Friday, March 07, 2008
Audi named as the top car franchise
Car dealers have voted Audi the most valuable franchise for the third time in a row.
Audi continued its winning streak in the RMIF's National Franchised Dealers' Association Dealer Attitude Survey for winter 2007/2008, scoring 9.5 out of 10 and easily beating second-placed Mini, which scored 8.4.
Having been toppled from first spot in the winter 2006/2007 survey, Mini bounced back to second this time around.
DATED: 07.03.08
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Carmaker rebuked for misleading 'green' claim
An advertisement for an eco-friendly car overstated its environmental credentials, according to the Advertising Standards Agency. The Saab BioPower national press advert showed parallel horseshoe prints and tyre marks and stated: "More horsepower and a smaller carbon footprint." It said that its bioethanol fuel, which it made from crops reduced carbon dioxide emissions by up to 70%. But the ASA ruled: "We considered that readers were likely to infer that bioethanol did not add a significant amount of CO2 to the atmosphere. We considered that a 30% net addition to atmospheric CO2 was significant and therefore concluded that the claim was likely to mislead."
DATED: 07.03.08
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DATED: 07.03.08
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Mitsubishi joins anti congestion charge gang
Mitsubishi is the latest brand to take a swipe at the proposed hike to the London congestion charge.
Lance Bradley, UK sales and marketing director, told Motor Trader there was “not a great deal of logic” in London mayor Ken Livingstone's plan to increase the daily charge to £25 for cars emitting 225g/km Co2 or more.
“It is not a well coordinated plan to heavily penalise one group of vehicles over those emitting one gram less,” said Bradley.
DATED: 07.03.08
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Interest rates kept on hold
The Bank of England has announced that interest rates will stay on hold at 5.25%.
Analysts have highlighted that the Bank faces the threat of a slowing economy at a time when inflationary pressures are rising.
In February, the bank cut rates by a quarter of a percentage point from 5.5%, amid signs of a slowdown in the economy.
February's interest rate cut was the second lowering of UK rates in three months, with the previous reduction coming in December last year.
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Analysts have highlighted that the Bank faces the threat of a slowing economy at a time when inflationary pressures are rising.
In February, the bank cut rates by a quarter of a percentage point from 5.5%, amid signs of a slowdown in the economy.
February's interest rate cut was the second lowering of UK rates in three months, with the previous reduction coming in December last year.
DATED: 07.03.08
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Rourke looks to China for business
Former Dutton Forshaw managing director Maurice Rourke is back in the automotive industry with two new ventures.
“I have spent the last couple of years going to China and talking to the manufacturers,” he said. “There are probably half a dozen looking to come to the UK.”
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“I have spent the last couple of years going to China and talking to the manufacturers,” he said. “There are probably half a dozen looking to come to the UK.”
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Suzuki dealer takes on LDV
LDV has appointed a Hampshire dealer to bolster its growing network of commercial vehicle specialists.
Town and Country Vans has invested over £200,000 in a new two and a half acre site in Aldershot, offering van operators the complete range of LDV Maxus vehicles.
A Suzuki car dealership for over 20 years, Town and Country Vans' new location marks its first expansion into the commercial vehicle market.
Guy Foster, Town and Country managing director, said: "We are very pleased to be part of the successful Maxus brand and believe the introduction of the LDV range compliments our existing service while allowing us to enter new markets.
"Our relocation to a larger site and the recruitment of a new team of LDV trained specialists and mechanics is just the start of our expansion programme, which we are committed to expanding further in the coming year."
DATED: 07.03.08
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Town and Country Vans has invested over £200,000 in a new two and a half acre site in Aldershot, offering van operators the complete range of LDV Maxus vehicles.
A Suzuki car dealership for over 20 years, Town and Country Vans' new location marks its first expansion into the commercial vehicle market.
Guy Foster, Town and Country managing director, said: "We are very pleased to be part of the successful Maxus brand and believe the introduction of the LDV range compliments our existing service while allowing us to enter new markets.
"Our relocation to a larger site and the recruitment of a new team of LDV trained specialists and mechanics is just the start of our expansion programme, which we are committed to expanding further in the coming year."
DATED: 07.03.08
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Dealers cry foul over Toyota bonuses
Tensions are rising in the Toyota retail network after the carmaker announced a new bonus structure that seriously impacts on dealers’ ability to make money.
The effect of the new scheme, which now centres on volume bonus payouts of 1.5% instead of standards-based bonuses of 4.4%, has been immediate, according to composites seen by AM.
They show that in January, traditionally the Toyota network’s third strongest financial trading month, dealers only averaged breakeven.
"This is the first time we have ever been as low as breakeven in January," one Toyota retail boss said. "It says to me that the network will lose money this year."
DATED: 07.03.08
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The effect of the new scheme, which now centres on volume bonus payouts of 1.5% instead of standards-based bonuses of 4.4%, has been immediate, according to composites seen by AM.
They show that in January, traditionally the Toyota network’s third strongest financial trading month, dealers only averaged breakeven.
"This is the first time we have ever been as low as breakeven in January," one Toyota retail boss said. "It says to me that the network will lose money this year."
DATED: 07.03.08
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Thursday, March 06, 2008
Toyota to invest £88m in Welsh plant
Toyota has announced an £88m investment in its North Wales engine factory.
It plans to build a new 4-cylinder, 1.3-litre engine which is scheduled to go into production late next year.
The announcement is the second major investment at the Deeside plant in the past year and takes the total investment by the Japanese carmaker in Wales to £700m.
DATED: 06.03.08
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Daimler claims technology breakthrough
Daimler has announced a breakthrough in battery technology, claiming it is the world’s first manufacturer to adapt lithium-ion technology to the requirements of automotive applications.
This type of battery, which until now has been used primarily in consumer electronics, will be used in the series-production S 400 BlueHYBRID at the start of next year.
Dr Thomas Weber, Daimler’s head of group research and Mercedes-Benz Cars development said: “What we have here is a groundbreaking key technology that is going to be a decisive factor for the future success of the automotive industry.
DATED: 06.03.08
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Vertu Motors grows car supermarket business
Vertu Motor’s Motor Nation car supermarket chain has opened its fourth site in Doncaster, replacing the former Dixon Motor Rover dealership.
Michael Breen, Motor Nation operations director, told Motor Trader he expected the site to sell around 1,800 units per year, and was in discussions to open further sites.
“We are looking to expand. We envisage that Doncaster will be the first of a number of new businesses under the Bristol Street Motor Nation banner.”
DATED: 06.0308
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Morgan unveils hydrogen-powered sports car
Morgan has unveiled a new hydrogen-powered sports car that emits nothing but water vapour from its exhaust.
The Lifecar, based on the design of the Morgan Aero-8 roadster, has been developed by a consortium of UK companies and universities but headed by the UK car company.
The £1.9m project, funded in part by the UK government, has been in development for nearly three years. The car is due to premiere at the Geneva Motor Show this week, acting as a showcase for technology that can deliver 150mpg.
DATED: 06.03.08
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Porsche set to buy control of VW
Porsche has said it will take a controlling stake in Volkswagen, in a deal that is potentially worth almost 10bn euros ($15.2bn, £7.7bn). The maker of the luxury 911 sports car already holds 31% of VW shares. On Monday, its supervisory board agreed to raise the stake to above 50%. In a separate deal, Volkswagen said it will buy a controlling stake in Swedish truck maker Scania for $4.4bn. The two deals will create a huge auto business under Porsche's control.
DATED: 06.03.08
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DATED: 06.03.08
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LPG cars lose C-charge discount
Motorists who converted their cars to use environmentally friendlier fuels to avoid paying the congestion charge could lose their exemption. Transport for London (TfL) has announced plans to phase-out the Alternative Fuel Discount (AFD). But the move would only affect a "very small number of car owners," a TfL spokesman said. Vehicles running on fuels such as liquefied petroleum gas (LPG) will be affected by the proposed change. TfL plans to stop offering the 100% discount completely by 2010 and will not offer the AFD to new registrations.
DATED: 06.03.08
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DATED: 06.03.08
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Mitsubishi shuns London Motor Show
Mitsubishi will not exhibit at the 2008 British International Motor Show to be held in July at London’s Excel Centre.
The brand said the show was too expensive and did not drum up enough business last time to warrant a return.
“It’s not just the cost of the stand, it’s the staff costs too with hotels and the congestion charge,” said Lance Bradley, sales and marketing director.
DATED: 06.03.08
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Car dealers rank among UK's best brand
Inchcape, HR Owen, the AA and the RAC are rated as the UK’s top automotive business brands in the latest league table published by the Superbrands research organisation.
The list, topped this year by Google, rates which brands are the most powerful in the UK, and while none made it to the very top, a few names from the automotive sector made it into the 500.
AA came in 64th place, followed by the RAC at 82. Eurocar rental came in at 284.
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The list, topped this year by Google, rates which brands are the most powerful in the UK, and while none made it to the very top, a few names from the automotive sector made it into the 500.
AA came in 64th place, followed by the RAC at 82. Eurocar rental came in at 284.
DATED: 06.03.08
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GM chief calls global warming a "crock of shit"
Vice-President Bob Lutz defends his comments on the GM blog
General Motors vice-chairman Bob Lutz has defended remarks he made in Texas earlier this year when he said global warming was a “total crock of shit”.
Short of making an apology, he recently wrote on the GM blog: “An offhand comment I made recently about the concept of global warming seems to have a lot of people heated, and it's spreading through the internet like ragweed.
“But I think that the people making a big deal out of it are missing the real point. My beliefs are mine and I have a right to them, just as you have a right to yours.”
DATED: 06.03.08
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Daimler reports £1.48bn Chrysler losses
Chrysler recorded a net loss of $2.92bn (£1.48bn) between the close of its sale on 4 August and the end of September, according to previous owner Daimler’s recently published 2007 financial report.
The loss has been attributed mainly to the agreement with the US United Auto Workers union and exceptional restructuring costs which were not necessarily incurred during the two-month period.
Chrysler, which was acquired by private equity firm Cerberus for $7.4bn last May, has disputed the report, however.
DATED: 06.03.08
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Monday, March 03, 2008
Pendragon dismisses profit fears
Pendragon, the UK’s largest car dealer, has shrugged off claims by a market analyst that it will fail to hit its profit target for 2008.
Stockbroker Brewin Dolphin predicted the group would post profit before tax and exceptionals of just £22.4m this year – a 35 per cent fall on 2007’s figure and less than half the £50m target set by Pendragon.
But David Forsyth, finance director of the £5bn turnover group, told Motor Trader: “There are half a dozen analysts out there, they all have different agendas. The consensus is that we’ll take £20m more in 2008 than we did in 2007.”
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Stockbroker Brewin Dolphin predicted the group would post profit before tax and exceptionals of just £22.4m this year – a 35 per cent fall on 2007’s figure and less than half the £50m target set by Pendragon.
But David Forsyth, finance director of the £5bn turnover group, told Motor Trader: “There are half a dozen analysts out there, they all have different agendas. The consensus is that we’ll take £20m more in 2008 than we did in 2007.”
DATED: 03.03.08
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Daimler reports £1.48bn Chrysler losses
Chrysler recorded a net loss of $2.92bn (£1.48bn) between the close of its sale on 4 August and the end of September, according to previous owner Daimler’s recently published 2007 financial report.
The loss has been attributed mainly to the agreement with the US United Auto Workers union and exceptional restructuring costs which were not necessarily incurred during the two-month period.
Chrysler, which was acquired by private equity firm Cerberus for $7.4bn last May, has disputed the report, however.
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Toyota predicts building 11 million vehicles by 2012
Toyota Motor Corporation is expecting its global production and sales to rise by around 30 per cent to over 11 million units in 2012.
Growing demand in emerging economies including China and India is expected to account for the rise, according to a report in the Japan Times.
In 2007, Toyota produced 8.53 million vehicles and sold 8.43 million units worldwide.
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Fake Ferrari gang is caught
Police have broken up a ring of counterfeit Ferrari makers in Sicily who were selling the bogus cars for just £15,000 each – about a tenth of the price of a real one.
Fifteen people have been accused of producing the vehicles and selling them to enthusiasts that are aware that they are buying a fake.
The body workers, who police described as “very able”, created the cars using altered components from other vehicles as well as a limited number of original items.
Police have confiscated 21 cars, 14 of which had already been sold and 7 of which were still in production in Palermo.
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British car marques are motorists dream drive
Three-quarters of drivers want luxury UK marques
The vast majority of UK motorists would buy British car marques if money were no object.
New research from online insurance company swiftcover.com found that three-quarters of motorists would buy British if they had a budget of at least £100,000.
Bond's favourite the Aston Martin was the most popular choice, with 24 per cent of drivers saying it would be their ideal purchase.
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Carmakers could earn emissions reprieve
The European Commission’s policy of fining carmakers in violation of CO2 emissions rules has been challenged by the European Parliament’s legal affairs committee, according to the Financial Times.
Under the proposal, carmakers could be fined up to €13bn (£9.9bn) annually for violating targets.
The committee said the proposal exceeded Brussels’s remit and issued a report saying that fining a carmaker looked like a “tax for the benefit of the community” where the community had no “competence whatsoever to levy [such a tax]”.
The European Parliament’s legal service has been asked for an additional report looking into the issue by the committee.
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Trader Media Group plays down TDS closure
Trader Media Group has played down the significance of the closure of its provenance check arm, Trader Data Systems.
Marketing director Matt Thompson said the company was not considering this loss a failure.
“This isn’t significant from our point of view – it’s a strategic change,” he said. “We’re now focused on extending our service, and it’s part of that refocus.”
DATED: 03.03.08
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Nidd Vale acquires Ilkley Garage
Nidd Vale Group, the Harrogate independent motor retailer, has acquired Glovers Garages in Ilkley for an undisclosed sum.
The group said the acquisition was in line with the its agreed strategy to grow through acquisition following its management buy-out in September last year.
Glovers Garages will take combined turnover of the enlarged Nidd Vale Group to more than £80 million. The Group currently operates four franchises from its Harrogate and Wetherby locations. The site will be rebranded as Nidd Vale.
Nigel Pullan, Nidd Vale’s chief executive, said: "The acquisition of Glovers is a great opportunity for Nidd Vale as it not only gives us another franchise, but also representation in another town, where it is the only franchised dealer."
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The group said the acquisition was in line with the its agreed strategy to grow through acquisition following its management buy-out in September last year.
Glovers Garages will take combined turnover of the enlarged Nidd Vale Group to more than £80 million. The Group currently operates four franchises from its Harrogate and Wetherby locations. The site will be rebranded as Nidd Vale.
Nigel Pullan, Nidd Vale’s chief executive, said: "The acquisition of Glovers is a great opportunity for Nidd Vale as it not only gives us another franchise, but also representation in another town, where it is the only franchised dealer."
DATED: 03.03.08
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Helston Garages grow to five BMW/Mini outlets
Helston Garages Group has increased its influence as a BMW/Mini dealer with the purchase of two outlets in the West Country, which have been added to its sales and service points with the brands in Exeter, Barnstaple and Yeovil.
The additions are a Tice and Son dealership in Dorchester, and LJ Irvine’s outlet in Bridgwater. A BMW UK spokesman says: “We did not broker the deals but we fully support Helston Garages’ acquisitions.”
He would not comment on whether BMW had wanted Tice and Irvine to be replaced, adding: “BMW views Helston as an important regional dealer partner in the west of England. There are no further plans for the group to expand with BMW at this time.”
The prices paid for the dealerships have not been disclosed. Helston Garages managing director Andrew Barret was unavailable, and no one else would comment on the group’s latest expansion.
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The additions are a Tice and Son dealership in Dorchester, and LJ Irvine’s outlet in Bridgwater. A BMW UK spokesman says: “We did not broker the deals but we fully support Helston Garages’ acquisitions.”
He would not comment on whether BMW had wanted Tice and Irvine to be replaced, adding: “BMW views Helston as an important regional dealer partner in the west of England. There are no further plans for the group to expand with BMW at this time.”
The prices paid for the dealerships have not been disclosed. Helston Garages managing director Andrew Barret was unavailable, and no one else would comment on the group’s latest expansion.
DATED: 03.03.08
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Non-exec joins Caffyns
Caffyns has appointed Nick Hollingworth as a non-executive director with effect from March 1, 2008.
Hollingworth is currently group chief executive of Austin Reed Group, formerly Austin Reed plc which de-listed from the London Stock Exchange on January 8, 2007.
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Hollingworth is currently group chief executive of Austin Reed Group, formerly Austin Reed plc which de-listed from the London Stock Exchange on January 8, 2007.
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C&C Shareholders back new start
Indebted training group Carter & Carter has been given a chance at a new start. Shareholders voted at an extraordinary general meeting last Friday to allow more borrowing as the group prepares to restructure.
Investors had been warned that unless extra working capital was secured, the group would have to go into administration. Its debts already total £129 million and its board expects that to increase to £175m this summer in order for the company to relaunch.
Industry sources expect the group to re-focus on the automotive training services which were the business’s original core. It currently runs apprenticeship programmes for 21 carmakers, including Volkswagen, Vauxhall, Toyota, Renault, Peugeot and Mercedes-Benz.
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Investors had been warned that unless extra working capital was secured, the group would have to go into administration. Its debts already total £129 million and its board expects that to increase to £175m this summer in order for the company to relaunch.
Industry sources expect the group to re-focus on the automotive training services which were the business’s original core. It currently runs apprenticeship programmes for 21 carmakers, including Volkswagen, Vauxhall, Toyota, Renault, Peugeot and Mercedes-Benz.
DATED: 03.03.08
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Experian to benefit as rival announces closure
Trader Data Systems (TDS), Trader Media Group’s vehicle provenance and mileage checking business, has been closed just 16 months after its launch.
Sales of TDS’s Vehicle Check – which checked whether a car had been stolen or clocked, had a number plate change, had outstanding finance or had been involved in a major accident – ceased on February 20. All of its existing customers will be given a two-month period to allow them to change to a new supplier.
TDS has already agreed a deal with Experian to enable smooth transfer of customers to its vehicle data checking platform.
DATED: 03.03.08
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Sales of TDS’s Vehicle Check – which checked whether a car had been stolen or clocked, had a number plate change, had outstanding finance or had been involved in a major accident – ceased on February 20. All of its existing customers will be given a two-month period to allow them to change to a new supplier.
TDS has already agreed a deal with Experian to enable smooth transfer of customers to its vehicle data checking platform.
DATED: 03.03.08
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HR Owen the subject of a takeover bid?
HR Owen’s biggest shareholder has hinted that he may launch a takeover bid for the luxury car dealer. Neville Crichton, governing director of the Australia-based firm Balverona, has increased his holding in the company to just over 27 per cent and is considering upping his stake, according to press reports.
Balverona has gradually built up its shareholding in the luxury dealer group, ranked 31 in the Motor Trader Top 200, close to the 30 per cent threshold that would require it to make a public offer.
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Balverona has gradually built up its shareholding in the luxury dealer group, ranked 31 in the Motor Trader Top 200, close to the 30 per cent threshold that would require it to make a public offer.
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BMW poised to wield the axe
BMW has announced it plans to cut another 5,600 jobs by the end of 2008 in Germany and other markets.
The decision comes after the carmaker's elimination of 2,500 other positions in a move to cut expenses as part of a wider cost-cutting programme.
Head of BMW personnel Ernst Baumann told reporters in Munich that the job eliminations would include 2,500 full-time workers and 2,500 temporary workers, as well as 600 other positions. He said the cuts would bring the company's total up to 8,100 position eliminations, representing around 7.5 per cent of its work force worldwide.
DATED: 03.03.08
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Used car dealers struggle for quality stock
Used car dealers are finding saleable stock harder to come by in the wake of poorer quality part-exchange vehicles.
Dealers have reported that they can no longer rely on customer part-exchanges to provide good quality used stock for the forecourt in a study by Cap.
Three-quarters of dealers believe there is a dearth of good used cars in the February market and the same figure believe they are being offered a poorer standard of part-exchange vehicles compared to a year ago.
DATED: 03.03.08
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