Parts and Conference Conference

Over the last few months we have seen an unprecedented consolidation in the UK classic vehicle parts market.  Motaclan has acquired Anglo-Parts and American investment company Radial Equity Partners now controls Moss Europe, Rimmer Bros & SNG Barrett Group. It is an open secret that more acquisitions and consolidation are on the cards for the new year. 

We have recently spoken to clients and friends in the investment sector. The likely plan for such an investment is: a reduction of combined costs, restructure purchasing, margins and terms with suppliers, before taking the company to a public listing after three years. At this point new shareholders would look to reduce costs and increase margins once again.

The outcome is that, within the first 3 months of 2025 a small number of investment groups will control over £100M in turnover through their retail outlets for classic car parts. They will, therefore, be in a very strong position to dictate terms and what products they take to market.

Which begs the question: As long term, invested businesses in the UK classic car market, can we really afford to let them have everything their own way? After all, they are here for a quick return on investment not for the future of our businesses or the market we all support.

As you may know we are directors of ‘Classic Collective’ based in Bicester. The business comprises 9000 sq ft of workshop and trim shop and 3000 sq ft of retail, engagement and social event space. 

We work on a wide range of vehicles predominantly around maintenance, service and upgrades. It is the latter in which we see the most growth. The new audience of classic vehicle owners and enthusiasts are looking to make their vehicles as reliable, safe and comfortable as possible. Above all they want them reliable and usable under current road conditions. They also want someone to advise them and fit the products. They are not doing it themselves.

We aim to work with the very best of UK innovation and manufacture, creating direct working relationships, supporting marketing, the end user with choice and fitment as well as the factory with developmental input. 

The overall goal has to be to increase our ability to sell ‘directly’ to the end user and fit our network’s products to their cars.This will help both us and our network to:

• Increase margins
• Improve cash flow
• Offer advice and a fitting service those ‘supermarkets’ cannot match
• Be more independent of short term investor led businesses
• Improve and develop new products
• Allow you to concentrate on your manufacturing and supply chain

To do this we want to create a network of non-competing ‘upgrade suppliers’. With the aim of pooling manufacturing, R&D resources and marketing as well as putting business owners directly in touch with each other to share market insight, problems and solutions.

This is not another HCVA or FBHVC, it will be a group of business owners whose goal is to produce quality, lasting products, have a dedicated fitting centre, sell the products to consumers outside Radial and Motorclan and profit from our combined efforts.

The market is changing rapidly. We need to come together, be strong and adapt to this brave new world. Therefore we would like to invite you to a roundtable discussion on how we could implement this quickly at our HQ in Bicester on Wednesday 22nd January.