AA call outs on the rise as cull on spare tyres bites

Cars without a spare tyre caused a rise in AA call outs last year as more drivers were forced to rely on the service rather than changing the wheel themselves.

AA executive chairman Bob Mackenzie said the decision by car manufacturers to do away with a spare in the boot was a driving force behind the increased number of callouts, which rose 5% to 3.63 million last year from 3.45 million.

“It’s a weight and space issue and wheels are getting bigger and heavier. It’s part of the image of performance [for new cars],” Mackenzie said, adding that the problem was worse for SUVs which have bigger wheels.

The increase in callouts weighed somewhat on AA’s performance with earnings broadly flat at £403 million, despite a 1.6% rise in trading revenues to £940 million.

The group is spending big on digital developments such as a new app — which now accounts for 22% of the times AA is called out — and cutting down its large debt pile, a hangover from the days when it was owned by private equity groups.

However, more breakdowns also enabled AA to boost subscriptions, with retention rates up to 82% from 81%.

“Increased callouts are more expensive, but as we go out they tend to renew their subscriptions so it increases the level of retention,” Mackenzie said.