F&I Management & Training

Volkswagen UK has confirmed rumours that Simon Elliott has resigned as Chrysler UK MD to head its Commercial Vehicles division.
It was revealed yesterday that Elliott had resigned as managing director of Chrysler UK only six months after returning to the role..
The manufacturer said he was leaving to "pursue other interests", but did not comment about his new position.
Volkswagen will release an official statement this afternoon with more information about Elliott's appointment.

DATED: 25.07.08

FEED: AM

Supermarket giant Tesco has launched warranty plans for owners of used cars.
The Tesco Car Warranty plans allow customers to protect their cars and pockets for as little as £9.90 a month.
Providing the car is under 10 years old and has less than 100,000 miles on the clock, the warranty plans will cover it.
According to Tesco Personal Finance, the plans could offer relief for the motorists who are putting off buying a new car until the economy settles.
Its research revealed that more than half of drivers questioned intend to keep their vehicle for longer than previously thought, with more than a third saying they would be keeping their vehicle for an extra two years.

DATED: 25.07.08

FEED: AM

SsangYong has launched a contract hire operation just weeks after introducing an approved used car programme.
The two moves are designed to give franchised dealers more tools to increase business and come as SsangYong ramps up efforts to expand its network. It is looking to add 40 dealers this year to take its network to 60.
Paul Williams, managing director of Koelliker UK, SsangYong’s importer and distributor, said: “Contract hire is a huge chunk of the market.
"If you want to compete in the UK, you have to have an offer.”
Siemens Motor Contracts, the contract hire division of Siemens Financial Services, will provide the finance support enabling dealers to target business users, from sole traders to large fleets.
For Siemens, the contract is its second in the automotive market, having already been signed up by Kia.
“We are attacking the market in a joined up and professional manner. We are set up for a sustainable long-term business,” Williams said.
Since his appointment in January, Williams has adjusted model prices, bringing them in line with market expectations.
He has also revised specification levels, repositioned models, negotiated new commercial terms, launched a new website for the manufacturer and its dealers, and reduced parts prices by 40% to help cut the cost of ownership.
“If you look at what we are doing, it’s in a scale and manner that is far ahead of our current sales levels. We now have the right ingredients,” he said.
SsangYong sales fell last year to 1,300 from just over 2,000 in 2006 but Williams is confident of returning to 2,000 this year, despite having a smaller retail network.
He added: “The quality of business we are doing now is giving good margins for dealers; we just don’t have high enough volumes.”
With SsangYong announcing 20 new models by 2014, and the UK likely to take “at least half” of them, dealers will have plenty of opportunity to grow their sales beyond their core SUV and MPV business.

DATED: 25.07.08

FEED: AM

Hot on the heels of the visit by Rt Hon Gordon Brown to the British International Motor Show where he was one of the first to see the array of environmentally friendly new cars on offer, comes further evidence demonstrating the industry's commitment to provide a range of solutions to tackle climate change. The simplest way for consumers to compare the carbon footprint of new cars is by looking at the colour-coded label1 on display in the showroom. The energy-style colour banding, as used on 'white goods' such as fridges was introduced by the motor industry on a voluntary basis in 1995 and is now a familiar sight in dealerships up and down the country. The results of a survey carried out in June by the Low Carbon Vehicle Partnership were today announced at a conference held at the Show when it was revealed that the label was being used in 93% of car dealerships. "There is no mystery surrounding new car CO2 tailpipe emissions - quite simply, low carbon cars use less fuel. There is a simple link between lower emissions and lower running costs," said Paul Everitt, SMMT chief executive. "The colour-coded label on display at the point of sale represents the simplest method of giving consumers the information needed to make a lower carbon choice." Environmental information based on official independent simulated test results is detailed on the label, displaying the link between fuel consumption and CO2 emissions. Speaking from the Show where he presented at the LowCVP event, Paul Everitt said "The motor industry is the most honest and transparent sector when it comes to reporting environmental performance and we have cut average new car tailpipe CO2 by more than 13% in the last decade and over the first half of 2008 it has fallen by a further 3%. There have been a number of new technology cars launched here at ExCeL London, so quite clearly, lower carbon cars are becoming commonplace."

DATED: 25.07.08

FEED: AW

General Motors has offered Prime Minister Gordon Brown a deal to support the sale of its low emission hybrid car in Europe and the company will build the vehicles in the UK. Mr Brown visited the British International Motor Show on Tuesday (July 22) and at the event, which is being held at London's ExCel until August 3, held talks with motor industry bosses and representatives of electricity generating companies. During his visit he set out the Government's plans to kick-start a motoring revolution by driving the shift to low-carbon and electric cars in the the UK. He particularly wants to see barriers in the planning system to be removed to enable an electric charging network to be set up as quickly as possible. At the meeting Carl-Peter Forster, the president of General Motors Europe, called on the Prime Minister to support production of the company's Flexstream hybrid and the manufacturer would ensure it rolled off the production line at Vauxhall's Ellesmere Port plant. The electric vehicle revolution could see up to 30,000 models produced by 2012 rising to around 220,000 by 2015 as demand increases making the Uk the electric car capital of Europe. The car uses a main rechargeable lithium-ion battery with a small biofuel motor to charge the battery. GM wants the Government to support its plan for a 'super credit' for the 'greenest' vehicles which could be earned in return for meeting new European emission and fuel consumption targets. The plug-in hybrid is expected to go on sale in Europe in 2011 and cost around £20,000.

DATED: 25.07.08

FEED: AW

When the London motor show opens to the public, Vauxhall's Vectra-replacement may not top many people's list of must-see cars. Yet for those working in the automotive industry, the Insignia is crucial. "In terms of new model launches, the most important by far [at this show] is the world debut of the new Insignia," observes Rebecca Wright, automotive industry analyst with Global Insight. Insignia is entering a shrinking market segment, currently dominated by the Ford Mondeo. Sales of such "ordinary" family saloons have come down dramatically in the last decade as drivers have switched to people carriers, sports utility vehicles and crossovers - models that are themselves falling out of favour with consumers as high fuel prices and concerns about emissions push drivers towards smaller cars.

DATED: 25.07.08

FEED: AW

Simon Elliott has resigned as managing director of Chrysler UK after only returning to the role in January.
Chrysler said Elliott was leaving the company "to pursue other interests", the company is now in the process of naming a successor.
AM understands that Elliott is joining Volkswagen Group, possibly to head its Commercial Vehicles operation, and has asked Volkswagen for confirmation.
Elliott previously left as Chrysler UK MD in March 2006 to become CEO of Chrysler’s Chinese operations, but returned at the start of this year to help restore the American brand’s relations with its dealer network.
In the Winter 2007/8 National Franchised Dealers Association Dealer Attitude Survey, Chrysler was cast adrift at the bottom with an overall rating of 1.8 out of 10 – the worst ever score in the survey’s history.
Chrysler LLC Executive Vice President International Sales Mike Manley said: "Our business in the UK has grown well this year despite challenging market conditions.
"This growth is a credit to all of our employees in our UK sales organisation and the dedication of our dealers.
"This underlines the continued importance of the UK market to our international business.
"We would like to thank Simon and our UK employees for their contribution to this growth and we wish Simon well in his future endeavours.

DATED: 25.07.08

FEED: AM

UK managing director of EurotaxGlass's, Deven Thakrar, has stepped down for personal reasons.
The company confirmed that David Burdett was appointed interim managing director as of July 1 following Thakrar's decision to step down.
A permanent successor is being sought. Burdett worked alongside Thakrar as interim sales director from April 2007 to January 2008.
Thakrar has been with EurotaxGlass's since January 2007, and will leave after a three month transition period.

DATED: 25.07.08

FEED: AM

Toyota is looking set to become the world's biggest carmaker this year, after outselling General Motors by nearly 300,000 units.
GM, which has held the top spot for 77 years, saw a 5% drop in sales to 2.41m units in the last three months against Toyota's 1.8% rise.
At the end of June, Toyota had sold 2.4m vehicles, 278,000 more than its American rival.
With Toyota only 3,100 units behind GM at the end of 2007, analysts are predicting the Japanese manufacturer could take top place by the end of 2008.
Spiralling fuel prices have hit GM's sales hard, particularly in the US where sales were down a fifth in the second quarter as buyers deserted larger vehicles in favour of more economical replacements.
Toyota also recently announced it would begin production of its popular Prius hybrid in north America in 2010, aimed at meeting the surge in demand.

DATED: 25.07.08

FEED: AM

The first Chinese cars have quietly sneaked into the British Motor Show at Excel - in fact silently, as they’re electric cars.
Two of the pioneering green car distributors that took large display areas at Excel both had electric conversions of Chinese-built city cars on their stands.
Quiet Car Company, based in Lymington, showed a battery-electric conversion of the Chinese Hafei Lobo five-door hatchback.
Priced at £12,995, the Pininfarina-styled Quiet Car 2 has Lithium batteries offering a range of around 65 miles on a five-hour charge.
Top speed is only 50mph, but QCC claims 100 miles of driving will add just £1 to owners' household electricity bill.
It has opened order books, with deliveries to start around October or November.
NICE Car Company – whose name stands for No Internal Combustion Engine – premiered its own Chinese-made five-door hatchback electric vehicle, the Ze-O.
Bertone-styled Ze-O is a version of the Changhe Ideal, a car introduced in China in 2006, with lead-acid batteries providing a 60-mile range and a 55mph top speed. Lithium-Ion versions with longer range will follow.
It’ll come to the UK before the year-end, said NICE, priced around £14,000.

DATED: 25.07.08

FEED: AM

Electric cars have received a boost with the news that re-charging points in London will treble over the next two years.
The Mayor of London Boris Johnson announced the plans along with a new electric vehicle partnership and the promise of better co-ordination between London boroughs on incentives.
Nice, the London-based electric car company welcomed the strategy: "Incentives that are clear, consistent and tangible are absolutely central to accelerating the take-up of all-electric cars,” said Evert Geurtsen, Nice co-founder.

DATED: 25.07.08

FEED: AM

The Competition Commission may ban point-of-sale Payment Protection Insurance (PPI) because, it says, people are overcharged by £1.4 billion a year due to a lack of competition.
Consumer groups have protested about PPIs for two years.
The Office of Fair Trading asked for the investigation.
The commission may impose temporary price limits on policies until prices come down.
HSBC and some other finance companies anticipated the report’s findings, and stopped offering PPIs before it was published.
The commission allowed responses until June 30.
Peter Davis, commission deputy chairman, said consumers were getting a raw deal.
Selling PPIs as an add-on meant distributors escaped competition pressure on price and quality and there was little direct advertising.

DATED: 23.07.08

FEED: AM

Brian Carte, Caffyns chairman, has said the future of the automotive retail market looks uncertain as the dealer group faces a tough year.
At Caffyns' AGM, Carte told shareholders 2008 was proving to be a difficult year: “The market for new cars continues to be under severe pressure, with new car registrations down by 2.5% since March.
“June, in particular, was a challenging month for national registrations within our main markets, with the private and small business user sectors declining by 14% when compared to the same month last year.”
Carte accredited the downturn to turmoil in the credit markets and the resultant decline in consumer confidence.
He said: “This decline in consumer activity, and consequent margin pressure, has resulted in a difficult trading environment for the first quarter of our financial year, conditions which are shared by our competitors in the sector.
“The outlook remains uncertain although we expect trading conditions to remain challenging. New car sales are expected to be generated by consumers deciding to downsize vehicles with lower CO2 emissions and lower vehicle excise duty rates.”
Caffyns’ share price has taken a nose dive since the start of March this year, falling from 840p to 545p today, giving the company a market capitalisation of £26.59 million.
Carte has also written to all shareholders today in response to the letter sent by shareholder activist, New Fortress Holdings.
Mark Bruce-Smith, who represents investment company New Fortress Holdings which owns 4.65% of Caffyns shares, wrote a letter calling for change to improve the business’s "dire performance".
Carte strongly refutes Bruce-Smith’s claims, saying Caffyn’s performance was “far from being dire, are unjustified and do not reflect the reality of the company's performance”.

DATED: 23.07.08

FEED: AM

Ford has released specification and pricing for the new Fiesta, which goes on sale in October.
The sports-styled Zetec is expected to be the best-selling variant, accounting for 35% of sales and priced from £10,995 or £12,595 for the range-topping Zetec S.
Ford is also introducing an Econetic variant, with claimed class-leading emissions of £98g/km and combined fuel consumption of 76.3mpg.
The Econetic is powered by a 1.6 litre diesel engine and costs £11,845, £300 less than the Volkswagen Polo Bluemotion 1, which is also road tax exempt.
Entry level Studio models are priced from £8,695, £155 cheaper than the previous model and but £900 more than the Vauxhall Corsa and £600 more than the mechanically similar Mazda2.
Mid range Style and Style+ trims add extra equipment and cost from £9,295 and £10,395 respectively, while the ‘luxury’ Titanium model starts at £12,095.

DATED: 23.07.08

FEED: AM

The first new model from Lotus in 13 years will be called the Evora.
The new car will be powered by a 278bhp 3.5-litre V6 and is tasked with attracting new customers to the Lotus brand.
It's now the biggest car in the Lotus range, with two seats in the front and two bucket seats in the rear.
There will be new derivatives planned for the future, including a convertible, which will be built at the Lotus plant in Hethel, Norfolk. Production will be limited to 2,000 cars a year.

DATED: 23.07.08

FEED: AM

Finance companies were changing their products before the Competition Commission last month published its damning report about payment protection insurance (PPI).
One proposal is banning PPIs at point of sale.
The Finance & Leasing Association (FLA) surveyed members in the spring, and found 80% had made at least one improvement. They also said they paid out on the same proportion of claims.
Around half said they had extended PPI cover by reducing waiting periods or paying benefits for longer, and reducing or relaxing exclusion clauses.
Around one in three FLA companies had lowered PPI prices or increased cover options (such as unbundling accident, sickness and unemployment).
About a quarter had changed the way they calculated refunds so customers received a higher amount, or removed or loosened pre-existing exclusions.
These measures go some way to answering the criticism levelled by the Competition Commission.
The FLA this week held a PPI conference in London to outline the commission’s findings and discuss its suggested remedies.
FLA director general Stephen Sklaroff said: “It is vital people continue to be able to protect themselves against changes in personal circumstances when taking out a loan.
“In setting out a menu of alternative options for further change, the commission has recognised that some of them risk adversely affecting consumers. Nothing should be done that impairs PPIs variety, uptake or availability.”
Richard Bostock, FLA senior policy adviser, said the market and economic circumstances had changed considerably since the commission started its investigation.
“PPI provides a vital safety net for borrowers.” he said.
“We agree with the commission’s objective of ensuring customers benefit from a transparent market and have information to make sensible lending decisions. Banning point-of-sale PPIs would leave some borrowers worse off.”
Fiona Hoyle has joined the FLA as head of consumer finance and anti-fraud from the Council of Property Search Organisations. She will lead the response to the PPI report.

DATED: 23.07.08

FEED: AM

Fall in defaults

Southern Finance believes a fall in payment defaults and vehicle repossessions over the past year is because of its commitment to manual underwriting, says managing director Miles Roberts. “These skills are coming to the fore in protecting our business,” he said. “They are also enabling us to lend to consumers who appear to be rejected by many direct consumer lenders and major finance houses.”

Rights issues backed

Royal Bank of Scotland says shareholders have agreed to buy 95% of the shares offered in a £12 billion rights issue. The bank, which announced a £5.9 billion write-down in April, adds that its results for the first six months of 2008 should be “satisfactory”. RBS releases its interim results on August 8.

Inflation proof

Service plan provider Emac is urging franchised dealers to demonstrate the value they can offer customers by selling inflation-proof programmes. Angela Barrow, sales and marketing director, said: “Increasing numbers of aftersales teams are seeing the value of service plans, keeping workshops busy and helping long-term retention.”

Extra incentives

Dealers should use “plummeting” new car sales to promote additional incentives because more people will be driving vehicles after manufacturer cover has expired, says Simon Tennyson, managing director of AA Warranty. “Protection for new and used cars puts customers’ minds at rest and provides additional income for dealers,” he added.

DATED: 22.07.08

FEED: AM

Carlyle Finance believes dealers are “the logical and best place for consumers to source car finance”, said chief executive officer Mark Standish.
He sees the Competition Commission report as encouraging, adding: “The move to increase pricing transparency will put dealer finance on a more even footing with other loan providers. It matches our desire to see that dealers are treated fairly.
“Over recent years some loan providers have used PPI sales to subsidise loan interest rates, creating artificially low headline rates.
“It is unclear if this practice will be allowed to continue. If it does there will be a requirement for more transparency so consumers will know the true cost of their loan.”
Standish said a ban on the sale of PPI at the point of sale would be draconian.
He said it would have a limited impact on dealers because many opted not to sell PPI.
He noted that the commission reported there was evidence to suggest the sale of PPI could be being used to subsidise personal loans offered by some providers.
Dealers could be competitive if all consumers are offered PPI with the product range well explained and priced and appropriate to their needs.
“Historically F&I was the fifth profit centre within motor retailing.
Recently that focus has increasingly been on finance and away from insurance,” he said.

DATED: 22.07.08

FEED: AM

Dealers are starting to win back point-of-sale finance revenue after years of decline because car buyers are finding it harder to get loans from direct lenders.
There was a 6% year-on-year increase in the 12 months to April to £12 billion, up from £11.3bn in April 2007, says the Finance & Leasing Association.
Point-of-sale funding now supports 49% of sales of new cars, up from 47%.
Paul Harrison, FLA head of motor finance, said: “Our members have equipped dealers with a wide range of products available only in showrooms to help consumers cope with current conditions. Point-of-sale products will prove invaluable for individuals and businesses in the months ahead.”
Doug Moody, FLA motor finance division chairman and a director of Mercedes-Benz Financial Services, said: “Point-of-sale finance has become more competitive over the past year, with secured finance enabling customers to enjoy more competitive terms than other forms of lending.”
Moody said one reason for the increase was finance products offering guarantees such as future values of vehicles that were not available elsewhere.
Dealers could also put together finance packages to meet all budgets.
“It is clear why consumers are increasingly switched-on to the benefits of point-of-sale finance,” he said.
But dealers will have to be wary of how they sell PPI and other insurances following the Competition Commission report.
The Financial Services Authority (FSA) has fined several banks, insurance companies and brokers for mis-selling PPI.
The British Bankers’ Association challenged the commission’s finding that PPI policies were too expensive.
Citizens Advice Bureau, which has described sale of PPI as a “protection racket”, disagreed. Policy director Teresa Perchard said the report confirmed its view that PPI was over expensive and often unsuitable.
“Lenders are ripping off, rather than looking after their customers,” she said.
Nick Starling, director of general insurance and health at the Association of British Insurers, acknowledged PPI problems but said changes needed time to bed in.
“The commission’s proposed remedies could destroy this market while facing economic uncertainty,” he said.
“It would be disastrous to leave many people unprotected to deal with unforeseen financial crisis. The market is changing and therefore should not be judged retrospectively.”

DATED: 22.07.08

FEED: AM

The car industry is gathering at the motor show in London this week to wow an audience subdued by a series of economic showers that are threatening to whip up a perfect storm. Falling house prices, coupled with soaring food and fuel prices as well as rising taxes and charges for drivers, have already resulted in a fall in car sales, down 6.1% last month when compared with June 2007. "This slowdown is not unexpected, but signals an increasingly tough retail environment," predicts Paul Everitt, chief executive of the car industry body SMMT. The carmakers are bracing themselves for worse to come by preparing to defend or even grow their market shares, rather than by targeting overall sales growth. At the London show, the mantra will be low emissions. There will be a dedicated electric vehicle village, and several carmakers will display cars emitting less than the 140g/km target that the industry set itself a decade ago.

DATED: 22.07.08

FEED: AW

Almost two thirds of motorists have decided to delay changing their car because of the credit crunch. The online survey revealed that 69.8% of drivers had decided to delay replacing their car because of the financial uncertainty caused by the continuing credit crunch. Over 4,500 people participated in the poll, as more and more people turn to its finance packages instead of traditional lenders to fund the purchase of a new or nearly new car.

DATED: 22.07.08

FEED: AW

Cost-cutting car owners are regularly running out of fuel as they try to economise with fuel prices at record levels, according to a survey by breakdown company Britannia Rescue. Many motorists are 'driving on empty' with 20% saying they can no longer afford to fill their tank right up, claims the survey. In the last three months, 340,000 drivers have suffered a breakdown due to running out of fuel - 10% more than the same period last year. Single parents and young professionals are the ones most likely to avoid completely filling up at the pumps, while in the last three months 59% of drivers have allowed their fuel level to fall so low the warning light has come on. Around a quarter of the 1,467 drivers polled said they drove their car on hardly any fuel at least once a month and 8% admitted driving close to empty all the time. Few drivers appeared to have any idea how much fuel it took to run their car, with only 4% correctly estimating that the average car could drive 100-110 miles on £10 worth of fuel. Also, 21% said they no longer used the car's air conditioning in an effort to save fuel and 38% were driving more slowly. A Britannia Rescue spokeswoman said: "While it is now more costly to fill up at the pumps, running a car on empty can damage a car's fuel pump - requiring repairs that will make a full tank seem like a bargain. "Drivers who run their car on empty are also at high risk of breaking down. Not only is this extremely costly if you don't have breakdown cover and also very inconvenient, running out of fuel on the roads that don't have a hard shoulder can create major safety hazards for other drivers."

DATED: 22.07.08

FEED: AW

Sales lag 2 per cent behind at halfway point
European new car registrations slumped 7.9 per cent last month year-on-year, according to Acea.
The fall was in stark contrast to sales in April, which rose 9.6 per cent year-on-year.

The market has taken a downturn since May, however when sales dropped 7.8 per cent.
Over the first half of the year sales were down 2 per cent on the same period in 2007.“Rising inflation and soaring fuel prices were among the main factors influencing new registrations,” said Acea.
In the big five markets France and Germany bucked the trend in June, rising by 1.5 per cent and 1 per cent, respectively.
The UK, however, was down 6.1 per cent, while Italy and Spain endured eye watering slumps of 19.5 per cent and 30.8 per cent respectively.
Across Europe, 1,427,008 new cars were registered in June.

DATED: 21.07.08

FEED: MT

Milestone achieved seven years after production re-starts
Mini has exported one million cars from its Oxford plant since production began in 2001.
The carmaker said that the milestone was achieved this week, helped by strong sales overseas and the expansion of its model range.

Over 80 per cent of the British-built cars are exported to almost 80 countries worldwide with the largest export market being the USA.
The one millionth Mini rolled off the production line in April last year – six years after manufacturing of the new model recommenced in Oxford.
The plant employs 4,700 staff who work a three shift pattern producing up to 800 cars a day, seven days a week.
An additional 2,100 employees work at the pressing plant in Swindon and the engine plant in Hams Hall near Birmingham.

DATED; 21.07.08

FEED: MT

Advertising needs to be more closely regulated
Stricter regulations should be applied to advertising a car’s green credentials, according to a new survey.
NICE Car Company said Britons are confused when it comes to green claims by the automotive industry.

Claims like “low carbon car” were considered unclear, with 78 per cent of customers saying this was confusing.
While 82 per cent of owners have no idea how much CO2 their car emits, 87 per cent said they wanted more control on green claims in advertising.
“We’re not surprised by the results,” said Julian Wilford, co-founder of NICE.
“Green advertising claims are a bit of a free-for-all at the moment.
“Add a bewildering array of manufacturers’ environmental programmes branded eco-this and blue-that and you have a cocktail for confusion.
“Consumers need more consistent information.”

DATED: 21.07.08

FEED: MT