F&I Management & Training

PORSCHE AG has denied trader speculation that it plans to team up with a financial investor to make a full takeover bid for VW.

Earlier this month, Porsche announced that it had increased its stake in VW to 27.4%. It said it intended to take it to 29.9% just below the 30% level that would force it to make a full takeover offer.

DATED: 30.11.06

FEED: AW

The case of theft and forgery against James Munroe, the dismissed director of corporate affairs at Automotive Skills, has been adjourned.

It is the second time the case has been adjourned. It will now be heard on December 21.

The defence team claimed it had not had sufficient time to prepare its defence.
Mr Munroe originally faced four charges but these have now been increased to 22.

DATED: 30.11.06

FEED: AW

Formula One TV commentator, Martin Brundle, has left the industry.

The Brundle family's last remaining retail outlet in Kings Lynn, Norfolk, a Volkswagen franchise, has been bought by Martin Bennett, a former franchise manager with the car-maker.

It brings to an end the Brundle family's 40-year involvement in car retailing.

DATED: 30.11.06

FEED: AW

HPI has been named the preferred provenance check supplier for more than 500 General Motors’ dealers across the UK.

The company beat off competition to become the preferred supplier for the Vauxhall Network Q, Saab and Chevrolet outlets within the GM network of approved dealerships.

Daniel Burgess, director of automotive at HPI, said: This is another significant contract win that combines our respective strengths to the benefit of dealers across the UK.”

DATED: 29.11.06

FEED: MT

Marshall Motor Group, ranked 21 in the Motor Trader Top 200, is relocating its DaimlerChrysler outlet in Peterborough to new premises in the town.

The dealership is moving to a new showroom on Tyrrell Park, which features additional showroom space.

In addition to its new and used vehicle operations, the new site also boasts a seven bay workshop, valeting services as well as bodywork and repair facilities.

DATED: 29.11.06

FEED: MT

Former MG Rover bosses are reportedly set for a massive tax windfall that could net the Phoenix Four around £16m.

The money could be won back as overpaid VAT following a change in the rules covering cars purchased by car financing and leasing companies at the end of their agreements.

In a further blow to the former MG Rover workers, the Department of Trade & Industry has admitted that its inquiry into the MG Rover collapse is likely to drag on into next year. Reports indicate that it has cost taxpayers almost £7m.

DATED: 29.11.06

FEED: MT

British dealers are under increasing pressure in today’s fiercely competitive and saturated automotive market.

According to the latest car dealership report from Ernst & Young, falling new car sales, increased power in favour of manufacturers and sliding margins are all adversely affecting motor retailers.

David Duggins, corporate restructuring partner at Ernst & Young, said: “UK dealers that survive these pressures will be characterised by high levels of management capability, with robust financial information and control systems, and the ability to capitalise on economies of scale.”

DATED: 29.11.06

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The UK’s largest dealer group, Pendragon has proposed the sale and leaseback of 81 of its properties to PPH1, a joint venture company owned by Pendragon Group and NWPIL – a subsidiary of the Royal Bank of Scotland.

Consideration for the sale will be £257.8m, realising net cash proceeds of £238.9m. Each property will be leased back to the group for 25 years for an initial aggregate yearly rent of £16.3m.

Pendragon chief executive Trevor Finn said the transaction would reduce gearing following the group’s £500m acquisition of Reg Vardy.

DATED: 29.11.06

FEED: MT

Struggling US carmaker Ford is mortgaging the majority of its North American operations in a bid to raise loans of $18bn (£9.3bn).

Ford announced that it was offering its car stock, subsidiaries and manufacturing equipment as a guarantee in return for financing to help keep the company afloat.

Ford is expected to bring in $15bn of secured loans to replace an unsecured borrowing of $6.3bn.

DATED: 29.11.06

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The warranty market has seen a new player enter the sector with the arrival of AA Warranty.

This follows a deal between Motorway Direct and AA Insurance to provide a range of motor warranty and gap insurance products for dealerships and individuals.

Simon Tennyson, managing director of Motorway Direct , claimed the launch of AA Warranty would help improve the reputation of the car retailing market. “This is the start of a business relationship that will improve confidence in both car vendors and buyers,” he said.

DATED: 29.11.06

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THE last Almera to be produced at Nissan's Sunderland factory was completed last week.

The Almera was launched in January 2000 as a replacement for the Sunny, and 800 new jobs were created at Sunderland to cope with the extra work.

The Sunderland plant produced 639,000 Almera models. In the last six years it has been exported to 45 countries. Nissan is now concentrating on other models such as the Note mini-MPV and the forthcoming Qashqai.

DATED: 29.11.06

FEED: MT

Dealers may be wasting valuable marketing budget spend contacting customers during the festive period, according to new research.

A You Gov survey on behalf of communications specialists, Broadsystem, revealed that only 7 per cent of automotive customers are receptive to any kind of communication relating to car deals over Christmas.

The survey also confirmed the growing rise in internet usage to source products and the importance of customer service during this period.

DATED: 29.11.06

FEED: MT

Dealers are being urged to be more vigilant with their accounting practices as HM Revenue & Customs seeks to tighten its checking procedures.

According to specialist motor trade accountancy firm Trevor Jones, a recent HMRC conference saw Customs confirm they now have specialist motor trade teams established around the country to carryn out dealer assessments.

Trevor Jones warned that dealers needed to ensure they are prepared for this new “targeted approach” from Customs.

DATED: 29.11.06

FEED: MT

Speculation is mounting that the AA could soon be sold or floated in a £3bn deal.

The motoring organisation is reported to have appointed accountancy firm PricewaterhouseCoopers to compile a report on its finances for potential buyers and investors.

The AA is owned by investment firms CVC and Permira, which acquired the business in September 2004 for £1.75bn.

DATED: 29.11.06

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THERE WERE few car retailers represented at this month's Finance & Leasing Association's Motor Finance Convention at the National Motorcycle Museum, Birmingham. It was a point noted by the keynote speaker, Quentin Willson, who acknowledged that a 30-year decline in forecourt finance could not be turned round in a year.

In truth, the lack of retailers mirrored the FLA's own statistics. - 30% don't offer point-of-sale finance for new cars and 43% don't have it on the menu for used cars. It is complicated, expensive and over-regulated is often the reason trumpeted.

The FLA and, indeed, individual members of the Association are stepping-up their activities to reverse the decline in POS finance by providing training and advice. At the convention, the Association launched a consumer website designed to give customers the knowledge they need to make an informed choice about how to finance their car. The aim is to counter stories of forecourt finance being a bad deal by impartially explaining the pros and cons of all forms of financing a car.

Despite finance sometimes making the difference between a dealer being viable or not viable, Louise Wallis from the RMIF probably brought the subject down to basics - "margins need to be improved for the dealers in order to reverse the decline," she said.

Retailers should take a tip from car-makers. Sell the money, not the metal.

DATED: 29.11.06

FEED: AW

Caffyns, ranked 50 in the Motor Trader Top 200, reported a dip in pre-tax profits from £922,000 to £829,000 for the half-year ended 30 September.

Underlying pre-tax profit, however, was up from £637,000 to £643,000 as was turnover. Chairman Brian Carte said the group’s physical restructuring of its properties affected by MG Rover was now complete.

He said: “We are still some way from delivering the full potential of our new franchises but can now concentrate on doing so without distraction, which should lead to an improved trading performance for the year."

DATED: 29.11.06

FEED: MT

Chancellor Gordon Brown is set to target owners of high emission cars with a further tax hike, according to the Financial Times.

In his pre-budget report Brown is expected to announce increases to the top rate of vehicle excise duty for the most polluting new cars, such as the much maligned 4x4s. Brown is reported to back indirect taxation as a means to persuade motorists to opt for greener cars.

DATED: 29.11.06

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Automotive Consulting is advising car dealers to “make people, not software, their priority” when making business decisions.

The consultancy accepts that software programmes can help administration, but insists “faces sell cars, not computer screens”.

DATED: 29.11.06

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Fleet e-commerce specialist Epyx has won the best use of technology in business category in the Orange National Business awards.

The panel of judges chose Epyx because it had “effectively used business technology to create a significant and exploitable competitive or operational advantage.

”Greg Connell, managing director, said: “In a relatively short space of time we have created an e-commerce standard that is used by a growing number of businesses in the motor industry.”

DATED: 29.11.06

FEED: MT