Thursday, January 17, 2008
Clare James smashes targets
North-west Clare James Automotive has exceeded budgets for turnover and profits in the year to June 30, 2007.
Return on sales has risen year-on-year from 1.77% to 2.05%.
The company puts its success down to a combination of growing its existing businesses – Volkswagen outlets in Warrington and Liverpool – and the acquisition of Lightcliffe Motors in March.
Lightcliffe added a third VW showroom to the group and a Skoda authorised repair business in Halifax.
Turnover for continuing operations rose from £56.746m to £74.293m, while the Lightcliffe business added just over £5m, taking overall turnover to £79.46m
DATED: 17.01.08
FEED: AM
Return on sales has risen year-on-year from 1.77% to 2.05%.
The company puts its success down to a combination of growing its existing businesses – Volkswagen outlets in Warrington and Liverpool – and the acquisition of Lightcliffe Motors in March.
Lightcliffe added a third VW showroom to the group and a Skoda authorised repair business in Halifax.
Turnover for continuing operations rose from £56.746m to £74.293m, while the Lightcliffe business added just over £5m, taking overall turnover to £79.46m
DATED: 17.01.08
FEED: AM
Pendragon tight-lipped over BMW review
Pendragon is believed to be losing all or some of its 11 Stratstone BMW/Mini dealerships. A BMW dealer said: “The manufacturer is carrying out a review throughout the network, and we hear that Trevor Finn is out of favour. It looks as though Pendragon’s boss has more bad news to contend with.”
A BMW UK spokeswoman confirms the manufacturer is conducting an appraisal of all 151 BMW/Mini retail points. “Until that is completed, we are saying nothing more,” she added.
Following the introduction of the 2002 Block Exemption regulation, BMW chose to award its UK dealers five-year contracts. The company said that was fair, given the investment required.
In October, BMW will award new contracts.
Their time length has not been revealed, but it might opt for more traditional two-year rolling contracts.
DATED: 17.01.08
FEED: AM
A BMW UK spokeswoman confirms the manufacturer is conducting an appraisal of all 151 BMW/Mini retail points. “Until that is completed, we are saying nothing more,” she added.
Following the introduction of the 2002 Block Exemption regulation, BMW chose to award its UK dealers five-year contracts. The company said that was fair, given the investment required.
In October, BMW will award new contracts.
Their time length has not been revealed, but it might opt for more traditional two-year rolling contracts.
DATED: 17.01.08
FEED: AM
Caffyns has tough second half of 2007
Caffyns expects the success of its performance for 2007 to come down to the final two months of the financial year after a slowdown in retail demand.
The group said the performance in the second half of the year was "considerably weaker than expected," with December and January particularly poor months.
In its latest trading statement, Caffyns said: “The economic factors influencing our sales include a slow down in the housing market and an adverse environment for consumer credit. Retail demand, which is the key driver of our business, has therefore been weakened and December was a particularly disappointing month. This downward trend has continued in January.
“We anticipate that margins will remain under pressure for some time to come and we now expect that our trading performance will be considerably weaker in the second half of the year than in the first half.”
The group is currently examining a number of initiatives to improve its performance over the next two months.
Caffyns reported its turnover for the first half of 2007 in November which was £94.991 million, up from £85.484 million year-on-year, but profit before tax at 0.8% compared with 0.7%.
DATED: 17.01.08
FEED: AM
The group said the performance in the second half of the year was "considerably weaker than expected," with December and January particularly poor months.
In its latest trading statement, Caffyns said: “The economic factors influencing our sales include a slow down in the housing market and an adverse environment for consumer credit. Retail demand, which is the key driver of our business, has therefore been weakened and December was a particularly disappointing month. This downward trend has continued in January.
“We anticipate that margins will remain under pressure for some time to come and we now expect that our trading performance will be considerably weaker in the second half of the year than in the first half.”
The group is currently examining a number of initiatives to improve its performance over the next two months.
Caffyns reported its turnover for the first half of 2007 in November which was £94.991 million, up from £85.484 million year-on-year, but profit before tax at 0.8% compared with 0.7%.
DATED: 17.01.08
FEED: AM
Wednesday, January 16, 2008
Young quits after LDV sales slump
Steve Young, who resigned just before Christmas 18 months after being appointed chief executive of LDV, has told suppliers it was “for personal reasons”. He is “pursuing other opportunities”. Young is reported as saying: “Because of some personal, family reasons, it suits me to leave LDV now. Other factors aside, I would have stayed longer.”
Young, who could not be contacted, quit soon after the Birmingham vanmaker cut production to three days a week in December. It blamed a drop in orders. His departure was a surprise.
A former Ford executive, Young was part of a new executive team recruited by Russian commercial vehicle maker Gaz in July 2006. Gaz acquired LDV from Sun, a US private equity group.
Some industry watchers believe Young’s decision is linked to a boardroom reshuffle.
In a statement, Gaz said Young’s replacement as a director of the company was Eugeny Vereschagin, chief financial officer of Gaz power train division. Martin Leach, executive chairman of LDV, and a former Ford executive, is acting chief executive. Leach said LDV has been through “enormous change” over the past 18 months, launching new products and making improvements.
DATED: 16.01.08
FEED: AM
Young, who could not be contacted, quit soon after the Birmingham vanmaker cut production to three days a week in December. It blamed a drop in orders. His departure was a surprise.
A former Ford executive, Young was part of a new executive team recruited by Russian commercial vehicle maker Gaz in July 2006. Gaz acquired LDV from Sun, a US private equity group.
Some industry watchers believe Young’s decision is linked to a boardroom reshuffle.
In a statement, Gaz said Young’s replacement as a director of the company was Eugeny Vereschagin, chief financial officer of Gaz power train division. Martin Leach, executive chairman of LDV, and a former Ford executive, is acting chief executive. Leach said LDV has been through “enormous change” over the past 18 months, launching new products and making improvements.
DATED: 16.01.08
FEED: AM
Labels: Delayed Drafts
Analysts downgrade Lookers forecast
Analysts have marked down Lookers profit forecasts for 2007 after the group released its trading statement this morning.
Jose Marco, Numis Securities investment analyst, had previously expected Lookers to post a pre-tax profit of £30 million but reduced his expectations to £24.5m.
His forecast puts Lookers almost £2m down on its 2006 pre-tax profits of £26.4m.
David Dyson, Lookers finance director, told AM: "The second half of the year was tougher than we expected. We will be increasing our dividend and we’re happy with the figures we’ve produced."
While the profit expectations have been reduced, Marco expects Lookers to increase its earnings per share from 7.16p in the first half of 2007 to 9.16p
DATED: 16.01.08
FEED: AM
Jose Marco, Numis Securities investment analyst, had previously expected Lookers to post a pre-tax profit of £30 million but reduced his expectations to £24.5m.
His forecast puts Lookers almost £2m down on its 2006 pre-tax profits of £26.4m.
David Dyson, Lookers finance director, told AM: "The second half of the year was tougher than we expected. We will be increasing our dividend and we’re happy with the figures we’ve produced."
While the profit expectations have been reduced, Marco expects Lookers to increase its earnings per share from 7.16p in the first half of 2007 to 9.16p
DATED: 16.01.08
FEED: AM
Chinese manufacturer targets European launch
Changfeng Motors is looking to follow SAIC into Europe and set up a semi-knock down (SKD) production facility. Li Jianxian, Changfeng Motors chairman, wouldn’t give any details, but confirmed that Changfeng was now looking at launching in Europe as well as North America, perhaps as early as late 2009. Changfeng is looking for a partner to assemble the cars in Europe.
At the Detroit Motor Show, two new Changfeng models were unveiled – a new SUV called the Liebao CS7 and a compact MPV called Kylin, styled by Italy’s Pininfarina. Li said the company wanted to become a global player. “Changfeng must step out of our comfort zone into global competition,” he said. “It is the only way to establish ourselves as a truly global player.”
Both the CS7 and the larger Liebao CS6, shown last year, are now on sale in China, and Li said the company planned to launch two new models every year.
DATED: 16.01.08
FEED: AM
At the Detroit Motor Show, two new Changfeng models were unveiled – a new SUV called the Liebao CS7 and a compact MPV called Kylin, styled by Italy’s Pininfarina. Li said the company wanted to become a global player. “Changfeng must step out of our comfort zone into global competition,” he said. “It is the only way to establish ourselves as a truly global player.”
Both the CS7 and the larger Liebao CS6, shown last year, are now on sale in China, and Li said the company planned to launch two new models every year.
DATED: 16.01.08
FEED: AM
Used car complaints continue to grow
Used car sales by independent retailers prompted the highest level of complaints in 2007 to the UK’s official consumer advice body Consumer Direct.
A record 41,800 complaints were dealt with in relation to used cars last year, rising by almost a fifth on the previous year. A further 13,322 complaints about second hand cars bought from franchise dealers was at number 10 for most complained about business. Independent garage repairs were also the cause of 15,253 complaints in 2007.
Michele Shambrook, Consumer Direct operations manager, said: "The rise in complaints in 2007 reflects a growing awareness of the service among the general public, as well as an increasing willingness among consumers to complain when they buy unsatisfactory goods or receive poor service.
"Consumers are finding that by arming themselves with information about their rights, they stand a better chance of resolving problems with shops and traders."
Consumer Direct, which is Government funded and offers advice on consumer issues by telephone and email.
Top 10 complaints in 2007;
1. Used cars bought from independent traders: 41,880
2. Mobile phone service agreements: 34,679
3. TVs: 19,744
4. Mobile phone hardware: 17,760
5. Personal goods and services: 16,976
6. General building work: 15,598
7. Independent garage repairs: 15,253
8. Upholstered furniture: 14,024
9. Internet service providers: 13,536
10. Used cars bought from franchises: 13,322
DATED: 16.01.08
FEED: AM
A record 41,800 complaints were dealt with in relation to used cars last year, rising by almost a fifth on the previous year. A further 13,322 complaints about second hand cars bought from franchise dealers was at number 10 for most complained about business. Independent garage repairs were also the cause of 15,253 complaints in 2007.
Michele Shambrook, Consumer Direct operations manager, said: "The rise in complaints in 2007 reflects a growing awareness of the service among the general public, as well as an increasing willingness among consumers to complain when they buy unsatisfactory goods or receive poor service.
"Consumers are finding that by arming themselves with information about their rights, they stand a better chance of resolving problems with shops and traders."
Consumer Direct, which is Government funded and offers advice on consumer issues by telephone and email.
Top 10 complaints in 2007;
1. Used cars bought from independent traders: 41,880
2. Mobile phone service agreements: 34,679
3. TVs: 19,744
4. Mobile phone hardware: 17,760
5. Personal goods and services: 16,976
6. General building work: 15,598
7. Independent garage repairs: 15,253
8. Upholstered furniture: 14,024
9. Internet service providers: 13,536
10. Used cars bought from franchises: 13,322
DATED: 16.01.08
FEED: AM
Jaguar and Land Rover report healthy sales
Ford’s on-the-market luxury marques Land Rover and Jaguar are both performing strongly in the market, according to Reuters.
Land Rover has said it is strongly in profit, with its 2007 global sales increasing nearly 18 per cent to 226,395 units.
Jaguar, meanwhile, has said it expects a much stronger sales year in 2008, in part due to the launch of the new XF sedan.
DATED: 16.01.08
FEED: MT
Lookers trading update
Lookers has said that its current trading performance falls “within the range” of current market expectations. In a trading statement for the completion of the financial year ended 31 December 2007, the Manchester-based dealer group said despite its good performance its outlook would be cautious.
“In line with the current economic climate, new and used vehicle trading continues to be competitive,” Lookers said.
“Whilst we remain cautious of the market generally, we are confidentof another year of progress.”
New car volumes were ahead of 2006 but Lookers said margins for both new and used cars came under pressure, especially in the final quarter of last year.
DATED: 16.01.08
FEED: MT
Chrysler UK appoints new boss
Chrysler has named Simon Elliott as its new managing director for the UK.
Elliott had been acting managing director since the shock departure of predecessor Peter Lambert in October but the change has now been made permanent.
He previously held the same role after joining Chrysler in 1999 as managing director when the Chrysler Jeep import companies were merged into Mercedes-Benz.
He is widely attributed as being responsible for the brand's establishment and growth in the UK.
Elliott left in 2006 to head up Chrysler's new business in China.
"I am extremely glad to come back home to work with the excellent team in Milton Keynes and with our great dealer network," said Elliott.
"We have launched 14 new vehicles in the UK in the last two years and this product offensive will continue in 2008.”
DATED: 15.01.08
FEED: MT
Monday, January 14, 2008
Ferrari targets used car sales
Ferrari has formally launched its first approved used car programme in a strategic move to attract new customers to the sporting marque and increase the number of used cars sold by its dealer network.
The programme, the first of its kind in the world, is being piloted in the UK and is expected to form the basis of its used car offering in key markets including Italy, Germany and America.
The brand's 15-strong UK network has been piloting the Ferrari Approved programme since last May and will begin to actively promote it from this week on its website.
DATED: 14.01.08
FEED: MT
Saab enters small SUV market
Saab is poised to enter the SUV market after launching the 9-4X BioPower concept car at the North American International Auto Show in Detroit today.
The crossover model heralds the start of the brand’s move into new model sectors.
“This concept is a clear statement of what our brand is about,” said Saab managing director Jan Ake Jonsson.
“It is also an important next step in our plans to enter new market segments with distinctive product offerings.”
The concept runs on bioethanol fuel and features a four-cylinder 2.0-litre turbo engine.
DATED: 14.01.08
FEED: MT
Car dealer groups suffer stock exchange slump
Automotive Retail equities in the UK experienced a tumultuous end to the year as share prices among the major companies plummeted.
Pendragon, the UK's largest dealer group, recorded the most significant dip in its share price, which ended the year at less than a quarter of the peak it reached in the middle of 2007.
The giant group's shares were nearly 65 per cent off their 2007 opening level.
DATED: 14.01.08
FEED: MT
