Tuesday, May 27, 2008
Seat expands into three new market segments
Seat will be entering into three new market segments starting with a new saloon model next year in order to meet its expansion plans.
First up will be a new saloon car based on the outgoing Audi A4 platform which will rival Renault’s Laguna and Peugeot’s 407.
This as yet unnamed car will be revealed towards the end of the year and go on sale in the UK in early 2009 as both a saloon and estate.
Seat will also develop its own version of VW's Up! city car and is close to making a decision on whether to put the Tribu concept, unveiled at the Frankfurt show in 2007, into production.
This will be a rival to the Ford Kuga, Toyota RAV4 and Honda CR-V and share features with Volkswagen’s recently-launched Tiguan.
Frank Bekemier, Seat vice president of research and development, said: "We have to reduce our reliance on Ibiza and Leon.
"We have to be able to offer our customers more so that they will come back to us."
The Ibiza and Leon currently account for 70% of total Seat sales.
Doubling global sales will also mean expanding to new countries. Seat recently launched in Mexico and is now close to launching across South America.
It is also considering launching into the rapid growth market of Russia where it can share synergies with VW and is currently in talks over a possible move into China.
DATED: 27.05.08
FEED: AM
First up will be a new saloon car based on the outgoing Audi A4 platform which will rival Renault’s Laguna and Peugeot’s 407.
This as yet unnamed car will be revealed towards the end of the year and go on sale in the UK in early 2009 as both a saloon and estate.
Seat will also develop its own version of VW's Up! city car and is close to making a decision on whether to put the Tribu concept, unveiled at the Frankfurt show in 2007, into production.
This will be a rival to the Ford Kuga, Toyota RAV4 and Honda CR-V and share features with Volkswagen’s recently-launched Tiguan.
Frank Bekemier, Seat vice president of research and development, said: "We have to reduce our reliance on Ibiza and Leon.
"We have to be able to offer our customers more so that they will come back to us."
The Ibiza and Leon currently account for 70% of total Seat sales.
Doubling global sales will also mean expanding to new countries. Seat recently launched in Mexico and is now close to launching across South America.
It is also considering launching into the rapid growth market of Russia where it can share synergies with VW and is currently in talks over a possible move into China.
DATED: 27.05.08
FEED: AM
New consumer law now in effect
A new UK law to protect consumers against rogue traders and bogus bargain prices came into force this week. It puts a duty on all businesses not to trade unfairly, and will be policed by Trading Standards, which will prosecute offenders. The new legislation outlaws information which, even if it is factually correct, deceives the average consumer into making a transaction he or she would not have taken otherwise. It also puts a duty on businesses not to conduct aggressive sales practices, such as harassment, coercion and undue influence.
It stops retailers advertising products knowing there is insufficient stock to meet demand and falsely claiming customers would get a better deal if they sign immediately.
In all, 31 specific practices will be banned. However, the rules do not extend so far as allowing disgruntled customers to claim compensation when businesses treat them unfairly.
DATED: 27.05.08
FEED: AM
It stops retailers advertising products knowing there is insufficient stock to meet demand and falsely claiming customers would get a better deal if they sign immediately.
In all, 31 specific practices will be banned. However, the rules do not extend so far as allowing disgruntled customers to claim compensation when businesses treat them unfairly.
DATED: 27.05.08
FEED: AM
Car dealers stand to lose control if BER is dropped
Question mark over EU rules as industry considers de-regulation
Car dealers in the UK could be thrown into disarray if the EU decides not to renew the Block Exemption Regulations in 2010. The likelihood of the rules being abandoned are gaining credence with Sid Hopper, automotive partner at BDO Stoy Hayward, the accountancy firm, warning tah some dealers may start to feel exposed.
“A number of dealers fear that the 2010 BER might be totally removed, altering the balance of power between manufacturer and dealer,” he said. “This is a real threat to dealers who do not find favour with the manufacturers.” He said prices charged to car buyers were the main criteria being used by European lawmakers and they considered the impact on dealers of abandoning the BER as largely irrelevant. Hopper predicted that some big dealer groups will be forced to reduce regional representation of certain brands, and weaker players will be weeded out.
“Basically the EU wants to deregulate competition law -- in other industries manufacturers are able to control their distribution networks.”
He believes post-2010 car retailing could follow a similar pattern, which would mean carmakers holding more sway over who sold their products and how. Professor Peter Cooke, Buckingham University’s professor of automotive management, also believes the BER are on borrowed time.
“Manufacturers have always found ways of re-tightening the screws. I wonder if Brussels is fed up with that and is just going to say ‘enough is enough,’” he said. But RMIF NFDA director Sue Robinson insisted that despite draft papers being published this Wednesday, negotiations would continue. “The stable door isn’t closed. There is room for us to come back with submissions. The lobbying isn’t finished by a long chalk,” she said. If car retailing is de-regulated, Hopper warned manufacturers against loading dealers with fixed costs.
“When private groups and plcs make decisions to invest they look at manufacturers with good reputations, strong product ranges and good returns. Too much cost is unviable,” he said.
Hopper suggested that efficiently run smaller operations could benefit from picking up business in open points created by carmakers ditching existing dealers.
DATED: 27.05.08
FEED: MT
Car dealers in the UK could be thrown into disarray if the EU decides not to renew the Block Exemption Regulations in 2010. The likelihood of the rules being abandoned are gaining credence with Sid Hopper, automotive partner at BDO Stoy Hayward, the accountancy firm, warning tah some dealers may start to feel exposed.
“A number of dealers fear that the 2010 BER might be totally removed, altering the balance of power between manufacturer and dealer,” he said. “This is a real threat to dealers who do not find favour with the manufacturers.” He said prices charged to car buyers were the main criteria being used by European lawmakers and they considered the impact on dealers of abandoning the BER as largely irrelevant. Hopper predicted that some big dealer groups will be forced to reduce regional representation of certain brands, and weaker players will be weeded out.
“Basically the EU wants to deregulate competition law -- in other industries manufacturers are able to control their distribution networks.”
He believes post-2010 car retailing could follow a similar pattern, which would mean carmakers holding more sway over who sold their products and how. Professor Peter Cooke, Buckingham University’s professor of automotive management, also believes the BER are on borrowed time.
“Manufacturers have always found ways of re-tightening the screws. I wonder if Brussels is fed up with that and is just going to say ‘enough is enough,’” he said. But RMIF NFDA director Sue Robinson insisted that despite draft papers being published this Wednesday, negotiations would continue. “The stable door isn’t closed. There is room for us to come back with submissions. The lobbying isn’t finished by a long chalk,” she said. If car retailing is de-regulated, Hopper warned manufacturers against loading dealers with fixed costs.
“When private groups and plcs make decisions to invest they look at manufacturers with good reputations, strong product ranges and good returns. Too much cost is unviable,” he said.
Hopper suggested that efficiently run smaller operations could benefit from picking up business in open points created by carmakers ditching existing dealers.
DATED: 27.05.08
FEED: MT
MG Rover investigation costs reach £12.2m
Government releases latest figures but still has not set a deadline
The investigation into the collapse of MG Rover has taken three years and cost more than £12m, according to a Financial Times report.
The inquiry, which has no deadline for its conclusion, cost £12.2m to the end of April, the latest government figures show.
The cost includes £1.8m of VAT and more than £437,000 in “disbursements” that relate to expenses and other costs for the investigation team.
DATED: 27.05.08
FEED: MT
The investigation into the collapse of MG Rover has taken three years and cost more than £12m, according to a Financial Times report.
The inquiry, which has no deadline for its conclusion, cost £12.2m to the end of April, the latest government figures show.
The cost includes £1.8m of VAT and more than £437,000 in “disbursements” that relate to expenses and other costs for the investigation team.
DATED: 27.05.08
FEED: MT
