particularly in the nations of
the developing world.
Some of the more major Chinese importers in the UK have announced they will have Euro 4 product in
the first few months after the change date of January 2017 but while their stocks of certain Euro 3
product is getting low it is imperative that any dealer stock that is not derogated to sell beyond the
end of this year is taxed and registered in December.
The one thing that is predictable is when new Euro 4 Chinese product does arrive it will be
substantially more expensive not only because of the cost of technical upgrading but also due to
Stirling devaluing against the US Doller that is the currency used to import Chinese goods. All this
means the last of the Euro 3 motorcycles and scooters registered at the end of this year will look very
good value.
TRAILBLAZER UPDATE
As you will be aware a dedicated group of motorcycle dealers, training providers and manufactures
have been working tirelessly to develop a Trailblazer Apprentice training standard to link with the
governments new apprentice programme due to start this coming April with the introduction of the
new ½% wages levy deduction.
Demand on the Governments Department of Education is intense as all Industrial sectors are
submitting apprenticeship standards as all business will need these to enable them to secure funding
from the new levy support.
I am pleased to say, with the support of the IMI, we have re-written the motorcycle apprentice
standard after initial rejection as being too similar to the car standard, and we are hoping to re submit
this for approval before the end of this year.
If you would like to view or comment on the new standard, the link to the standard is:
http://www.motorcycleapprenticeship.co.uk/motorcycle-technician-standard
RIDER LICENCING; THE MINISTER SAYS ‘NO CHANGE’
As you know the NMDA have been pursuing rider licencing changes following Brexit, we have written
to the minister twice explaining how disadvantaged motorcycle technician apprentices (16-19 years
old) are not being able to road test bikes bigger than 125cc when their equivalent car apprentice can
test drive at age 17 and HGV truck apprentices can test drive rigid 8 wheel trucks up to 32tonne GVW
at age 18.
Notwithstanding this sensible argument the government are obsessed with rider safety and are not
prepared to accept that younger motorcycle riders are unfairly discriminated against.
I would say ‘if you can trust your apprentice mechanic to repair a large motorcycle safely, why can’t
you trust him to test ride it’?
A copy of the latest letter from the Parliamentary Under Secretary of State for Transport Andrew
Jones MP is attached.