Long-time Labour Party supporter and former donor Brian Gilda criticized the recent increase in employer national insurance contributions during last month’s Budget. This rise would cost his Peoples car dealership business a significant £450,000 annually. Mr. Gilda expressed his concerns in an interview with The Herald, highlighting the impact on his business due to reduced sales of Ford cars, partly caused by the US manufacturer’s decision to cease Fiesta production.
Peoples recently ended its 42-year exclusive partnership with Ford and now represents Chinese brands such as Chery’s Omoda and Jaecoo marques, as well as BYD, at five of its six dealerships alongside Ford. Mr. Gilda compared the relationship with Ford to a “marriage” and mentioned the challenges faced in securing quality used cars at competitive prices.
The company reported a 7.6% decrease in turnover and a 32.9% decline in pre-tax profits before preference share dividends in the year ending July 31. Despite these challenges, Peoples remains optimistic about its future plans, including expanding its offerings of battery electric vehicles (BEVs) and internal combustion engine (ICE) vehicles.
Regarding the national insurance hike, Mr. Gilda expressed disappointment with the new Labour Government’s Budget, stating that many small businesses would suffer as a result. He suggested that a higher income tax would have been a better alternative as it would have impacted everyone. As a long-time Labour supporter, Mr. Gilda questioned the alignment of the party’s pre-election promises with the post-election reality, expressing discomfort with the Budget’s outcomes.
When asked about the potential impact on his workforce due to the national insurance increase, Mr. Gilda mentioned plans to navigate through the challenges and emphasized the need for careful pricing strategies. While Peoples employs 356 people, Mr. Gilda expressed uncertainty about the future recruitment plans, indicating a cautious approach.
Despite the difficulties faced by the business, Mr. Gilda highlighted the success of Peoples’ commercial vehicle sales and after-sales services. He acknowledged the shifting dynamics in the automotive industry and emphasized the company’s commitment to adapting to changing market demands.
Looking ahead, Mr. Gilda mentioned the gradual transition from high Ford volumes to more modest sales figures and the eventual focus on commercial vehicles over passenger vehicles. He noted the strong demand for Ford’s Transit Custom, Transit van, Ranger, and Puma models, indicating positive trends in certain segments of the market.
Peoples’ strategic realignment includes offering a mix of Ford vehicles and Chinese brands at different locations, reflecting the company’s efforts to diversify its product offerings. Despite the challenges posed by the national insurance hike and other market factors, Peoples remains focused on meeting the evolving needs of its customers and ensuring long-term sustainability in a competitive industry landscape.
