The MVRA is to become part of Capita Insurance Services, which already provides large scale, outsourced services to the insurance industry, including fraud investigation services to motor insurers. It has had a relationship with Capita for a number of years, providing a repair network service for some of its clients. Capita said it plans to use the acquisition to grow its presence in the motoring and services sector and create a business that can support the motor insurance industry, which is faced with increased regulations, new materials and an increasingly competitive market. Mike Monaghan, MVRA CEO, believed the organisation had reached a point where it could only achieve organic growth and would find expansion difficult. “Our ability to grow was hampered in the face of competition from large corporate players with better access to corporate funding and resources than we could ever achieve. The timing was perfect for me to consider the long-term growth opportunity and financial stability for the MVRA,” he said. He added that the MVRA's size and resources were an obstacle to business expansion. “The truth of the matter is that major blue chip plc companies like to deal with major blue chip plc companies. This is because of the due-diligence, the financial checks and all else related to it,” he said. MVRA service enhancements He said plans were underway for the future growth of member services and benefits. “The takeover has made the company a lot bigger, security a lot stronger, and has provided greater benefits to members than we could ever provide.” Monaghan insisted that on a day-to-day basis the MVRA would now be more aggressive and capable of delivering greater accident repair work to its membership. Initial plans involve an enhanced speed of service and a 24-hour call centre. He said that mechanical repair members will receive more fleet management business with a greater volume of crash repair and routine maintenance repair work. “We will also add much more depth for members, such as financial services, health and safety services. The impact for members will begin to happen very quickly – probably within the next two to three months,” he said. Standards The MVRA was one of the principal players in the PAS 125 BSI bodyshop standards kitemark initiative, and was involved in the theory group which developed the standard. Launched in January, only 200 of the estimated 5,000 bodyshops in the UK have applied for the PAS 125 kitemark. While costs of registration can be a substantial burden for many bodyshops, Monaghan emphasised the importance of standards to independents. “I don't think I am overestimating when I say that this is the last chance the independent repairer has to protect and secure his future – I absolutely believe that.” He pointed out that the whole of the insurance industry had to recognise that wherever their policy holder's vehicles are repaired – at a dealer or an independent – repair centres must meet known standards. He encouraged independent bodyshops to get PAS 125 accreditation. “Cars in the UK market are repaired predominantly by the independent sector. Independents should be prepared to have their operation inspected by a completely impartial body,” he said. He agreed with claims by BSI Product Services global managing director Alastair Trivett that standards could save lives. “I think that's a genuine statement because if you drive a high technology vehicle – the latest generation vehicle – and it is repaired using inferior methods and techniques by unskilled people, there is a chance that if involved in an accident, that vehicle will cause fatalities,” he said. “Whereas if it was repaired correctly and safely with the right materials and trained technicians it should perform better and thereby protect its occupants.” Ian Harper, general manager for the BSI Kitemark scheme, said that it could allow bodyshops to increase hourly rates; Monaghan agreed: “I think the modern consumer driving modern motor vehicles would appreciate that it could cost a little more but would be safe in the knowledge that that vehicle was being repaired to the right standards with no chance of an unsafe repair.” Regarding friction that is often cited between independents, manufacturers and dealers, Monaghan insisted that a lot of this was more myth than reality. “This is because a considerable number of manufacturers, through their franchised dealers, have manufacturer-approved independent repair centres. It's a commercial relationship”. The relationship's basis is that the independent garage agrees to meet manufacturer standards and levels of investment where required. He pointed out that for a lot of franchised dealers making the necessary investment in body repair to exclusively repair its own brand of vehicle was commercially unviable. “Ultimately the retention of the customer will come down to one thing – the service provided. If the customer gets the car back right, does not lose anything in the value and the integrity of the repair is good, then the manufacturer has protected its brand, irrespective of who repairs it.” MoTs The MVRA has been vocal in its opposition to the proposed changes to the MOT system, which could result in tests required every two years, and not annually. The Association has met with MPs as well as submitting discussion documents to the government. A survey earlier this year by the MVRA found that 73 per cent of its members believed the proposed change would increase the amount of dangerous vehicles on the road, 45 per cent of respondents expressed concern about redundancies and 36 per cent were worried about reduction of turnover. Monaghan called the proposals “ill conceived” and “fundamentally flawed.” He suggested they would have, “catastrophic consequences for the garage trade and the consumer,” and would impact on road safety, environmental issues and costs. He hinted that the plans were inspired by Prime Minister in-waiting Gordon Brown as a sop to highly taxed motorists. “To a degree this has to do with politics as the motorist has already been taxed on emissions, road tax, fuel and insurance.” But he insisted the motorist would not save money as a two year gap in MoTs would likely result in a high cost of repair to bring a vehicle back to a safe condition. “Garages and bodyshops will have to raise their game and invest heavily in training to repair using today's technology. There is a real danger involved in leaving servicing and repairs of modern vehicles to an average garage.”