Thursday, July 27, 2006
Peter Vardy signs up with two major partners
Peter Vardy, the new privately owned dealer group headed-up by Sir Peter Vardy’s son, has announced a number of key business agreements as it prepares for future growth.
The business has signed a deal with ADP, formerly known as Kerridge Automotive Systems, to provide its dealer management system and has also signed a remarketing deal with British Car Auctions.
“We are moving forward very well with our first dealership and now is the time to get the major partners we want to work with in place so we are ready for future growth,” said Vardy.
DATED: 27.07.06
FEED: MT
The business has signed a deal with ADP, formerly known as Kerridge Automotive Systems, to provide its dealer management system and has also signed a remarketing deal with British Car Auctions.
“We are moving forward very well with our first dealership and now is the time to get the major partners we want to work with in place so we are ready for future growth,” said Vardy.
DATED: 27.07.06
FEED: MT
CBI survey shows July sales boost
Despite the nation being glued to the World Cup and the added distraction of fine weather, car retailers reported a jump in sales for July that produced the strongest growth in over two years.
According to the latest CBI Distributive Trades Survey, dealers reported a positive balance of 20 per cent, compared to a negative one of 2 per cent in June.
However, sales remain below average for the time of year and sales are expected to restart their long decline in August.
DATED: 27.07.06
FEED: MT
According to the latest CBI Distributive Trades Survey, dealers reported a positive balance of 20 per cent, compared to a negative one of 2 per cent in June.
However, sales remain below average for the time of year and sales are expected to restart their long decline in August.
DATED: 27.07.06
FEED: MT
New head of sales for Honda
Honda has appointed Bernard Bradley to head up its sales operations.
He will join the brand next month and arrives from BMW where he currently holds a similar position as general manager of sales.
Bradley has previously worked for Volkswagen, Volvo and Vauxhall. He will report to Ewan Ramsay, who heads up the car division at Honda. The appointment follows Philip Crossman’s move to head of network development for Honda.
DATED: 27.07.06
FEED: MT
He will join the brand next month and arrives from BMW where he currently holds a similar position as general manager of sales.
Bradley has previously worked for Volkswagen, Volvo and Vauxhall. He will report to Ewan Ramsay, who heads up the car division at Honda. The appointment follows Philip Crossman’s move to head of network development for Honda.
DATED: 27.07.06
FEED: MT
Used market eases pain of new car sector
The World Cup and England’s early exit did little to dampen spirits in the second quarter of the used car market, according to Manheim’s latest report on used car trends.
Figures showed volumes were up by over 6 per cent, although this was in line with the seasonal trend.
Values remained identical to the first three months of the year, while there was also little movement in vehicle profiles. “From an overall market perspective, the second quarter looks good – stable by all measurements and continuing to produce good results,” the report found.
DATED: 27.07.06
FEED: MT
Figures showed volumes were up by over 6 per cent, although this was in line with the seasonal trend.
Values remained identical to the first three months of the year, while there was also little movement in vehicle profiles. “From an overall market perspective, the second quarter looks good – stable by all measurements and continuing to produce good results,” the report found.
DATED: 27.07.06
FEED: MT
Tuesday, July 25, 2006
MG Rover collapse cost £900m
The collapse of MG Rover has cost public and private enterprises nearly £900m, according to the Commons Public Accounts Committee.
The MP’s investigation found that taxpayers forked out £270m helping out the ailing company in the five years from 2000. Private companies lost £109m in unpaid bills and a pension deficit of £500m may have to be funded by the business-financed Pension Protection Fund.
The committee’s report praised local agencies in the West Midlands for helping sacked workers find alternative employment but said it found “serious gaps” in the way the Department of Trade and Industry handled the crisis.
DATED: 25.07.06
FEED: MT
The MP’s investigation found that taxpayers forked out £270m helping out the ailing company in the five years from 2000. Private companies lost £109m in unpaid bills and a pension deficit of £500m may have to be funded by the business-financed Pension Protection Fund.
The committee’s report praised local agencies in the West Midlands for helping sacked workers find alternative employment but said it found “serious gaps” in the way the Department of Trade and Industry handled the crisis.
DATED: 25.07.06
FEED: MT
New vehicle keeper regulations announced
Tough new rules to govern the release of vehicle keeper information were announced by transport minister Stephen Ladyman yesterday (24 July).
The new measures are designed to protect people from the misuse of their information and provide robust complaint and audit procedures where misuse is alleged.
"Protecting the privacy and confidentiality of individuals is critical, and that is why we are introducing this raft of measures to address the concerns raised regarding the kinds of organisations that receive information,” Ladyman said.
DATED: 25.07.06
FEED: MT
The new measures are designed to protect people from the misuse of their information and provide robust complaint and audit procedures where misuse is alleged.
"Protecting the privacy and confidentiality of individuals is critical, and that is why we are introducing this raft of measures to address the concerns raised regarding the kinds of organisations that receive information,” Ladyman said.
DATED: 25.07.06
FEED: MT
Finance dealers endangered
The future for independent retailers selling finance products is growing increasingly uncertain, according to Miles Roberts, managing director at provider Southern Finance.
His belief that this category of dealers “could become an endangered species” is prompted by “the dark spectre of relentless consolidation” among finance companies at global and domestic levels.
Roberts’ theory is simple – fewer lenders offering less support and a restricted range of products means less choice for retailers and reduced scope to generate what has become a vital source of profits.
He cites the recent sale by General Motors of a controlling interest in its GMAC finance arm and the annexation of formerly UK-owned independents by overseas interests as examples.
“Some of the rationalization within the sector is likely to lead to a greater emphasis on the higher volume franchised end of the market at the expense of quality used car operators,” he says.
“It is about choice for the independent retailer and, ultimately, the car buying customer. Ten years ago there were probably 10 independent players, but now you can count them on one hand.”
He adds: “I anticipate at least one other company will be swallowed up or disappear by the end of this year.”
The process, he says, is being accelerated by a “mad rates war” with colleagues among the big league players, backed by the muscle of major financial institutions, confiding that margin is the key to survival rather than volume.
“If everyone is fighting for the same business the margins will be eroded further and consolidation will continue. Independents simply cannot compete in the business of borrowing money like the major groups and manufacturer captives. It would be like feeding my own will.”
Roberts calls for independents to “enhance personal service and flexibility, embrace technology but maintain human links between lenders and dealers. There are alternatives to monolithic, rigid credit scorecard systems.”
Southern Finance is talking to companies about establishing predominantly PCP schemes aimed at funding cash-for-car, ex-company car refugees. Miles Roberts aims to exploit an internet car-buying trend among former corporate drivers within the programme.
DATED: 25.07.06
FEED: AM
His belief that this category of dealers “could become an endangered species” is prompted by “the dark spectre of relentless consolidation” among finance companies at global and domestic levels.
Roberts’ theory is simple – fewer lenders offering less support and a restricted range of products means less choice for retailers and reduced scope to generate what has become a vital source of profits.
He cites the recent sale by General Motors of a controlling interest in its GMAC finance arm and the annexation of formerly UK-owned independents by overseas interests as examples.
“Some of the rationalization within the sector is likely to lead to a greater emphasis on the higher volume franchised end of the market at the expense of quality used car operators,” he says.
“It is about choice for the independent retailer and, ultimately, the car buying customer. Ten years ago there were probably 10 independent players, but now you can count them on one hand.”
He adds: “I anticipate at least one other company will be swallowed up or disappear by the end of this year.”
The process, he says, is being accelerated by a “mad rates war” with colleagues among the big league players, backed by the muscle of major financial institutions, confiding that margin is the key to survival rather than volume.
“If everyone is fighting for the same business the margins will be eroded further and consolidation will continue. Independents simply cannot compete in the business of borrowing money like the major groups and manufacturer captives. It would be like feeding my own will.”
Roberts calls for independents to “enhance personal service and flexibility, embrace technology but maintain human links between lenders and dealers. There are alternatives to monolithic, rigid credit scorecard systems.”
Southern Finance is talking to companies about establishing predominantly PCP schemes aimed at funding cash-for-car, ex-company car refugees. Miles Roberts aims to exploit an internet car-buying trend among former corporate drivers within the programme.
DATED: 25.07.06
FEED: AM
Trying to reverse the point-of-sale slide
Last February the Finance and Leasing Association’s pragmatic director general Martin Hall warned his organization’s crisis convention on declining point of sale motor F&I business: “If we dither we may get hammered. Finance companies and dealers will sink or swim together.”
Five months on, after a series of meetings with the RMIF and contacts with other “interested bodies” including the SMMT and the DTI’s Retail Motor Strategy Group, Hall says the complex, sometimes delicate process of trying to reverse the POS slide is “grinding forward with a positive momentum”.
Some initiatives are moving more rapidly than others. The most tangible development involves establishing an FLA-funded and managed website to highlight the virtues of POS F&I, while providing impartial, unsponsored information and guidance.
Doug Moody, deputy chairman of the FLA’s motor finance division, explains that the “strategic” website will be open to input from the RMIF plus captive and independent finance providers who, along with dealers, can provide online links to this central point.
“By establishing this website we can grasp the initiative. Consumers and the media can gain rapid access to the unsung benefits of obtaining finance through dealers, the options available and what suits individual cases,” reasons Moody, whose day job is sales and marketing director for DaimlerChrysler Financial Services.
On F&I training, accreditation and best practice fronts, Martin Hall concedes: “It takes time to get all the ducks in a row before definitive moves are made. We are using networks across the automotive, retailer and finance service communities to avoid a fragmented approach.”
Doug Moody says industry-wide accreditation standards could cover personal competence qualifications, and individual outlet and group ‘kitemarks’ or customer charters for F&I services, harnessing expertise gleaned from captive and independent providers alike.
He adds: “We are investigating possible partners and who would endorse this type of programme – the RMIF, SMMT and IMI – or all three on a unified basis. It must connect credible professional standards to consumer faith and peace of mind.”
While Hall hopes dialogue is underway between finance companies and dealers “in the commercial undergrowth”, Moody says: “Virtually all captives are speaking to their retailer customers. We must overcome conflicts of interests between captives and independents, and reach consensus
DATED: 25.07.06
FEED: AM
Five months on, after a series of meetings with the RMIF and contacts with other “interested bodies” including the SMMT and the DTI’s Retail Motor Strategy Group, Hall says the complex, sometimes delicate process of trying to reverse the POS slide is “grinding forward with a positive momentum”.
Some initiatives are moving more rapidly than others. The most tangible development involves establishing an FLA-funded and managed website to highlight the virtues of POS F&I, while providing impartial, unsponsored information and guidance.
Doug Moody, deputy chairman of the FLA’s motor finance division, explains that the “strategic” website will be open to input from the RMIF plus captive and independent finance providers who, along with dealers, can provide online links to this central point.
“By establishing this website we can grasp the initiative. Consumers and the media can gain rapid access to the unsung benefits of obtaining finance through dealers, the options available and what suits individual cases,” reasons Moody, whose day job is sales and marketing director for DaimlerChrysler Financial Services.
On F&I training, accreditation and best practice fronts, Martin Hall concedes: “It takes time to get all the ducks in a row before definitive moves are made. We are using networks across the automotive, retailer and finance service communities to avoid a fragmented approach.”
Doug Moody says industry-wide accreditation standards could cover personal competence qualifications, and individual outlet and group ‘kitemarks’ or customer charters for F&I services, harnessing expertise gleaned from captive and independent providers alike.
He adds: “We are investigating possible partners and who would endorse this type of programme – the RMIF, SMMT and IMI – or all three on a unified basis. It must connect credible professional standards to consumer faith and peace of mind.”
While Hall hopes dialogue is underway between finance companies and dealers “in the commercial undergrowth”, Moody says: “Virtually all captives are speaking to their retailer customers. We must overcome conflicts of interests between captives and independents, and reach consensus
DATED: 25.07.06
FEED: AM
How to advertise finance accurately
Author: John Woolley, managing director, Black Horse Motor Finance
Dealers are under increasing pressure to advertise finance correctly.
In October 2004, changes were made to the way finance providers and dealers were allowed to advertise credit, both in point of sale materials and in dealer press adverts. The strict rules and regulations have presented dealers with a number of challenges.
There is no doubt that these and similar FSA changes have had a wide impact on the financial services industry. It’s rare to open an industry publication or newspaper without reading about prosecutions and fines for breaching the financial regulations and requirements.
Indeed, a recent survey found that 76% of financial advertisements in the UK failed to meet requirements, and in some cases were totally misleading.
Here are some of the important points that dealers need to be aware of when compiling credit adverts (for a full list please see: http://www.oft.gov.uk/business/legal/CCA/advertising.htm).
Adverts should not:
Advertise weekly payments n Be false or misleading n Be anonymous or not name the advertiser
Advertise the amount of repayments/ other charges/ total amount payable without showing all financial items together and with equal prominence
Advertise a full advert without an address
Advertise any of charges/ repayments/ interest rates/ frequency of payments/ incentives/ comparative or non-status indications, without showing the typical APR
Show the typical APR in characters of less than one and one half times the size of any other financial characters
Dealers who turn a blind eye to these points can expect a call from their local TSO.
DATED: 25.07.06
FEED: AM
Dealers are under increasing pressure to advertise finance correctly.
In October 2004, changes were made to the way finance providers and dealers were allowed to advertise credit, both in point of sale materials and in dealer press adverts. The strict rules and regulations have presented dealers with a number of challenges.
There is no doubt that these and similar FSA changes have had a wide impact on the financial services industry. It’s rare to open an industry publication or newspaper without reading about prosecutions and fines for breaching the financial regulations and requirements.
Indeed, a recent survey found that 76% of financial advertisements in the UK failed to meet requirements, and in some cases were totally misleading.
Here are some of the important points that dealers need to be aware of when compiling credit adverts (for a full list please see: http://www.oft.gov.uk/business/legal/CCA/advertising.htm).
Adverts should not:
Advertise weekly payments n Be false or misleading n Be anonymous or not name the advertiser
Advertise the amount of repayments/ other charges/ total amount payable without showing all financial items together and with equal prominence
Advertise a full advert without an address
Advertise any of charges/ repayments/ interest rates/ frequency of payments/ incentives/ comparative or non-status indications, without showing the typical APR
Show the typical APR in characters of less than one and one half times the size of any other financial characters
Dealers who turn a blind eye to these points can expect a call from their local TSO.
DATED: 25.07.06
FEED: AM
Monday, July 24, 2006
CBI boss slams Peugeot protest
The trade unions are using “stone age” economics by asking customers to boycott Peugeot cars, the head of the Confederation of British Industry has claimed.
Richard Lambert, the CBI's new director general, made the comments following a protest by union members outside the British Motor Show in London.
Lambert said the idea that goods sold in the UK should be built in the UK was "stone age economics".
DATED: 24.07.06
FEED: MT
Richard Lambert, the CBI's new director general, made the comments following a protest by union members outside the British Motor Show in London.
Lambert said the idea that goods sold in the UK should be built in the UK was "stone age economics".
DATED: 24.07.06
FEED: MT
UK car production dips in June
Car production in the UK dipped by nearly 6 per cent in the first half of 2006 compared to last year.
According to the latest SMMT figures, 905,639 vehicles were made in the year to June.
Figures for the month totalled 156,370, representing a fall of 3.8 per cent. Export production also declined over 4 per cent during the month, but remained flat over the year to date.
DATED: 24.07.06
FEED: MT
According to the latest SMMT figures, 905,639 vehicles were made in the year to June.
Figures for the month totalled 156,370, representing a fall of 3.8 per cent. Export production also declined over 4 per cent during the month, but remained flat over the year to date.
DATED: 24.07.06
FEED: MT
Lex adopts new branding after acquisition
Lex Vehicle Leasing has revamped its name and logo following its change of ownership from Aviva to banking group HBOS.
The brand has relaunched itself as simply Lex, with the business now organised around a central hub under managing director Jon Walden.
He said: “The Lex Group has an excellent new owner in the shape of HBOS and there are exciting times ahead for the new-look company.”
DATED: 24.07.06
FEED: MT
The brand has relaunched itself as simply Lex, with the business now organised around a central hub under managing director Jon Walden.
He said: “The Lex Group has an excellent new owner in the shape of HBOS and there are exciting times ahead for the new-look company.”
DATED: 24.07.06
FEED: MT
Auto Trader hits back at Ebay Motors
Auto Trader has hit back against Ebay Motors after the internet auction vendor upped the ante in the battle for a greater share of the UK's online classified market.
In what could be a further threat to print media, Ebay Motors has announced its intention to include classified ads on its site, putting it into direct competition with Auto Trader.
Matt Thompson, marketing director of Trader Media Group, which publishes Auto Trader, said: “We are flattered that Ebay is following our business model as their auction model seems to have proved unsuccessful for the UK car market.”
DATED: 24.07.06
FEED: MT
In what could be a further threat to print media, Ebay Motors has announced its intention to include classified ads on its site, putting it into direct competition with Auto Trader.
Matt Thompson, marketing director of Trader Media Group, which publishes Auto Trader, said: “We are flattered that Ebay is following our business model as their auction model seems to have proved unsuccessful for the UK car market.”
DATED: 24.07.06
FEED: MT
Ford US posts losses but Europe is back in the black
Ford has posted an unexpected second quarter loss as sales of SUV models slumped due to high US fuel prices.
The carmaker also suffered charges for employee buyouts.
Net losses for the quarter reached $123m (£66m) compared to a profit of $946m for the same period last year.
Ford of Europe is on course to make a profit. Year-to-date figures show the division is in the black to the tune of $196m.
DATED: 24.07.06
FEED: MT
The carmaker also suffered charges for employee buyouts.
Net losses for the quarter reached $123m (£66m) compared to a profit of $946m for the same period last year.
Ford of Europe is on course to make a profit. Year-to-date figures show the division is in the black to the tune of $196m.
DATED: 24.07.06
FEED: MT
