As the UK general election approaches, Kevan Wooden, CEO of LKQ UK & Ireland, has outlined the key requirements of the next government, when it comes to the aftermarket.
With a strong understanding of how political events can impact the industry, through LKQ Euro Car Parts, Wooden has highlighted the progress of the market in recent years, but also notes the challenges ahead where government can help, through regulation and support.
“As we have seen over the last few years, things like block exemption and MOT reform could have severely disrupted the industry if the sector had not come together to keep its political advocacy both loud and proactive,” Wooden commented.
The CEO added that his own views fall broadly into two camps, the first being the rights to repair and connect.
He explained: “The UK’s new block exemption regulations were a huge win for the industry. But the pace at which vehicles continue to evolve means we need to enshrine the principles of open access for the independent aftermarket permanently into British laws.
“We also need political support for a framework in which the aftermarket and OEMs can collaborate to create a supply chain for the repair of electric vehicle batteries. This should help to stem the tide of unnecessary vehicle write-offs and waste that’s damaging the residual value of BEVs.”
Wooden calls for support
The need to support small businesses is another priority for Wooden: “SMEs are the backbone of the independent aftermarket so like many small businesses they are disproportionately affected by business rates, energy costs – where garages and bodyshops especially are big users – and the cost of disposing of waste.
“And the pace of change in the automotive sector means the aftermarket’s SMEs are particularly exposed to the challenges of technological change and a skills crisis.
“To support their need to invest in new equipment, such as to service ADAS vehicles as might be required in future MOT tests, as well as training, they need greater incentives through tax breaks to support the outlay required.
“We also need to look at the Apprenticeship Levy, which now does more harm than good, especially to larger garages. Most alarmingly, since its introduction in 2017 the number of apprentices starting in SMEs has plummeted by 49%.”
Call to action
LKQ UK & Ireland is inviting its partners, customers and experts from across the industry to share their thoughts ahead of preparing a list of key asks to put in front of the new Transport Secretary later this summer, to help the aftermarket meet its full potential in terms of employment, skills, consumer choice, safety and sustainability.
Wooden concluded: “As an industry of some 30,000 businesses, employing 300,000 people across every region of the UK, the aftermarket should be listened to and supported. We intend to make sure whoever triumphs in the general election gets the message.”
