F&I Management & Training

New figures from Thatcham show popular 'City Cars' as the least effective in saving the occupant from debilitating whiplash injury in the event of low speed rear end collisions. The latest vehicle head restraint ratings, released by the insurers' research centre this week, reveal that in an increasingly popular sector, consumers looking to reduce their environmental impact are being short changed when it comes to safety with no 'City Cars' achieving a 'good' rating. As the UK authority on seat and head restraint safety, Thatcham's figures are sure to be a blow to motorists who in pursuit of economical, low emissions and easy to park vehicles are finding themselves more susceptible to sustaining whiplash. With most rear end collisions occurring during low speed city driving and with smaller, lighter cars being intrinsically higher risk, Thatcham's figures are of even more concern. Research Manager - Crash at Thatcham, Matthew Avery, who is responsible for the seat testing procedure and production of the ratings said, "Although across the board we are seeing improved seat designs with around 75% of all new seats tested now achieving a 'GOOD' or 'ACCEPTABLE' rating, more can certainly still be done. City cars are not equipped to protect their occupants' necks when they have to absorb the crash energy from larger, heavier vehicles which combined with poor seat design makes whiplash far more likely. Good seat design is not something that should be inherently linked to higher value cars and this latest set of results will hopefully act as a catalyst for vehicle manufacturers to look at improving seat and head restraints design within this important and growing sector." On the plus side Thatcham have now given their seal of approval to three vehicle manufacturers - Audi, Volvo and SAAB - who are to be congratulated on each having achieved an 'ALL GOOD' rating, thereby demonstrating a commitment to safe seat design across their entire range. A full set of seat ratings can be found on Thatcham's website at www.thatcham.org/ncwr

DATED: 02.05.08

FEED: AW

Fiat has tasked its dealers with winning custom from local small and medium businesses and announced its new Dealer Fleet Specialist (DFS) programme.
It is in the process of appointing 10 dealer members, and aims to increase this to 15 eventually.
Each dealer will be set a local fleet sales target, employ dedicated fleet sales specialists and put on corporate demonstrators. Finance training will be provided to enable each fleet specialist to engage with companies about a wide range of finance options including contract hire and contract purchase.
In aftersales, each DFS will provide a collection and delivery service in their local area for company car drivers who need their car serviced.
Fleet and remarketing director Adam Pumfrey believes hundreds of thousands of smaller companies who run small numbers of of company cars or vans provide a real sales opportunity for the brand.

DATED: 02.05.08

FEED: AM

BMW is cutting its 150-strong UK network by 17 according to German executives at the company.
AM reported that up to 20 dealers were privately told they had lost their contracts in its March 21 issue, but BMW is still keeping tight lipped on which dealers have been axed despite announcing official numbers in Munich.
BMW gave its formal six-month termination notice of the franchise agreements to coincide with the end of five-year agreements under Block Exemption rules.
A spokesman for BMW said the dealer networks were reviewed on a case-by-case basis and that "some BMW contracts might be taken over by another dealership and some would stay as service providers".
BMW's German franchised dealer network has also been reduced by 30, down from 320.
The news follows a Q1 loss in pre- tax profits of 24.8% to €641m (£506m). However, the company said it was still confident of posting higher profits this year than it did in 2007.

DATED: 02.05.08

FEED: AM

The Institute of the Motor Industry (IMI) has taken on responsibility for SkillAuto, which identifies and supports entrants in competitions aimed at those at the start of their automotive careers.
Lesley Woolley, IMI head of professional development, said: “By adding SkillAuto to our plans to make a career in our sector highly attractive, we will be highlighting the world class skill levels at which individuals now need to work at in the sector, re-enforcing their status as professional engineers and delivering long overdue status and respect.”
SkillAuto competitions cover light and heavy vehicle servicing, as well as vehicle body repair and painting. They are designed to reflect the latest advancements in technology and business requirements, providing candidates with the opportunity to develop their skills further.
Candidates for the 2009 Worldskills in Canada are in the process of being selected through a series of regional heats, the finals of which take place at Thatcham in June, after which the focus will turn to the competition in London in 2011, which will precede the hosting of the Olympic Games in 2012.
In 2005, Andrew Blair won a gold medal in autobody repair in Helsinki, and last year, Jonathan Lloyd and Simon Noble each scooped a bronze medal in autobody repair and vehicle painting, respectively, in Japan, competing against finalists from 48 countries.

DATED: 02.05.08

FEED: AM

Norton Way Motors has won the contract to provide 100 Honda Civic Hybrids to British Airways, representing one of the largest hybrid fleet contracts in the UK.
The low-emission Civic Hybrids will make up nearly half of BA's total company car fleet, and after delivery this summer, will be used by the airline's sales force to cut each driver's CO2 emissions by one tonne per year.
Norton Way, which is now owned by Marubeni Auto Investment, will provide all the servicing for the 100 Civic Hybrids at its Letchworth site in Hertfordshire.
John Kingston, environment manager, Honda (UK), said: "The scale of this contract with BA is a ringing endorsement for the Civic Hybrid and its excellent environmental credentials.”
Total sales of Honda's Civic Hybrid trebled last year and corporate sales are up 295% to (537 units), compared to the same period in 2007.

DATED: 02.05.08

FEED: AM

Peter Jones, who recently left Bramall & Jones to join Lookers as an operations director, has bought 375,000 shares in his new employer.
His £337,500 investment has bought him a a 0.21% shareholding in Lookers.
Lookers announced last month that Jones was joining the Manchester-based dealer group. He has retained a stake in Bramall & Jones, the regional Audi dealer group he established with Tony Bramall.
Industry observers suggest his appointment may precede Lookers' acquiring BMW and Audi businesses. Lookers' franchises already under his care already include Volkswagen, Mercedes-Benz, Chrysler Group, Peugeot Citroen and Alfa Romeo.

DATED: 02.05.08

FEED: AM

Pendragon, the UK’s largest car dealer group, is poised to announce redundancies as it continues to realign its business structure to cope with worsening market conditions.
Chief executive Trevor Finn told Motor Trader that consultations were taking place within the group to assess job roles.

He said he expected some redundancies to follow but denied major job losses across the 370-strong network were imminent.“There may be one or two consultations taking place at some sites, but not on a big scale,” he said. An employee at one of the affected sites told Motor Trader that redundancies were taking place and that the group held a synchronised meeting last week across the group after the company's AGM, which all staff had to attend.
Finn also moved to quash industry rumours that the former Reg Vardy head office in Houghton House, Sunderland and Vardy Contract Motoring, were due to be shutdown.
“It's not true. It's just ridiculous speculation,” he said.

DATED: 02.05.08

FEED: MT

Analyst believes technological breakthroughs can aid other sectors
The automotive industry is placed to pioneer ground-breaking environmental technology that can be rolled-out to other business sectors, according to a leading industry analyst.
Giles Hundleby, Ricardo UK project director for clean energy, said cross-industry technologies and skills in design, engineering, development and testing in the sector could enable the rapid adoption of clean-tech solutions across all industries and sectors.

“The automotive industry has the engineering competence and consumer product design and integration skills to make a significant contribution to the green tech revolution,” he said.

DATED: 02.05.08

FEED: MT

The Royal Borough of Kensington and Chelsea has applied to join Porsche as an interested party in the judicial review of the Mayor of London’s £25 congestion charge.
Andy Goss, managing director of Porsche GB, said; “I am pleased that Kensington and Chelsea has joined us in our fight against this unfair, counter-productive tax against motorists.

“It is becoming increasingly clear that Londoners are rejecting this unfair £25 charge that will likely make congestion and the environment worse than it is today.”
Kensington and Chelsea is one of the central boroughs within the Congestion Zone, which also covers parts of Westminster.
The borough has the largest number of high-earners (individuals earning over £50,00 per year) than any administrative region in the country at 60,000 people

DATED: 02.05.08

FEED: MT

A significant 21 million motorists would consider switching to a more environmentally-friendly vehicle if the price was more competitive and the government offered incentives.
New research by Tescocompare.com found that financial incentives rather than environmental concerns are the main driver of car choice.

Almost two-thirds of motorists said they would be prepared to switch to a low-emitting vehicle if road tax was reduced but only a fifth would be persuaded by the higher taxes introduced on high-polluting vehicles in April’s budget.
“The message that the British driver is sending to the Government is empathetic – they are happy to embrace green driving but want to be rewarded for doing so,” said Paul Baxter of Tescocompare.com.

DATED: 02.05.08

FEED: MT

Carmaker records 17 per cent dip to €487m
BMW has announced that its first-quarter profits after tax fell by 17 per cent to €487m (£384m) but said it remained on course for a record sales year.
The German brand blamed the effects of the international financial crisis and a weaker US economy for “exceptional expenses”.
A loss of €236m in expenses, relating to additional risk provision in the car market and financial services segment, affected the group’s overall performance.

The Munich-based carmaker said the international financial crisis worsened in quarter one and the climate for consumer spending became gloomier, with used car prices falling.
This resulted in reduced revenue from vehicles at the end of lease contracts.
Despite the financial hit, BMW insisted it was on course to achieve its targets for the full year.
“Adjusted for the exceptional gain on the settlement of the exchangeable bond on shares in Rolls Royce in 2007, we are still aiming to post higher pre-tax earnings than last year," said Norbert Reithofer, chairman of the board of management of BMW AG in Munich today.
Compared to quarter one 2007, group revenues increased by 11.2 per cent to €13,285m but pre-tax profit fell 24.8 per cent to € 641m.

DATED: 02.05.08

FEED: MT

Tata, the Indian conglomerate that is in the process of acquiring both Jaguar and Land Rover, is to take a stake in Italian car designer Pininfarina. As a result, industry sources have suggested that the next generation of Jaguars could be designed by a Pininfarina-led team in India, although neither side has commented on the implications of the move for the British marques. Pininfarina is renowned for its work on a stable of supercars for manufacturers including Maserati and Ferrari and has signed a letter of intent to co-operate with Tata. The European Union has now approved Tata's $2.3 billion purchase of Jaguar and Land Rover.

DATED: 02.05.08

FEED: AW

New figures from Thatcham show popular 'City Cars' as the least effective in saving the occupant from debilitating whiplash injury in the event of low speed rear end collisions. The latest vehicle head restraint ratings, released by the insurers' research centre this week, reveal that in an increasingly popular sector, consumers looking to reduce their environmental impact are being short changed when it comes to safety with no 'City Cars' achieving a 'good' rating. As the UK authority on seat and head restraint safety, Thatcham's figures are sure to be a blow to motorists who in pursuit of economical, low emissions and easy to park vehicles are finding themselves more susceptible to sustaining whiplash. With most rear end collisions occurring during low speed city driving and with smaller, lighter cars being intrinsically higher risk, Thatcham's figures are of even more concern. Research Manager - Crash at Thatcham, Matthew Avery, who is responsible for the seat testing procedure and production of the ratings said, "Although across the board we are seeing improved seat designs with around 75% of all new seats tested now achieving a 'GOOD' or 'ACCEPTABLE' rating, more can certainly still be done. City cars are not equipped to protect their occupants' necks when they have to absorb the crash energy from larger, heavier vehicles which combined with poor seat design makes whiplash far more likely. Good seat design is not something that should be inherently linked to higher value cars and this latest set of results will hopefully act as a catalyst for vehicle manufacturers to look at improving seat and head restraints design within this important and growing sector." On the plus side Thatcham have now given their seal of approval to three vehicle manufacturers - Audi, Volvo and SAAB - who are to be congratulated on each having achieved an 'ALL GOOD' rating, thereby demonstrating a commitment to safe seat design across their entire range. A full set of seat ratings can be found on Thatcham's website at www.thatcham.org/ncwr

DATED: 02.05.08

FEED: AW

Carmaker will slash 17 UK dealers
BMW is reducing the number of franchised dealers in its two biggest European markets the UK and Germany.
The manufacturer has said it is not going to renew the contracts of around 17 of its 150 UK dealers and about 30 of its 320 dealer in Germany.
While BMW UK would not comment on the development, a spokesman from the carmaker's headquarters in Munich said it was not major news.

“This is not an extraordinary thing,” he said. “We're doing this kind of thing continuously as the dealer network is developing. “There's not an overall plan for cuts in the dealer network worldwide or anything like that – it just depends on the market.” BMW awarded its dealers five-year contracts in 2003, which will be up for renewal at the end of September.
News of the cuts follows the news that BMW took a €236m (£186m) hit in increased bank charges in the first quarter of 2008 due to the impact of the international credit crunch.

DATED: 29.04.08

FEED: MT

Billionaire investor acquires stake in blue oval
American billionaire financier Kirk Kerkorian has acquired a 4.7 per cent stake in Ford and plans to purchase 20 million additional shares for $170m (£86m).
Upon completion of this purchase, Kerkorian's Tracinda Corporation would own 120 million shares of Ford common stock, amounting to 5.6 per cent of the total.

The announcement of the completed acquisition sent the American carmaker's shares up 8 per cent in pre-market trading.
Kerkorian's Ford purchase has come following failed efforts to buy Chrysler last year. In November 2006 he cut his stake in General Motors from 10 per cent to just over 7 per cent having failed to force the carmaker into an alliance with Renault Nissan.
It also comes after Ford's unexpectedly strong first quarter results announced last week, achieved despite the difficult economic situation in the US.
While there has been no indication that Kerkorian has met with Ford management or its board, Tracinda has indicated its support of the carmaker's current strategy to cut its American capacity and globalise operations.

DATED: 29.04.08

FEED: MT

The revelation that billionaire investor Jack Petchey has built up a 13 per cent stake in Pendragon is unlikely to signal a major shake-up of the UK’s largest dealer group, according to a financial analyst.
Mike Allen, from stockbroker Panmure Gordon, said Petchey was likely to have considered Pendragon's shares undervalued and to have increased his stake in the group as a long term investment.
Pendragon's market value has dropped by 75 per cent in the last year.
Allen described Petchey as an “activist shareholder” who would look at Pendragon as a “value opportunity”.
“He has a longer term investment horizon than other investors,” said Allen. “Most will not want to get caught in another downgrade.”

DATED: 29.04.08

FEED: MT

Japanese investor adds Norton Way site to its portfolio
Marubeni Auto Investment has acquired Norton Way Motors – its third major dealer group acquisition in the UK.
Norton Way Motors consists of two Honda centres and Peugeot and Mazda sites in the south east.
Marubeni bought the Radcliffe Road Garage Group, ranked 29 in the Motor Trader Top 200, in 2000 and the Japanese franchises of the Smith Knight Fay Group in 2006.

When the Japanese group acquired the RRG Group, Akira Tanaka, then chairman, told Motor Trader: “The exciting new partnership will ensure continued growth for the RRG Group and will provide Marubeni with a strong bridge-head in the UK motor retail market.”
Marubeni acquired Smith Knight Fay from European Motor Holdings, which had purchased the group in 2005.

DATED: 29.04.08

FEED: MT

Credit crunch reaches the automotive sector
BMW has said it will take a €236m (£186m) hit in increased bank charges in the first quarter of 2008 due to the impact of the international credit crunch.
The manufacturer blamed slow sales in the US and said a drop in pre-owned car sales prices had reduced the revenues that could be generated on vehicles at the end of lease contracts.

It was therefore necessary, the carmaker said, to recognise a higher risk provision for lease vehicles as well as the increased level of bad debts and payment arrears.
BMW remained optimistic, however, saying it still expects to post a higher pre-tax profit in 2008. In 2007 BMW posted pre-tax profits of €3.87bn.

DATED: 29.04.08

FEED: MT

Luxury brand to take up residence in London
Ferrari has unveiled plans that will see the luxury brand open its first store in the UK.
The new shop will be located on Regent Street in London and will be managed by Italian retailer the Percassi Group.

Work is due to start within the next few days and the shop is due to open in autumn, stocking a range of prancing horse branded goods.
There are currently 20 Ferrari outlets worldwide, including shops in the Middle East, Europe and the US.

DATED: 29.04.08

FEED: MT

Norton Way Motors has been bought by Marubeni Auto Investment, the Japan-based parent company of RRG Group.
It is Marubeni's third acquisition in the UK, since buying RRG Group in 2000 and Smith Knight Fay in 2006. It takes its turnover to £420 million.
The acquisition of Norton Way adds one Peugeot, one Mazda and two Honda dealerships to RRG's operation. Norton Way's Chiswick Honda site was the UK's first Honda brand centre, selling its full range of cars, motorcycles, garden equipment and tools.

DATED: 29.04.08

FEED: AM

British Car Auctions (BCA) has reopened for business in Tewkesbury, following the temporary closure last year as a result of severe flood damage.
The centre, located in Northgate Lane, was closed for seven months while repairs and refurbishment took place.
The money from the first car sold after reopening was donated by BCA to raise money for the local community flood relief fund.
Simon Henstock, BCA’s UK network operations director, said: "While we are delighted to have our Tewkesbury centre back in business, we are acutely aware that many residents are not so lucky and have yet to return to their homes.
"We think it appropriate that the first car we sell is donated by us with all the proceeds going to those local charities who have provided essential help to local residents following the floods."

DATED: 29.04.08

FEED: AM