Friday, May 23, 2008
RMIF paid £62,500 to buy back Remit
Trade body pays small price to acquire fomer training arm
The RMIF paid just £62,500 to buy back a third of its former training arm Remit, which it sold for £25.5m a little over two years ago.
The trade body bought back the apprenticeship arm of Remit in April from the now defunct Carter & Carter but paid only a fraction of the fee it received, according to the administrators report on the failed training group.
The £25.44m profit has enabled the federation to clear the multi-million pound black hole in its pension fund and stabilise after a period of cut backs and job losses.
“This is a fantastic transaction said Rob Foulston, the newly-appointed Remit chief executive.
“Our priority now is the learners and making sure they are on track with their programmes.”
Following the collapse of Carter and Carter, Foulston said manufacturers had lost confidence in the apprenticeship process and that the RMIF would now look to restore their faith and consolidate the business.
Remit originally had 6,500 apprentices on its books when it was sold to Carter & Carter in May 2006 and Foulston said the immediate goal was to reach that target.
“There are manufacturers programme which we are not contracted with at the moment but we want to look at this in due course. We are not closing the doors on manufacturer businesses,” said Foulston.
“Our objective in the middle term is to get back to that 6,500 number and then to go on from there.”
Carter & Carter went into administration in March this year with financial liabilities totalling £159.4m.
DATED: 23.05.08
FEED: MT
The RMIF paid just £62,500 to buy back a third of its former training arm Remit, which it sold for £25.5m a little over two years ago.
The trade body bought back the apprenticeship arm of Remit in April from the now defunct Carter & Carter but paid only a fraction of the fee it received, according to the administrators report on the failed training group.
The £25.44m profit has enabled the federation to clear the multi-million pound black hole in its pension fund and stabilise after a period of cut backs and job losses.
“This is a fantastic transaction said Rob Foulston, the newly-appointed Remit chief executive.
“Our priority now is the learners and making sure they are on track with their programmes.”
Following the collapse of Carter and Carter, Foulston said manufacturers had lost confidence in the apprenticeship process and that the RMIF would now look to restore their faith and consolidate the business.
Remit originally had 6,500 apprentices on its books when it was sold to Carter & Carter in May 2006 and Foulston said the immediate goal was to reach that target.
“There are manufacturers programme which we are not contracted with at the moment but we want to look at this in due course. We are not closing the doors on manufacturer businesses,” said Foulston.
“Our objective in the middle term is to get back to that 6,500 number and then to go on from there.”
Carter & Carter went into administration in March this year with financial liabilities totalling £159.4m.
DATED: 23.05.08
FEED: MT
Peugeot to cut dealer network after review
Peugeot is to reduce its franchised dealer network from 295 outlets to “between 260-270” after completing a comprehensive review of its national sales structure.
Dealers being dropped by the franchise have been told verbally and will receive official confirmation by letter before the end of this month.
They include single sites and some outlets owned by larger groups.
Although Peugeot’s seven-year fixed sales contracts require the carmaker to give a one-year notice of termination, it is giving dealers two years’ grace, which takes the company up to the next Block Exemption Regulations in 2010.
Peugeot also has a number of dealers on two-year rolling contracts, also with two-year notices of termination.
Under BER 2002, manufacturers issuing fixed contracts had to give a minimum term of five years; therefore, since May 2005, Peugeot switched to rolling contracts to ensure all contracts ended in time for BER 2010.
DATED: 23.05.08
FEED: AM
Dealers being dropped by the franchise have been told verbally and will receive official confirmation by letter before the end of this month.
They include single sites and some outlets owned by larger groups.
Although Peugeot’s seven-year fixed sales contracts require the carmaker to give a one-year notice of termination, it is giving dealers two years’ grace, which takes the company up to the next Block Exemption Regulations in 2010.
Peugeot also has a number of dealers on two-year rolling contracts, also with two-year notices of termination.
Under BER 2002, manufacturers issuing fixed contracts had to give a minimum term of five years; therefore, since May 2005, Peugeot switched to rolling contracts to ensure all contracts ended in time for BER 2010.
DATED: 23.05.08
FEED: AM
Alliance gives new impetus to SkillAuto
The Institute of the Motor Industry (IMI) has taken on responsibility for SkillAuto, which identifies and supports entrants in competitions aimed at those beginning their automotive careers.
Lesley Upham, Thatcham communications director and chairman of the new SkillAuto Steering Committee, said: “This alliance with the IMI will bring continued success and new impetus to SkillAuto.
“With the resources of the IMI we can provide a focused set of competitions which reflect industry need and stretch our young competitors.”
The IMI said the addition of SkillAuto would help its plans to make a career in the sector attractive, while highlighting the world-class skill levels at which individuals now need to work at in the sector.
This would “reinforce their status as professional engineers and deliver long overdue status and respect”.
Candidates for the 2009 Worldskills in Canada are in the process of being selected through a series of regional heats, before finals take place in June.
In 2005, Andrew Blair won a gold medal in body repair in Helsinki and last year Jonathan Lloyd and Simon Noble each scooped a bronze medal in body repair and vehicle painting, respectively, in Japan, competing against finalists from 48 countries.
DATED: 23.05.08
FEED: AM
Lesley Upham, Thatcham communications director and chairman of the new SkillAuto Steering Committee, said: “This alliance with the IMI will bring continued success and new impetus to SkillAuto.
“With the resources of the IMI we can provide a focused set of competitions which reflect industry need and stretch our young competitors.”
The IMI said the addition of SkillAuto would help its plans to make a career in the sector attractive, while highlighting the world-class skill levels at which individuals now need to work at in the sector.
This would “reinforce their status as professional engineers and deliver long overdue status and respect”.
Candidates for the 2009 Worldskills in Canada are in the process of being selected through a series of regional heats, before finals take place in June.
In 2005, Andrew Blair won a gold medal in body repair in Helsinki and last year Jonathan Lloyd and Simon Noble each scooped a bronze medal in body repair and vehicle painting, respectively, in Japan, competing against finalists from 48 countries.
DATED: 23.05.08
FEED: AM
EU crackdown on used car dealers
Used car dealers should prepare for a clampdown on "unfair sales practice" as new EU consumer protection laws come into place on Monday. Introduced by the Department for Business, Enterprise and Regulatory Reform, will affect all European member state business but second-hand motor traders were singled out as one of the main targets.
The new rules will outright ban 31 specific practices which are all outlined in the report which can be downloaded by clicking here. The BERR has said it will put a stop to any "aggressive selling techniques". Any company which doesn't follow the new rules will be subject to "lengthy investigations from local trading standards".
Websites with advice on the new BERR rules have been set up for England, Scotland, Wales and Northern Ireland. In terms of the used car market, Experian predicts that the new directive is likely to put even more pressure on dealers to ensure precautions, such as vehicle provenance checks, are undertaken. Kirk Fletcher, managing director of Experian’s Automotive division, said: "The scope of the new directive is still unclear and open to interpretation, so the full impact on the automotive industry is yet to unfold. "However, we strongly recommend that dealers need to make sure that customers are provided, in a clear and transparent fashion, with all the information about a vehicle’s status. “This is especially vital at a time when there is increased media attention on protecting consumers from rogue dealers.”
DATED: 23.05.08
FEED: AM
The new rules will outright ban 31 specific practices which are all outlined in the report which can be downloaded by clicking here. The BERR has said it will put a stop to any "aggressive selling techniques". Any company which doesn't follow the new rules will be subject to "lengthy investigations from local trading standards".
Websites with advice on the new BERR rules have been set up for England, Scotland, Wales and Northern Ireland. In terms of the used car market, Experian predicts that the new directive is likely to put even more pressure on dealers to ensure precautions, such as vehicle provenance checks, are undertaken. Kirk Fletcher, managing director of Experian’s Automotive division, said: "The scope of the new directive is still unclear and open to interpretation, so the full impact on the automotive industry is yet to unfold. "However, we strongly recommend that dealers need to make sure that customers are provided, in a clear and transparent fashion, with all the information about a vehicle’s status. “This is especially vital at a time when there is increased media attention on protecting consumers from rogue dealers.”
DATED: 23.05.08
FEED: AM
Nissan outlines LCV growth
Nissan will launch 13 new light commercial vehicles before the end of 2012 in a bid to meet five-year global growth plans.
Carlos Ghosn, Nissan president and CEO, said he wanted LCV revenue to double by 2012 compared to 2007 and wanted top level customer satisfaction performance globally by 2012.
The targets will be helped by the start of Nissan LCV sales in growing markets like Russia, China and India which will start in 2010.
In the 2007 financial year Nissan sold 519,703 LCVs worldwide. The NP300 pickup truck (also sold as the Frontier in selected markets) was the best-selling individual Nissan LCV with 71,678 units.
China was the market with the largest portion of LCV sales (151,088 units) followed by Japan (121,790 units).
DATED: 23.05.08
FEED: AM
Carlos Ghosn, Nissan president and CEO, said he wanted LCV revenue to double by 2012 compared to 2007 and wanted top level customer satisfaction performance globally by 2012.
The targets will be helped by the start of Nissan LCV sales in growing markets like Russia, China and India which will start in 2010.
In the 2007 financial year Nissan sold 519,703 LCVs worldwide. The NP300 pickup truck (also sold as the Frontier in selected markets) was the best-selling individual Nissan LCV with 71,678 units.
China was the market with the largest portion of LCV sales (151,088 units) followed by Japan (121,790 units).
DATED: 23.05.08
FEED: AM
Soaring fuel prices push diesel towards £6 gallon
Drivers are having to cope with the fastest rise in diesel pump prices for a decade as the fuel crisis deepens impacting on businesses and private motorists. Latest figures from the AA show that the national average price for a litre of diesel has now reached 126p with a litre of petrol costing 113.7p - both all times. With a barrel of crude oil now at a record $130, further prices rises will filter through to the pumps in the coming weeks making the £6 gallon (131.9p a litre) a reality. AA data reveals that in recent weeks the price of diesel has risen at a faster rate than petrol. Between mid-April and mid-May, the average price of a litre of diesel rose 6.76p - the previous record rise occurred between October and November last year. Meanwhile, the average price of petrol rose 4.49p a litre over the same period. Diesel prices are also being driven higher relative to petrol because demand for diesel in Britain is rising, while that for petrol has been falling. Ironically, the rise in fuel prices has driven motorists into more fuel-efficient diesel models. As pump prices continue to rise, speculation is mounting that a new round of fuel price protests will start in London next week.
DATED: 23.05.08
FEED: AW
DATED: 23.05.08
FEED: AW
Car dealers set for EU clampdown
Used car sales to come under close scrutiny from next week
As EU consumer protection laws banning 31 ‘unfair sales practices’ become law next Monday, the Department for Business has singled out the used car trade as needing the reforms.
It claims bad practices are damaging customers’ perceptions of the industry, and singled it out when publicising the changes.
According to the DfB, 65 per cent of Britons think used car dealers ‘are likely’ to rip them off, a fifth felt pressured by salesmen into buying, and one in ten chose a car they would otherwise have left as a result.
The claims were made after 2,008 adults were surveyed for the department.
Now, some £7.5m will be spent by the UK government to train so called Trading Standards ‘scambuster’ teams who will identify illegal practices.
“Honest traders understand the value of treating customers fairly and they’ve had enough of losing profit to rivals using underhand tactics to get ahead,” said consumer affairs minister Gareth Thomas.
“The Consumer Protection Regulations will deliver better protection for consumers, cut red tape and put in place a simpler and clearer consumer law that will be easier to interpret and enforce,” he said.
The laws relate to businesses that trade directly with consumers, including used car dealers, mechanics and vehicle hire businesses.
DATED: 23.05.08
FEED: MT
As EU consumer protection laws banning 31 ‘unfair sales practices’ become law next Monday, the Department for Business has singled out the used car trade as needing the reforms.
It claims bad practices are damaging customers’ perceptions of the industry, and singled it out when publicising the changes.
According to the DfB, 65 per cent of Britons think used car dealers ‘are likely’ to rip them off, a fifth felt pressured by salesmen into buying, and one in ten chose a car they would otherwise have left as a result.
The claims were made after 2,008 adults were surveyed for the department.
Now, some £7.5m will be spent by the UK government to train so called Trading Standards ‘scambuster’ teams who will identify illegal practices.
“Honest traders understand the value of treating customers fairly and they’ve had enough of losing profit to rivals using underhand tactics to get ahead,” said consumer affairs minister Gareth Thomas.
“The Consumer Protection Regulations will deliver better protection for consumers, cut red tape and put in place a simpler and clearer consumer law that will be easier to interpret and enforce,” he said.
The laws relate to businesses that trade directly with consumers, including used car dealers, mechanics and vehicle hire businesses.
DATED: 23.05.08
FEED: MT
Lookers 'best investment opportunity'
22 May 2008
Dealer group produces best shareholder return over three years
Lookers has been named as the best investment opportunity in the car retail sector at a European awards ceremony.
The Manchester-based dealer group produced the highest total shareholder return over a three-year period and was recognised for the achievement at the 2008 European Automotive Shareholder Value Awards.
According to PricewaterhouseCoopers, the event organisers, European dealers underperformed in both the car sales and parts supply markets over the one and three-year periods.
The average retail business posted combined returns of -46 per cent over a year and a slight growth of 2 per cent over three years.
DATED: 23.05.08
FEED: MT
Dealer group produces best shareholder return over three years
Lookers has been named as the best investment opportunity in the car retail sector at a European awards ceremony.
The Manchester-based dealer group produced the highest total shareholder return over a three-year period and was recognised for the achievement at the 2008 European Automotive Shareholder Value Awards.
According to PricewaterhouseCoopers, the event organisers, European dealers underperformed in both the car sales and parts supply markets over the one and three-year periods.
The average retail business posted combined returns of -46 per cent over a year and a slight growth of 2 per cent over three years.
DATED: 23.05.08
FEED: MT
Audi to simplify its A3 range
Showroom pricing changes will come in August
Audi UK is reducing complexity in its new A3 range, due for introduction in August, to make showroom choice easier for customers and dealers alike.
The revised range will feature four reworked or all-new, petrol and two diesel engines, - but there will be fewer trim levels from which to choose. There will also be small price jumps up the scale.
Trim levels start with the Standard A3 through SE, Sport and Sportline.
Technical options include park assist - the car literally parks itself - at £750, and chassis performance equipment such as magnetic ride shock absorber control.
DATED: 23.05.08
FEED: MT
Audi UK is reducing complexity in its new A3 range, due for introduction in August, to make showroom choice easier for customers and dealers alike.
The revised range will feature four reworked or all-new, petrol and two diesel engines, - but there will be fewer trim levels from which to choose. There will also be small price jumps up the scale.
Trim levels start with the Standard A3 through SE, Sport and Sportline.
Technical options include park assist - the car literally parks itself - at £750, and chassis performance equipment such as magnetic ride shock absorber control.
DATED: 23.05.08
FEED: MT
Nearly a third of used cars sold with debt
HPI figures highlight worrying trend in market
As the so called credit crunch continues to squeeze vehicle sales the HPI vehicle checking service found that 30 out of 100 used cars it examined were subjects of outstanding finance agreements.
'The figures relate to the first three months of this year, and show a slight rise on the same period in 2007, when the figure was 28 out of 100 vehicles checked by the company.
Year-on-year HPI saw a rise in overall mileage quieries from five in every hundred to seven.
Issues relating to registration plate transfers, sometimes used to disguise a vehicle's identity, had risen from two in nine to one in four but concerns over condition remained static at four out of every hundred vehicles checked.
“At a time when the credit crunch is biting down on consumers across the UK, we are urging car buyers to be more cautious when purchasing a used vehicle,” said HPI automotive director Daniel Burgess.
DATED: 23.05.08
FEED: MT
As the so called credit crunch continues to squeeze vehicle sales the HPI vehicle checking service found that 30 out of 100 used cars it examined were subjects of outstanding finance agreements.
'The figures relate to the first three months of this year, and show a slight rise on the same period in 2007, when the figure was 28 out of 100 vehicles checked by the company.
Year-on-year HPI saw a rise in overall mileage quieries from five in every hundred to seven.
Issues relating to registration plate transfers, sometimes used to disguise a vehicle's identity, had risen from two in nine to one in four but concerns over condition remained static at four out of every hundred vehicles checked.
“At a time when the credit crunch is biting down on consumers across the UK, we are urging car buyers to be more cautious when purchasing a used vehicle,” said HPI automotive director Daniel Burgess.
DATED: 23.05.08
FEED: MT
Turning your back on FSA is not the answer
Selling insurance products has become more complicated.
Even before the economic downturn, FSA regulation has forced dealers to become accredited before selling these products in the showroom.
Pressure is mounting on employers to ensure staff are kept up to date, with fines being likely for those that don’t.
The Consumer Credit Act 1974 introduced a system of licensing for companies selling finance.
The legislation is aimed at protecting individuals borrowing up to £25,000, with appeals to be made to the Office of Fair Trading (OFT).
It also changed the rules on voluntary terminations, allowing buyers to hand back a vehicle bought on hire purchase and walk away from the deal, providing 50% of the value had been paid off.
The ruling was aimed at ensuring consumers were not trapped in bad deals.
But for motor finance, this could leave the finance company paying the remaining value of a vehicle which had depreciated to less than the amount paid off already.
The costs of voluntary terminations are substantial, estimated to be between £83 million and £91 million of a market worth £9.4 billion.
In 2003 the Finance and Leasing Authority (FLA) claimed the act was outdated and in need of a review.
After a three-year process, the law was updated with the Consumer Credit Act 2006 which came into force on April 6.
Aimed at creating a fairer, clearer and more competitive market for finance, this brings new legislation that will affect dealers.
The first changes in April 2007 introduced a financial ombudsman service as a first port of call for consumer complaints and tightened breaches of the 1974 act through incomplete documents.
But it is the second part of the legislation, which came into force last month, that will bring the biggest changes for motor finance.
Whereas the original act covered credit for purchases of up to £25,000, the 2006 amendment removes this restriction for all loans except those for businesses.
As a result, all credit transactions, including those over the original threshold, will now be regulated by the act.
DATED: 23.05.08
FEED: AM
Even before the economic downturn, FSA regulation has forced dealers to become accredited before selling these products in the showroom.
Pressure is mounting on employers to ensure staff are kept up to date, with fines being likely for those that don’t.
The Consumer Credit Act 1974 introduced a system of licensing for companies selling finance.
The legislation is aimed at protecting individuals borrowing up to £25,000, with appeals to be made to the Office of Fair Trading (OFT).
It also changed the rules on voluntary terminations, allowing buyers to hand back a vehicle bought on hire purchase and walk away from the deal, providing 50% of the value had been paid off.
The ruling was aimed at ensuring consumers were not trapped in bad deals.
But for motor finance, this could leave the finance company paying the remaining value of a vehicle which had depreciated to less than the amount paid off already.
The costs of voluntary terminations are substantial, estimated to be between £83 million and £91 million of a market worth £9.4 billion.
In 2003 the Finance and Leasing Authority (FLA) claimed the act was outdated and in need of a review.
After a three-year process, the law was updated with the Consumer Credit Act 2006 which came into force on April 6.
Aimed at creating a fairer, clearer and more competitive market for finance, this brings new legislation that will affect dealers.
The first changes in April 2007 introduced a financial ombudsman service as a first port of call for consumer complaints and tightened breaches of the 1974 act through incomplete documents.
But it is the second part of the legislation, which came into force last month, that will bring the biggest changes for motor finance.
Whereas the original act covered credit for purchases of up to £25,000, the 2006 amendment removes this restriction for all loans except those for businesses.
As a result, all credit transactions, including those over the original threshold, will now be regulated by the act.
DATED: 23.05.08
FEED: AM
Protection for PPI customers
The new Insurance Code of Business sourcebook (ICOBS) means small changes to the sales process for dealers, but these must be in place before July.
The FSA advises several steps for dealers selling insurance products in the meantime.
Customers buying PPI must now receive extra advice about claiming.
They should also be advised about the extended cooling-off period, and told to check the policy wording in that time.
Single premium PPI customers should be told about monthly and total price of the cover during the sales process.
Dealers who sell PPI and pure protection contracts, covering income protection and critical illness insurance, will have to fully inform customers about the price and level of cover offered.
Non-advised policies must be sold with clear information advising that the customer has sole responsibility for deciding whether it suits their needs.
DATED: 23.05.08
FEED: AM
The FSA advises several steps for dealers selling insurance products in the meantime.
Customers buying PPI must now receive extra advice about claiming.
They should also be advised about the extended cooling-off period, and told to check the policy wording in that time.
Single premium PPI customers should be told about monthly and total price of the cover during the sales process.
Dealers who sell PPI and pure protection contracts, covering income protection and critical illness insurance, will have to fully inform customers about the price and level of cover offered.
Non-advised policies must be sold with clear information advising that the customer has sole responsibility for deciding whether it suits their needs.
DATED: 23.05.08
FEED: AM
LDV expands in Grimsby
Grimsby Van Centre has invested £250,000 in its LDV dealership to redevelop and expand the site. The investment has led to expansion of the showroom and workshops to cater for the complete range of new LDV Maxus vehicles.
The dealership provides a specialist service for only used LDV light commercials vehicles plus extended servicing appointments and VANfit, a dedicated all-makes parts replacement service.
Allan McCartney, Grimsby Van Centre's managing director, said: "We are looking forward to growing our Maxus brand. "LDV has excellent warranty and ownership packages and provides excellent value for money. The Maxus range continues to expand which will now allow us to enter new markets locally."
DATED: 23.05.08
FEED: AM
The dealership provides a specialist service for only used LDV light commercials vehicles plus extended servicing appointments and VANfit, a dedicated all-makes parts replacement service.
Allan McCartney, Grimsby Van Centre's managing director, said: "We are looking forward to growing our Maxus brand. "LDV has excellent warranty and ownership packages and provides excellent value for money. The Maxus range continues to expand which will now allow us to enter new markets locally."
DATED: 23.05.08
FEED: AM
VW appoints marketing head for CV
Volkswagen Commercial Vehicles has appointed Steve Reynolds as its new head of marketing.
Reynolds already has over eight years experience within the Volkswagen Group, most recently in the position of business manager for new vehicle systems, and with Volkswagen passenger cars as head of aftersales and customer services.
He replaces Ralf Schueler who has left the Volkswagen Group after 13 years and is relocating to the Netherlands.
DATED: 23.05.08
FEED: AM
Reynolds already has over eight years experience within the Volkswagen Group, most recently in the position of business manager for new vehicle systems, and with Volkswagen passenger cars as head of aftersales and customer services.
He replaces Ralf Schueler who has left the Volkswagen Group after 13 years and is relocating to the Netherlands.
DATED: 23.05.08
FEED: AM
Wednesday, May 21, 2008
Honda targets dramatic rise in hybrid sales
Honda Motor today announced plans for a dramatic increase in the production of petrol-electric hybrid vehicles and said it would launch a hybrid-only model early next year. Japan's second-largest automaker said it expected to sell 500,000 hybrid cars annually beginning early in the next decade. Last year it sold slightly fewer than 52,000 units of its single hybrid model, a version of its Civic sedan that it has been selling since 2001. Honda is trying to catch up with rival Toyota, Japan's biggest carmaker, which has secured the global lead in low-emissions vehicles with its pioneering Prius hybrid, launched more than a decade ago. Toyota celebrated its millionth Prius sale in the first quarter of this year and has said it hopes to sell 1m hybrid cars annually sometime after 2010.
DATED: 21.05.08
FEED: AW
DATED: 21.05.08
FEED: AW
Pendragon expands in Yorkshire
Stratstone division acquires Mercedes-Benz outlet
Stratstone has increased its presence in Yorkshire with the opening of a second Mercedes-Benz dealership in Leeds.
Called Mercedes-Benz of North Leeds and based in the city’s Seacroft district, the operation will concentrate on used cars and aftersales provision, and is intended to compliment Stratstone’s existing Holbeck Smart and Mercedes operation.
Previously Stratstone ran a multi-franchise used vehicle operation at Seacroft, concentrating on high end marques such as Audi and BMW.
The switch to a Mercedes-only operation has seen the introduction of a parts sales department and five bay servicing facilities with manufacturer-approved diagnostic equipment.
“Those travelling into the city for work…can drop their car off in the morning and collect it at the end of the day,” said dealer principle Keith Weston. He added that a drive-to-work service would also be available.
The North Leeds operation will have some 75 approved used cars on site.
DATED: 21.05.08
FEED: MT
Stratstone has increased its presence in Yorkshire with the opening of a second Mercedes-Benz dealership in Leeds.
Called Mercedes-Benz of North Leeds and based in the city’s Seacroft district, the operation will concentrate on used cars and aftersales provision, and is intended to compliment Stratstone’s existing Holbeck Smart and Mercedes operation.
Previously Stratstone ran a multi-franchise used vehicle operation at Seacroft, concentrating on high end marques such as Audi and BMW.
The switch to a Mercedes-only operation has seen the introduction of a parts sales department and five bay servicing facilities with manufacturer-approved diagnostic equipment.
“Those travelling into the city for work…can drop their car off in the morning and collect it at the end of the day,” said dealer principle Keith Weston. He added that a drive-to-work service would also be available.
The North Leeds operation will have some 75 approved used cars on site.
DATED: 21.05.08
FEED: MT
AA claims brand names sell warranties
Car buyers more likely to buy well known products
Car buyers prefer well known brand names when choosing products such as warranties, according to a survey by AA Warranties.
It claims that independent traders in particular need the backing of well known names when trying to persuade customers to buy packages like GAP insurance.
Some 217 dealers were canvassed, with the motoring organisation claiming that its name was 'important' as a sales lever to 93 per cent of the non-franchised operations that took part in the study.
DATED: 21.05.08
FEED: MT
Car buyers prefer well known brand names when choosing products such as warranties, according to a survey by AA Warranties.
It claims that independent traders in particular need the backing of well known names when trying to persuade customers to buy packages like GAP insurance.
Some 217 dealers were canvassed, with the motoring organisation claiming that its name was 'important' as a sales lever to 93 per cent of the non-franchised operations that took part in the study.
DATED: 21.05.08
FEED: MT
Motor trade share price update
Sector is struggling but some companies put in good performance
Vertu Motors, Pendragon and Accident Exchange have boosted their share prices to bolster a flagging motor trade sector, according to a new report.
In its latest Stock Watch, Houlihan Lokey, financial analyst for the motor trade, said there was a cloud over the motor retail and servicing sector, but these firms did well in April through trading, buy-back plans and private investor support.
While Accident Exchange profited from former non-executive chairman Lord Young of Graffham investing around £300,000 in the group’s shares, Vertu Motors was boosted with the management decision to buy back 10 per cent of the company’s shares and Lloyds TSB’s move for additional shares in the group – building its stake from 3.08 per cent to 4.66 per cent.
Vertu also released prelims for the period ending 29 February, which look positive at 51p of net assets per share (after adjusting for goodwill) and strong cash generation.
DATED: 21.05.08
FEED: MT
Vertu Motors, Pendragon and Accident Exchange have boosted their share prices to bolster a flagging motor trade sector, according to a new report.
In its latest Stock Watch, Houlihan Lokey, financial analyst for the motor trade, said there was a cloud over the motor retail and servicing sector, but these firms did well in April through trading, buy-back plans and private investor support.
While Accident Exchange profited from former non-executive chairman Lord Young of Graffham investing around £300,000 in the group’s shares, Vertu Motors was boosted with the management decision to buy back 10 per cent of the company’s shares and Lloyds TSB’s move for additional shares in the group – building its stake from 3.08 per cent to 4.66 per cent.
Vertu also released prelims for the period ending 29 February, which look positive at 51p of net assets per share (after adjusting for goodwill) and strong cash generation.
DATED: 21.05.08
FEED: MT
Credit crunch brings dilemma to used car buyers
Worrying new research has revealed that outstanding finance is the biggest risk facing used car buyers today, with an alarming 30 out of every 100 cars checked by HPI still subject to an outstanding finance agreement. Leading vehicle information organisation HPI is warning car buyers that if they unwittingly buy a car on outstanding finance, there is a very real chance that they will lose both the car and the money they paid for it. Nick Lindsay, Director of HPI explains: "A vehicle on hire purchase or a lease agreement still technically belongs to the lender, and if that loan remains unpaid when an unwary consumer buys the car from the person who took out the loan, the lender has every right to take ownership of it. This obviously leaves the buyer substantially out of pocket. "At a time when the credit-crunch is biting down on consumers across the UK, we are urging car buyers to be more cautious when purchasing a used vehicle. Checking with us first will help buyers avoid this all too common problem, which is sadly on the increase." The findings from HPI further reveal that important information against 43 in every 100 cars it checks* could threaten a car's title, value or safety.
DATED: 21.05.08
FEED: AW
DATED: 21.05.08
FEED: AW
Tuesday, May 20, 2008
Ford may seek Volvo sale
LONDON (Thomson Financial) -- Ford Motor is cutting production at its Volvo unit to reduce costs and losses at the Swedish brand, the Wall Street Journal reported today.The production cut, which could affect one-third of workers at one of its two Volvo plants in Europe, comes amid speculation that Ford is priming Volvo for a sale.Ford has said publicly that it doesn't plan a sale, but CEO Alan Mulally has told top executives he wants to eventually seek a buyer for the Volvo brand, the newspaper said, citing people familiar with the matter.
Jerome B. York, who advises one of Ford's largest outside investors, Kirk Kerkorian, endorsed the idea of a sale earlier this month, saying he believed Volvo might be sold some time in the next 18 months, the newspaper reported. ...
DATED: 20.05.08
FEED: ANE
Jerome B. York, who advises one of Ford's largest outside investors, Kirk Kerkorian, endorsed the idea of a sale earlier this month, saying he believed Volvo might be sold some time in the next 18 months, the newspaper reported. ...
DATED: 20.05.08
FEED: ANE
GM holds European retailers summit
General Motors is bringing together all its 6,000 retailers from across Europe for the first time this month to share with them its plans and future key models over the next few years.
The move is intended to ensure retailers of GM’s seven brands – Vauxhall, Opel, Chevrolet, Saab, Cadillac, Corvette and Hummer – understand how its operations fit together, and the opportunities for them to dual- and multi-franchise.
GM will outline performance and future prospects of each brand.
Jonathan Browning, GM Europe’s vice-president of sales, marketing and aftersales who becomes GM’s VP of global sales and marketing on June 1, told AM: “We have to be sure our dealers understand the opportunities to grow with all of GM’s brands – with some brands in combination or all brands together.
“We will explain GM’s vision of growth and how the brands fit together, the products that will deliver growth and what is required from retailers.”
The meeting takes place in Cologne, Germany, on May 20-21. Retailers will be shown future products, including some models in the pipeline – it will be their first glimpse of the Vauxhall Insignia.
There will also be heritage displays for each brand to underline GM’s 100-year history.
DATED: 20.05.08
FEED: AM
The move is intended to ensure retailers of GM’s seven brands – Vauxhall, Opel, Chevrolet, Saab, Cadillac, Corvette and Hummer – understand how its operations fit together, and the opportunities for them to dual- and multi-franchise.
GM will outline performance and future prospects of each brand.
Jonathan Browning, GM Europe’s vice-president of sales, marketing and aftersales who becomes GM’s VP of global sales and marketing on June 1, told AM: “We have to be sure our dealers understand the opportunities to grow with all of GM’s brands – with some brands in combination or all brands together.
“We will explain GM’s vision of growth and how the brands fit together, the products that will deliver growth and what is required from retailers.”
The meeting takes place in Cologne, Germany, on May 20-21. Retailers will be shown future products, including some models in the pipeline – it will be their first glimpse of the Vauxhall Insignia.
There will also be heritage displays for each brand to underline GM’s 100-year history.
DATED: 20.05.08
FEED: AM
Independents lose Welcome finance option
Welcome Car Finance, a leading sub-prime car loan lender, has pulled funding from all of its independent dealerships to focus solely on its own outlets.
It is understood to have cut its ties with 300 to 400 used car dealers, leaving borrowers with poor credit ratings to choose between its 12 own-brand dealerships.
The move came as its stock exchange listed parent, Cattles Group, announced a £200 million rights issue to bolster its reserves.
A motor industry finance expert, who asked not to be named, told AM: “Quite major specialists who use Welcome, for example Carcraft, will really struggle.
I think quite a few of those specialist sub-prime dealers will cease to trade.
“Without access to money to lend, some will not be able to continue.
The only other major sub-prime lender left is British Credit Trust in Slough.
But it will not have enough money to go round everyone,” he said.
DATED: 20.05.08
FEED: AM
It is understood to have cut its ties with 300 to 400 used car dealers, leaving borrowers with poor credit ratings to choose between its 12 own-brand dealerships.
The move came as its stock exchange listed parent, Cattles Group, announced a £200 million rights issue to bolster its reserves.
A motor industry finance expert, who asked not to be named, told AM: “Quite major specialists who use Welcome, for example Carcraft, will really struggle.
I think quite a few of those specialist sub-prime dealers will cease to trade.
“Without access to money to lend, some will not be able to continue.
The only other major sub-prime lender left is British Credit Trust in Slough.
But it will not have enough money to go round everyone,” he said.
DATED: 20.05.08
FEED: AM
