Thursday, March 27, 2008
Tata deal will not impact on Jaguar and Land Rover car dealers
Jaguar and Land Rover car dealers in the UK are unlikely to be significantly affected by Tata’s acquisition of the two marques, according to an industry analyst.
Eric Wallbank, head of automotive at Ernst & Young, said he believed yesterday's acquisition was unlikely to change the way the retail networks would go about their everyday business.
“Tata's management style seems to be to let the companies it acquires run themselves,” said Wallbank.
DATED: 27.03.08
FEED: MT
Skoda tops Auto Express survey for second year
The Skoda Octavia has kept its title as Britain’s best car for the second year in a row in Auto Express’s Driver Power Survey.
While the Octavia did not get top marks in any of the individual categories, its overall rating was high enough to make it the UK's most satisfying car to own.
The model first stole the driver survey crown from the Honda S2000, which slipped from first to third place in 2007 and is down to sixth this year.
DATED: 27.03.08
FEED: MT
Nissan looks to an electric future
Nissan has begun testing the market for electric vehicles with its concept Denki Cube, which was unveiled at the New York Auto Show earlier this month.
The Japanese carmaker said it would launch a commercially produced electric car for fleet buyers in the US in 2010 and for retail customers in 2012.
Based on the standard Cube minicar, which has been available in Japan since 1998, Nissan claimed the Denki surpasses the hybrids of rival manufacturers in green terms as it is all-electric and produces zero-emissions.
DATED: 27.03.08
FEED: MT
Wednesday, March 26, 2008
Major chunk of Carter & Carter sold
A major chunk of failed training group Carter & Carter has been sold to Newcastle College by administrators Deloitte. It is understood that the deal excludes its automotive training operations, including the apprentice learning division.
According to Deloitte, the sale has saved around 1,500 of the 2,200 jobs at Carter & Carter. Newcastle College has taken on the group's businesses which provide training to workers under the Government-funded 'Train to Gain' brand.
Administrator Nick Dargan said most of the remaining 700 jobs would be made redundant, although some employees will be taken on by the motor manufacturers for whom Carter & Carter had provided training.
Dargan said that training provided by parts of the group that had not been sold, such as its apprentice learning unit, would be taken back in-house by the likes of Volkswagen and Ford or transferred to other businesses.
DATED: 26.03.08
FEED: AM
According to Deloitte, the sale has saved around 1,500 of the 2,200 jobs at Carter & Carter. Newcastle College has taken on the group's businesses which provide training to workers under the Government-funded 'Train to Gain' brand.
Administrator Nick Dargan said most of the remaining 700 jobs would be made redundant, although some employees will be taken on by the motor manufacturers for whom Carter & Carter had provided training.
Dargan said that training provided by parts of the group that had not been sold, such as its apprentice learning unit, would be taken back in-house by the likes of Volkswagen and Ford or transferred to other businesses.
DATED: 26.03.08
FEED: AM
The Big Picture: Picking up the pieces
What a mess. Financial irregularities; over-stated promises to the City; suspension of company shares; profit warnings; mounting debts of £129m; the death of its founder and figurehead – the demise of Carter & Carter has been a huge story.
Ultimately, it took a decision from the banks not to increase Carter & Carter’s borrowings to bring the business crashing down, although the writing had been on the wall since its shares were suspended in October. At that point they had slumped from almost £13 per share, giving a market cap of £526m to just 82.5p, valuing the company at just £34m.
That the company crashed so soon after the death of founder and talisman Phillip Carter was no coincidence. Without his ability to charm the City, all of Carter & Carter’s shortcomings quickly came home to roost. No-one could stop the tide of bad news.
Had he not died, would the outcome have been different? Given what we now know about the business, it’s likely that Carter could’ve only delayed the inevitable.
What happens now to the 2,000 employees, 25,000 learners (including 10,000 apprentices) and 28 carmakers with which Carter & Carter has some form of training or consultancy contract? There have already been closures and redundancies; more will follow.
There has been speculation about the RMIF buying back Remit, but Remit no longer exists – like Emtec before, it has been absorbed into the Carter & Carter set up. One bit of cheer for the RMIF is that it has received almost all the money owed by Carter & Carter. Part of the £25.5m fee was deferred, but AM understands that less than £1m is outstanding.
Carter & Carter puts into sharp focus the issues about sector domination. It also highlights the folly of those manufacturers who put all their eggs into one basket, like VW Group. Break-up is inevitable.
DATED: 26.03.08
FEED: AM
Ultimately, it took a decision from the banks not to increase Carter & Carter’s borrowings to bring the business crashing down, although the writing had been on the wall since its shares were suspended in October. At that point they had slumped from almost £13 per share, giving a market cap of £526m to just 82.5p, valuing the company at just £34m.
That the company crashed so soon after the death of founder and talisman Phillip Carter was no coincidence. Without his ability to charm the City, all of Carter & Carter’s shortcomings quickly came home to roost. No-one could stop the tide of bad news.
Had he not died, would the outcome have been different? Given what we now know about the business, it’s likely that Carter could’ve only delayed the inevitable.
What happens now to the 2,000 employees, 25,000 learners (including 10,000 apprentices) and 28 carmakers with which Carter & Carter has some form of training or consultancy contract? There have already been closures and redundancies; more will follow.
There has been speculation about the RMIF buying back Remit, but Remit no longer exists – like Emtec before, it has been absorbed into the Carter & Carter set up. One bit of cheer for the RMIF is that it has received almost all the money owed by Carter & Carter. Part of the £25.5m fee was deferred, but AM understands that less than £1m is outstanding.
Carter & Carter puts into sharp focus the issues about sector domination. It also highlights the folly of those manufacturers who put all their eggs into one basket, like VW Group. Break-up is inevitable.
DATED: 26.03.08
FEED: AM
Tuesday, March 25, 2008
Pendragon abandons bonus scheme
Pendragon, the UK’s largest car dealer group, has ditched controversial plans to introduce a one-off bonus scheme after meeting with shareholder opposition.
Investors objected to a scheme under which the management stood to benefit if the share price recovered to the levels of 12 months ago.
According to the Financial Times, the plan for The scheme was designed so that 100 executives would reap 10 per cent of additional shareholder returns - dividends plus share price appreciation - above a threshold of 110p.
DATED: 25.03.08
FEED: MT
Honda hit by runaway car problem
Honda has recalled 79,000 Civic models because of a faulty handbrake that causes the car to roll away when parked. Twenty-nine owners complained their handbrakes had failed, prompting the carmaker to issue the recall.
The problem affects cars produced between 2006 and 2007.
DATED: 25.03.08
FEED: MT
SMMT highlights green progress
The SMMT has highlighted the progress made by carmakers in cutting CO2 emissions in the wake of the government’s assault on gas guzzlers in the Budget.
Having pointed out average new car C02 emissions have dropped 13 per cent in a decade, SMMT chief executive Paul Everitt said: “The UK new car market is characterised by significant and consistent CO2 reductions.”
In the SMMT’s New Car CO2 Report 2008 Everitt claimed the motor industry backed CO2-based taxation as part of an integrated approach to cut emissions. But he said motorists must also be offered incentives to choose greener cars while legislation must not suppress the “diversity of UK manufacturers and choice in the market place”.
DATED: 25.03.08
FEED: MT
Maserati predicts UK sales boost
Maserati expects its UK dealer network to increase sales this year despite uncertainties in the economy. UK managing director Andrea Antonnicola said orders for its Gran Turismo coupe are strong and will be boosted once the S model, revealed at this month’s Geneva Motor Show, goes on sale.
“I think we’re in good shape to deliver 160 units in March. We also have 400-500 orders for the regular Gran Turismo,” he said.
DATED: 25.03.08
FEED: MT
