F&I Management & Training

CPI Inflation has risen sharply since the May Report, reaching 2.5% in June 2006.

That partly reflected the pass through of previously announced increases in domestic energy prices into household bills.

Higher University tuition fees, and the continuing pass through of higher energy prices are likely to push inflation further above the published 2% target for a while yet.

DATED: 09.08.06

FEED: BoE

New car prices in the UK fell by 2.7 per cent in real terms in the year to the end of May according to the European Commission’s Car Price Differentials report.

The research suggested EU citizens could save money by buying cars in countries where the pre-tax price is low and then taking the purchase back to their country of residence where they are liable to pay only local tax.

Pre-tax prices were lowest in Denmark and Hungary, the research found.

DATED: 09.08.06

FEED: MT

Nationwide road pricing schemes could be introduced under proposals being drawn up by Douglas Alexander, the Transport Secretary.

The plans to combat rising traffic congestion are one of several bills expected to be included in the next Queen’s speech.

The introduction of such a scheme could be up to 10 years away but Alexander is understood to be keen to launch pilots in some of the country’s largest metropolitan areas much sooner.

DATED: 09.08.06

FEED: MT

Pendragon is still on the acquisition trail and could be looking to make 50 small purchases in the UK, according to press reports.

The reports also suggest that Pendragon has not ruled out another move on Lookers, although this is thought to be unlikely until it has paid off more of the £500m it borrowed to acquire Reg Vardy in February.

Yesterday the group announced strong first-half results which saw profits rising from £35.3m to £50.8m. Separately the Office of Fair Trading confirmed the group will not be referred to the Competition Commission following its acquisition of Reg Vardy.

However, the OFT said it was still concerned about the reduction of competition for new car servicing in four geographical areas and Pendragon has offered to divest a number of sites as a result.

DATED: 09.08.06

FEED: MT

Residual values of budget brands are beginning to threaten established volume brands in many of the core market segments.

According to EurotaxGlass's market intelligence service, manufacturers such as Skoda, Hyundai and Kia are beginning to make a real impact in the UK market place with their expanding product ranges and improved quality finding increasing demand on the used market.

"Our analysis shows that the volume players are not having it all their own way in terms of residual values," said Alan Cole. Budget diesel variants also appear to be retaining better residuals values than that those of the volume players.

DATED: 0708.06

FEED: MT

Inchcape, the global automotive retailer, has reported record profits in the UK for the first six months of the year.

Its UK retail business grew trading profits by 49.1 per cent, achieving a record trading margin of 2.8 per cent.

Year-on-year sales rose 5.2 per cent to £783m - trading profit increased to £23.2m from £15m a year earlier. Australia, Greece and Belgium also reported record results as overall sales for the company rose 8.1 per cent year-on-year to £2.44bn.

DATED: 07.08.06

FED: MT

As part of plans to reduce its debts, HR Owen has shed three of its Audi dealerships.

A management buy-out team headed by Darren Guiver, under the company name Spire Automotive, has bought the three dealerships in Finchley Road, Hatfield and Whetstone.

As at 31 December 2005, the three sites had gross assets of £10.2m and generated a pre-tax profit of £500,000. The total consideration for the business payable in cash is £4.7m, of which £2.0m is goodwill. As part of the deal, all of the employees will be transferred to Spire Automotive.

DATED: 07.08.06

FEED: MT

Bank of England Raises Bank Rate by 0.25 Percentage Points to 4.75%


DATED: 03.08.06

FEED: Bank of England