Customer retention changing the customer perception Paul Everitt

Customer retention; changing the customer perception Paul Everitt, Chief Executive, SMMT 6 April 2011 SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd

New car registrations Market slowing, after scrappage scheme • • Scrappage scheme helped stabilise market, albeit at a lower level. Registrations set to end 2011 at 1. 93 million units. New car registrations, 12 month moving annual total 2007 to 2011 (Source SMMT) New car registrations, Mns, 12 MMAT 2, 50 Actual Forecast Apr '09 Forecast Jan '10 Forecast Jan '11 2, 25 2, 00 1, 75 1, 50 Jan-07 Jan-08 Jan-09 SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED Jan-10 Jan-11 PAGE 2

New car registrations Impact of scrappage scheme • • Scrappage in place May 2009 to March 2010 (with some overhang). Represented almost 15% total sales over that period. New car registrations, 2009 to 2011, with Scrappage indentified (Source SMMT) 500 000 2008 SIS 2009 2010 2011 450 000 400 000 350 000 300 000 250 000 200 000 150 000 100 000 50 000 0 J F M A M J SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED J A S O N D PAGE 3

New car registrations Private and fleet split • • Scrappage scheme supported private market. Fleet volumes stable and supporting overall market. New car registrations, 12 month moving annual total 2007 to 2011 (Source SMMT) ‘ 000 s 2007 2008 2009 2010 2011 F Total 2, 404 2, 132 1, 995 2, 031 1, 930 % change 2. 5% -11. 3% -6. 4% 1. 8% -5. 0% Private 1, 046 892 1, 014 958 862 -14. 7% 13. 7% -5. 6% -10. 0% 1, 239 980 1, 072 1, 068 -8. 7% -20. 9% 9. 4% -0. 5% % change Fleet/Business % change 1, 358 SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 4

New commercial vehicle registrations Market recovering after recession • • CV market up 15. 6% in 2010. Further 38. 7% rise at start of 2011 LCV equal 85% all CVs. 19. 6% growth in 2010 and to rise 7. 8% in 2011. New CV registrations, 12 month moving annual total 2007 to 2011 (Source SMMT) Total LCVs New CV registrations, '000 s 425 400 375 350 325 300 275 250 225 200 175 07 08 09 SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED 10 11 PAGE 5

Building aftersales business Challenging perceptions to retain customers • Greater emphasis on aftersales activity. • Importance of the franchised network to the UK motor industry. • Knowing the difference – understanding the service offering. • Building confidence by demonstrating credibility and celebrating success. • Motor Codes - A public commitment to fair and honest customer service. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 6

Motor industry code of practice for service and repair Key statistics Number of subscribers Franchised dealers Independent garages - 5, 500 1, 000 Website traffic (unique users) 2010 total Q 1 2011 - 317, 647 123, 306 (47. 1% increase on 2010) Garage finder searches 2010 Q 1 2011 - 110, 154 32, 777 (33. 8% increase on 2010) Customer survey returns 2010 Q 1 2011 - 8, 396 (Satisfaction level = 91%) 5, 069 (Satisfaction level = 93%) SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 7

Motor industry code of practice for service and repair Consumer-focussed Motor Codes website. • Garage finder helping consumers to make the right first step. • Garage profile setting out the key service offerings. • Customer generated feedback rating, unique to each garage. • Unedited customer feedback from real-life user experiences. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 8

Motor industry code of practice for service and repair Reassurance through transparent review processes SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 9

Aftersales and the franchised network Customer retention; Changing the customer perception • • • Industry needs to explain its value proposition to motorists. Industry needs to focus on demonstrating its commitment to quality of service. Industry needs to encourage motorists to differentiate between those that can and do and those can’t and wont. Motor Codes provides a transparent process for gaining customer feedback. Motor Codes provides motorists with the advice, help and guidance most are looking for. SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 10