F&I Management & Training

Britain's first hydrogen fuel station will open today (Thursday, April 17) at Birmingham University, which is conducting trials with a fleet of five fuel cell vehicles. Another three hydrogen stations are planned for London with Transport for London planning to introduce a fleet of 70 hydrogen-powered vehicles starting next year. And, it is being suggested, that there will be at least 12 hydrogen filling stations around the UK by 2010, paving the way for the commercial production of cars powered by fuel cells. The motor industry has viewed fuel cells as the holy grail of emission-free motoring that will also help relieve dependence on oil. The Birmingham and London fuel stations are being installed by Air Products. (The Times)

DATED: 18.04.08

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BMW has a fight on its hands as it guns for a fourth consecutive International Engine of the Year title. The German marque, which has scooped more trophies for engine excellence than any other company in the Awards' 10-year history, faces tough competition from over 20 new entrants to the Awards in 2008. Expected to fare well in this year's Awards are three particularly strong challenges from Japan. Subaru's first-ever diesel is a much-respected effort, while Nissan's 3.8-litre twin-turbo, found under the hood of the GT-R, and Mitsubishi's 2-litre turbo in the EVO X are technologically advanced and powerful. Strong contenders for BMW's crown also comes from Europe, with Audi's 5-litre V10, Fiat's small, but powerful 1.4-litre Turbo, and Volvo's 3-litre turbo from the V70 to name just three. Meanwhile there are high hopes for North American success thanks to GM's new 6.2-litre turbo that powers the Corvette ZR1 and Cadillac CTS-V, plus Chrysler's 1.8-litre joint effort with Mitsubishi and Hyundai could well yield results.

DATED: 18.04.08

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Stadco hitch will not affect MG TF production
Nanjing Automotive has denied that Longbridge production of the revamped MG TF will be delayed by the exit of a key body part supplier.
Earlier this week Stadco announced it would not build the model's body panels at the site as previously planned.

While the move has reportedly alarmed some suppliers who are now questioning the viability of the MG project, NAC has said the MG launch will not be affected.
The company said: “NAC is confident that the current body in white manufacturing capability, quality and progress being achieved has secured a launch quantity sufficient for a production start and continue without a break in supply.”

DATED: 18.04.08

FEED: MT

Manufacturers aiming to boost showroom traffic with finance deals
Car manufacturers have launched a wave of second quarter zero per cent interest finance deals in a move to boost showroom traffic.
According to Trend Tracker, the independent market analyst, free interest finance offers have recently increased and this could be in response to the slowdown in loans from high street banks.

“In the current climate I would be surprised if these deals didn't become more frequent,” said Toby Procter, a consultant at Trend Tracker.
“I would say they are more common now than they would have been this time last year.”

DATED: 18.04.08

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Andrew Sproston joins from Hyundai Motor UK
Fiat has announced the appointment of a new sales director for the UK.
Andrew Sproston joins the carmaker from Hyundai Motor UK where he held the position of direct and retail operations manager.

He has also held the positions of national sales operations manager and retail finance manager with the South Korean brand.
Previously, Sproston has worked for Rover, Ford and Abbey National.
Meanwhile, Fiat has appointed Neill Richards to the role of regional corporate sales manager.
Richards will be responsible for building the Italian brand's profile with fleets in the north of England and has previously worked in the industry for Kwik-Fit fleet and Skoda.
Fiat said the appointment would strengthen its overall UK corporate sector offering.

DATED: 18.04.08

FEED: MT

Lloyds TSB Group has lifted its stake in Vertu Motors to 4.66%.
The bank purchased 1.45 million shares taking it to 4.28 million, up from 2.83 million.
The announcement comes just a five days after Vertu asked its shareholders to approve its plan to buy back 10% of its own shares.
Vertu’s directors want to enhance its earnings per share through the buy-back, which will reduce the number of remaining shares in circulation.
Vertu’s financial results will be announced on May 14.

DATED: 18.04.08

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Vauxhall has launched a new service and maintenance plan which allows customers to pay a fixed monthly charge.
Customers can choose to pay £29.99 a month covers routine servicing and wear and tear on things like brakes, tyres and exhaust systems.
John Deed, Vauxhall aftersales marketing manager, said: "Most motorists today appreciate the importance of routine servicing.
"But it is not easy to predict how much the cost of wear and tear on your car can add up to over the first three years. Our new initiative ensures that there are no nasty surprises further down the road."
All parts and labour costs for routine servicing and additional essential repairs to any wear and tear items are covered, including disc and drum brakes, clutches, steering joints, shock absorbers, exhausts and wiper blades.
The new service and maintenance plan is designed to complement Vauxhall’s standard three year manufacturer’s warranty. It does not cover accidental or malicious damage, which would normally be covered through the owner’s insurance policy.

DATED: 18.04.08

FEED: AM

Luxury model takes top honours
The Jaguar XF has been named as the best oil burner in the What Diesel Car of the Year 2008 awards.
The new model, which also won the best executive diesel title and has already been named What Car of the Year, beat winners in ten different categories to scoop the top prize.

The Fiat 500 was named as the best small car, Land Rover took the best 4x4 title for its Freelander 2 off-roader and the Nissan Qashqai won the best medium family car category.
Other winners included the Ford Mondeo in the best large family car category, the Kia cee'd SW was named the best estate car and the best MPV was the Citroen C4 Grand Picasso.
What Diesel Car of the 2008 Winners
Best small car Fiat 500Best medium family car Nissan QashqaiBest large family car Ford MondeoBest executive car Jaguar XFBest estate car Kia cee’d SWBest MPV Citroën C4 Grand PicassoBest 4x4 Land Rover Freelander 2Best pick-up Nissan NavaraBest coupé Audi A5Best convertible Volkswagen EosGreen award CitroënOverall winner Jaguar XF
Citroen also scooped the green award for its efforts to reduce emissions.
“I am delighted to announce that the Jaguar XF has won the title. The car drives exceptionally, and looks absolutely stunning and catapults Jaguar right up the road to success,” said What Car? Editor Ian Robertson.

DATED: 18.04.08

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Carmakers will jointly produce a new small car and pickup
Chrysler and Nissan have extended a collaboration agreement to include two new vehicles which they will build for each other.
Nissan will manufacture an all-new fuel efficient small car based on a Chrysler concept which will be sold in Europe and America in 2010.

This follows an agreement in January when Nissan agreed to supply Chrysler with a car based on the Versa saloon for South America.
In return Chrysler will manufacture a full size pick-up based on a Nissan design. The model will be built in Mexico and sold in North America in 2011.
Financial details of the new agreement have not been released but in a joint statement the carmakers said they had agreed to maintain an "open dialogue" to explore further "product-sharing opportunities".

DATED: 18.04.08

FEED: MT

Body parts supplier ends supply agreement with Nanjing
MG production at Longbridge has been thrown into doubt after one of the main parts suppliers ended its contract with Chinese owner Nanjing.
Stadco, a body parts supplier, has announced that it will not build MG TF body panels at the site as previously planned.

The move has alarmed suppliers who are now questioning the viability of the MG project.

DATED: 18.04.08

FEED: MT

Lookers, the UK’s 5th largest car dealer group, has announced that it intends to acquire Bramall & Jones VW for £2m.
The company comprises of two Volkswagen dealerships and a contract hire and leasing business.

The deal will increase Lookers’ VW representation to 11 sites and offers it entry into the contract hire market with a fleet of around 1,500 vehicles.
Lookers’ announcement will not come as a surprise to many in the industry.

Tony Bramall, who owns a 51 per cent stake in Bramall and Jones, is also a non-executive director of Lookers with a stakehold of around 20 per cent.

DATED: 18.04.08

FEED: MT

New chairman David Betteley said at the annual dinner that the Finance & Leasing Association would make financial education “a particular theme” for the year ahead.
It would be vital for the FLA to continue to work with the Government to reduce the burden of regulation, said Betteley, Toyota Financial Services senior vice-president.
Regulation was a cost for member companies and made it harder for the industry to serve its customers, he said.

DATED: 15.04.08

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Billionaire investor Jack Petchey has amassed a 13% shareholding in Pendragon, leading to speculation he'll fight for a strategic overhaul.
Petchey, who also has a 4.5% stake in Lookers, has a track record as an activist shareholder and is expected to lobby Pendragon's board to make changes to improve its stock market performance.
Today's Daily Telegraph suggests these could be to pursue a merger, change its business model or to raise equity through sale and leaseback of its remaining property assets.
Market analysts believe shares in Pendragon are undervalued. In the last six months its share price has halved to trade currently at around 34p.
Petchey has had a long involvement in the car trade. At the end of the World War II, Petchey founded a one-man car-hire business, before branching out to sell cars. At one point, he became one of Britain's largest Austin Morris dealers with a chain of showrooms.

DATED: 15.04.08

FEED: AM

Spanish bank Santander, owner of high street bank Abbey, is taking over GE Money Motor Finance. It will make Santander one of the UK’s biggest dealer finance providers, in competition with Black Horse, Bank of Scotland Dealer Finance and Spanish group Mapfre.
GE is exiting the sector to concentrate on consumer finance where it believes it can make better profits. One analyst told AM: “I don’t think we’ll see another acquisition on this scale in the short term. With the credit crunch, people will be watching the fallout from this.
“If major players are pulling out of the market, it’s because they’re not making the margins they want. "And if another player were to fall out it would be very bad for dealers.”

DATED: 15.04.08

FEED: AM

Yorkshire car dealer Akif Butt has been imprisoned for six months after admitting selling clocked cars.
Bradford Crown Court heard last week that Butt had been a car dealer in Shipley for many years, trading as Cars R Us, For Motion and latterly SH Car Sales.
The prosecution said that between September 2005 and July 2006 Butt sold nine clocked cars and had six more ready for sale. He received more than £20,000 for the vehicles and made almost £4,000 profit. He had bought the vehicles at auction and had the mileages considerably reduced.
One BMW, sold for £2,800 with 88,000 miles on its odometer, had actually done 294,000 miles. Another customer bought a Renault Scenic for £3,500 with 56,000 miles showing, but it had covered twice that mileage.
In mitigation, Butt's solicitor said the offences were committed for economic reasons to pay bills and look after his children.
Butt was convicted of similar offences in 2001.
Judge Christoper Prince told Butt: "Those who go to garages lose faith in them and those who want to run businesses and provide vehicles are less likely to do so because of the behaviour of people like you."

DATED: 15.04.08

FEED: AM

A car dealer received a verbal warning after he parked a 4x4 on a traffic island in an attempt to sell the vehicle.
Medway Council intervened and gave the unnamed independent trader a warning. The council said: "Attempting to sell a vehicle in this way counts as street trading and is illegal in Medway under the Medway Council Act 2004. The legislation applies to any vehicle advertised for sale on the highway in Medway.

DATED: 15.04.08

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The £2.4 billion turnover Retail Automotive Alliance has entered into a partnership with the British Credit Trust because of its expertise in sub-prime finance.
BCT, founded in 1908, has wide experience with Ford which binds members of the RAA together, though some of its members’ 200 dealerships hold other franchises.
Stephen Kenchington, BCT sales and marketing director, said: “Ford is one of our most popular brands, making the potential for growth even more significant.”
Marc Matthew, RAA chairman, said: “I am looking forward to making huge advancements in non-prime finance. This partnership will support dealership sales teams with an additional tool to covert more enquiries into vehicle sales.”
The RAA was formed to provide privately owned dealer groups with the combined buyer power of plcs such as Pendragon, Lookers and Inchcape.

DATED: 15.04.08

FEED: AM

Dealers are being urged by finance companies to get to grips with the long-term implications of Chancellor Alistair Darling’s Budget changes to vehicle excise duty bands.

“In the short-term there will be only a limited impact on consumer buying habits, said Carlyle Finance CEO Mark Standish. “But looking forward, the changes will be more pronounced, Dealers would do well to understand the changes now, because it should influence the way they sell cars. By 2010, when the time the full changes are in place, today’s new car will be a used car
The sales advice given could impact long-term customer retention.”

DATED: 15.04.08

FEED: AM

Older used cars are the Cinderella stock of the dealer’s forecourt.
They go unloved, unnoticed and often unsold, destined for a life being traded in the independent sector. But are franchised dealers missing a major profit opportunity? Pendragon chief executive Trevor Finn thinks so.

He recently announced that his group would be looking to older used cars as a steady source of income that offered a safer bet for profits compared to the price fluctuations currently hitting the nearly new market. He said: “We will be recycling more of our own second-hand cars. The bulk of them will now get retailed.” Finn is determined that better income will be earned from the used cars available and has estimated that an average of only £35 a car is necessary to lift group earnings by £10 million.

DATED: 15.04.08

FEED: AM

Pendragon could be poised for an overhaul after it emerged that billionaire investor Jack Petchey has been secretly amassing a 13 per cent stake in the UK’s largest dealer group.
According to the Daily Telegraph, the 82-year-old is believed to have acquired his stakehold using contracts for difference (CFDs), which do not have to be declared as conventional investments normally are.

Petchey is known as an activist shareholder and Pendragon's recent poor trading has prompted speculation the group could be poised for a shake-up. Shares in Pendragon have fallen by 70 per cent over the last year and some sections of the finance industry believe its stock is undervalued.
The report suggested Petchey may pressurise the Pendragon board to pursue a merger, change its business model or raise equity from its property assets. He is already involved in the automotive retail sector and owns a 4.5 per cent stake in rival group Lookers - a former £259m takeover target of Pendragon's.

DATED: 14.04.08

FEED: MT

Franchised model is under threat and could face extinction
The current vehicle franchising model could face extinction warns the latest Trend Tracker white paper. A mix of over supply and rising oil prices could wipe out the current franchise car sales model, with cars leased by their makers rather than sold, according to the research entitled Weaknesses of the Auto Retail Franchise System.

“With the over-supply of inventory carmakers are turning to alternative retailers and intermediaries to sell cars. This makes the territorial basis of the franchise system increasingly irrelevant,” said report author Toby Proctor.

DATED: 14.04.08

FEED: MT

The European Commission has cleared a £500 million deal which gives Renault a 25% stake in Avtovaz, the Russian owner of Lada.
The clearance gives the French car manufacturer access to one of the world's fastest growing markets with a well-established brand.
Under the deal, Renault gets three of the 12 seats on the Avtovaz board and will share engines and technologies with the Russian company as it develops a new generation of Ladas. The Lada trademark will be preserved.
The deal brings Renault’s strategic shareholdings in other companies to three entities– the truck maker AB Volvo, Nissan and now AvtoVaz.

DATED: 14.04.08

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Top 10 AM100 group Vertu Motors is asking its shareholders to approve its plan to buy back 10% of its own shares.
Its directors believe the current share price, around 29.5p, undervalues the company. They want to enhance its earnings per share through the buy-back, which will reduce the number of remaining shares in circulation.
Its statement added that the proposal does not change Vertu Motors' strategies of pursuing further acquisitions of franchised dealerships and used car operations. Shareholders will vote on the proposal on May 9 at a general meeting in Newcastle.

DATED: 14.04.08

FEED: AM