Tuesday, July 01, 2008
Pendragon axes almost 500 staff
Redundancies confirmed as market slowdown hits dealer group
Pendragon, the UK’s largest car dealer group, has confirmed it has axed almost 500 staff.
The announcement, which was made this morning in the giant car dealer group's pre-closing statement to the stock exchange, follows weeks of industry speculation about potential redundancies.
The group said it expected a “continuing exposure” to further economic slowdown for the remainder of the year and that it had “taken action” to reduce its fixed cost base.
“The company has taken action to reduce its fixed cost base and has recently completed a redundancy programme resulting in just under 500 job losses,” said the statement.
“Together with other actions taken, this is designed to help limit the impact of these difficult and competitive trading conditions.”
DATED: 01.07.08
FEED: MT
Pendragon, the UK’s largest car dealer group, has confirmed it has axed almost 500 staff.
The announcement, which was made this morning in the giant car dealer group's pre-closing statement to the stock exchange, follows weeks of industry speculation about potential redundancies.
The group said it expected a “continuing exposure” to further economic slowdown for the remainder of the year and that it had “taken action” to reduce its fixed cost base.
“The company has taken action to reduce its fixed cost base and has recently completed a redundancy programme resulting in just under 500 job losses,” said the statement.
“Together with other actions taken, this is designed to help limit the impact of these difficult and competitive trading conditions.”
DATED: 01.07.08
FEED: MT
Nissan launches 24-hour car production
Night shifts start at the carmaker's Sunderland plant
Nissan launched round-the-clock production at its Sunderland plant last night.
A third night shift has been introduced that will see the factory produce cars 24-hours a day.
The new shift has created an additional 800 jobs at the plant and is in response to string demand for its Qashqai model. Nissan said Qashqai production would increase from 4,500 cars per week to 6,100 units once the third shift was running at full volume.
The Japanese carmaker is keen to increase the plant's capacity ahead of the launch of the new seven-seat Qashqai +2.
The larger vehicle will be officially unveiled at next month's London Motor Show and is set to go on sale across Europe in September.
DATED: 01.07.08
FEED: MT
Nissan launched round-the-clock production at its Sunderland plant last night.
A third night shift has been introduced that will see the factory produce cars 24-hours a day.
The new shift has created an additional 800 jobs at the plant and is in response to string demand for its Qashqai model. Nissan said Qashqai production would increase from 4,500 cars per week to 6,100 units once the third shift was running at full volume.
The Japanese carmaker is keen to increase the plant's capacity ahead of the launch of the new seven-seat Qashqai +2.
The larger vehicle will be officially unveiled at next month's London Motor Show and is set to go on sale across Europe in September.
DATED: 01.07.08
FEED: MT
Car dealer finance on the rise
PoS sales now fund almost half of private car deals
Point of sale finance now funds 49 per cent of all new private car sales, compared to 47 per cent in 2007, according to the Finance and Leasing Association.
FLA head of motor finance Paul Harrison said: “FLA statistics show point-of-sale motor finance has remained attractive to customers during current tight credit conditions.
“It has grown in popularity in 2008, as consumers are finding it more difficult to get credit elsewhere. Pos products will prove invaluable for individuals and businesses in the months ahead.”
Peter Cooke, professor of automotive management at the University of Buckingham, agreed, saying dealers could move this source of profit forward by focusing on used as well as new cars.
“Finance adverts at the moment primarily focus on new vehicles,” he said. “But I've always looked at it as a supply chain.
“If someone wants to buy a new car, chances are they already have a used car – so they need to realise the equity of that used car to fund the new vehicle.
“Dealers need to be able to ensure their buyers have access to funding, so it's going to be very important that used vehicles continue to be moved because of that release of equity.”
The FLA's figures showing an increase in PoS finance reflect a break in a trend, according to a forthcoming report to be published by Cooke and finance provider Black Horse.
Black Horse said the report highlighted a long-term drop in PoS finance sales over the ten years leading up to 2006 and concludes that the sector is currently at a crossroads.
According to Black Horse, from 1996 to 2006, new private car finance fell from 52 per cent of cars sold to 41 per cent.
Used car finance penetration, meanwhile, fell from 53 per cent to 30 per cent by 2006.
DATED: 01.07.08
FEED: MT
Point of sale finance now funds 49 per cent of all new private car sales, compared to 47 per cent in 2007, according to the Finance and Leasing Association.
FLA head of motor finance Paul Harrison said: “FLA statistics show point-of-sale motor finance has remained attractive to customers during current tight credit conditions.
“It has grown in popularity in 2008, as consumers are finding it more difficult to get credit elsewhere. Pos products will prove invaluable for individuals and businesses in the months ahead.”
Peter Cooke, professor of automotive management at the University of Buckingham, agreed, saying dealers could move this source of profit forward by focusing on used as well as new cars.
“Finance adverts at the moment primarily focus on new vehicles,” he said. “But I've always looked at it as a supply chain.
“If someone wants to buy a new car, chances are they already have a used car – so they need to realise the equity of that used car to fund the new vehicle.
“Dealers need to be able to ensure their buyers have access to funding, so it's going to be very important that used vehicles continue to be moved because of that release of equity.”
The FLA's figures showing an increase in PoS finance reflect a break in a trend, according to a forthcoming report to be published by Cooke and finance provider Black Horse.
Black Horse said the report highlighted a long-term drop in PoS finance sales over the ten years leading up to 2006 and concludes that the sector is currently at a crossroads.
According to Black Horse, from 1996 to 2006, new private car finance fell from 52 per cent of cars sold to 41 per cent.
Used car finance penetration, meanwhile, fell from 53 per cent to 30 per cent by 2006.
DATED: 01.07.08
FEED: MT
