F&I Management & Training

BMW has warned that deteriorating business conditions means it will miss its targets for 2008. The warning came as it reported pre-tax profits of 602m euros ($937m; £474m) in the three months to the end of June - 43.5% below the same period in 2007. The result was well below expectations and BMW shares fell by 7.9% in early trading in Frankfurt. BMW's warning follows Daimler's decision last week to cut its earnings guidance for the year. Shares in other European carmakers were hit by the news, with Volkswagen falling 3.1% and Renault down 3.4%. 'Another difficult year'"Business conditions for the automobile industry deteriorated sharply again in the second quarter due to further ongoing steep rises in oil and raw material prices, the weakness of the U.S. dollar, the impact of the international financial crisis and a weaker US economy," BMW said. And the carmaker said it was not particularly optimistic about next year either. "We assume that 2009 will be another difficult year full of challenges," said chief executive Norbert Reithofer. BMW's profits have also been depressed by one-off charges. It has made a 695m euro provision to cover financial risk, which includes current falls in the price of used cars, which reduces the amount that BMW can get for cars when they reach the end of lease deals. It also spent 107m euros on reducing staff numbers.

DATED: 01.08.08

FEED: AW

General Motors has reported a three month net loss of $15.5bn (£7.8bn) as North American sales fell by 20%. GM took a $3.3bn charge for buying out the contracts of 19,000 hourly workers who left at the end of June. It also wrote off $1.3bn because of reduced values of big, used cars, which cut the value of formerly leased cars owned by its financing unit, GMAC. Without one-off charges, GM lost $6.3bn compared with a net profit of $891m in the same period of 2007. It is the third biggest quarterly loss in the carmaker's history. On 15 July, GM announced the latest stage of its restructuring plans, which include laying off thousands of workers, speeding up the closure of truck and sports utility vehicle (SUV) plants, selling assets and suspending its dividend. GM is not the only company suffering from the state of the car market. Other firms suffering Earlier in the day, BMW warned that its profits for 2008 would be below forecasts and predicted a "difficult" 2009. Also on Friday, Nissan reported a 42.8% fall in its three month profits. Net profit fell to 52.80bn yen ($491m; £248m) between April and June, compared with 92.31bn in the same period of 2007. "In the face of the severe operating environment, Nissan remains resilient but cautious on the outlook for our industry," said chief executive Carlos Ghosn, who also runs Nissan's French partner Renault. Nissan said it was trying to limit the effects of the slowing US car market by raising prices, cutting jobs and reducing truck production.

DATED: 01.08.08

FEED: AW

Shanghai Automotive has said that assembly of MG cars has recommenced at Longbridge, in preparation for the brand's UK re-launch next month.
The Chinese carmaker, which owns the MG brand, hopes to build 700 units at the Birmingham factory by the end of the year.
Longbridge is the final assembly point for the TF, whose components are largely manufactured in China.
Its UK dealers are due to begin sales of the limited edition TF LE500 launch version next month.
Retailers were invited to Longbridge in mid-July to examine the car, which is priced £16,399. Only 500 units are being sold, before a wider range of TF variants goes on sale.
Click here to see the BBC’s video report on the new MG TF LE500 here.

DATED: 01.08.08

FEED: AM

General Motors is reportedly in talks with Indian 4x4 manufacturer Mahindra & Mahindra about selling its Hummer brand.
However Reuters quotes sources as saying Mahindra already has plans to launch its own pick-ups and SUVs into the US market.
The news agency said talks are continuing, but with limited interest from Mahindra. GM is also in discussions with vehicle manufacturers in Russia and China, it claims.

DATED: 01.08.08

FEED: AM

Almost half of franchised dealers say they are forced to regularly pre-register cars in order to meet manufacturers’ new car targets. It’s a figure that is likely to rise in the second half of the year as the market continues to falter in the face of rising fuel bills, higher car tax charges and the economic downturn.
Responding to a Sewells Information & Research survey carried out on behalf of AM, 219 of the 447 dealer respondents said they pre-registered cars last year and were continuing to do in 2008.
Most – 68% – pre-registered fewer than 49 vehicles last year; 20% pre-registered between 50-100 cars and just over 11% pre-registered more than 100 cars.
However, 94% of dealers believe that pre-registering is bad for the industry. It ties up money in stock that they would not choose to buy and creates an imbalance of cars that is too heavily weighted towards nearly-new.
This prevents dealers from sourcing the two-year-old cars that the market wants and that offer greater profit margins.
Adrian Rushmore, managing editor of Glass’s Guide, said: “Nearly-new is the most competitive sector because everyone has got them.”
Many of these cars end up on car supermarket forecourts or internet websites often advertised at prices that undercut franchised dealers.
Asked which manufacturers are most active in the pre-registered market, dealers named Vauxhall top, with 15% of respondents claiming it was the worst culprit.
Two French manufacturers were next – Renault (10%) and Peugeot (9.2%) – followed by Fiat (7.2%). BMW is a surprise fifth on 6.4%, way ahead of premium rivals Mercedes-Benz (2.8%) and Audi (1.2%).
Industry insiders also point to Ford and Volkswagen with one adding: “Just do a search on Auto Trader for sub-six-month stock and you’ll see who’s doing all the pre-registrations.”
Pre-registering has long been seen as the real driver of new car sales figures which makes a mockery of the Society of Motor Manufacturers and Traders’ monthly figures. Estimates on cars ‘sold’ in this way range from 200,000 to almost 400,000 – almost 17% of last year’s 2.4 million new car market.
According to CAP figures, almost 400,000 cars under six months old were sold last year. Even taking into consideration dealer demonstrators and manufacturer company vehicles, it’s a sizeable chunk of the market that is primarily pre-registered, according to CAP operational development manager Mark Norman. “This stock is competing with dealers’ new stock and it’s Catch 22,” he added. “If the price gap isn’t big enough between new and nearly-new then people will naturally buy the new car; if the gap is too big then it will affect depreciation.”
Norman expects the situation to worsen because carmakers have already ordered their stock for the year. “We are in an oversupply situation. Until the manufacturers can turn off the tap, it won’t improve,” he added.
It’s a view shared by his counterpart at Glass’s. Rushmore believes dealers are “at breaking point”. “I don’t think they can take much more,” he said. “The market conditions will become progressively more difficult as we go through the year and manufacturers have got to recognise the pressures that dealers are under and support them.”
Rushmore puts much of the blame for pre-registering cars on the volume-based bonus structure. “It puts dealers in a corner and forces them to pre-register. They take the bonus, but they also take the pain,” he said.

DATED: 01.08.08

FEED: AM

Network concerned over falling sales and investment levels after boss resigns
Chrysler Group dealers have been thrown into disarray following the sudden resignation of managing director Simon Elliott and his subsequent appointment as director of Volkswagen’s commercial vehicles operation.
Elliott returned to head up and restructure UK operations at the beginning of the year after managing the brand’s Chinese operations.

'Sales fell during the first six months of the year with Chrysler dropping by 14 per cent while Jeep sales slipped 11.7 per cent.
Sales in June, the most recent month for SMMT figures, showed Jeep tumbling 50.4 per cent to just 357 units, while Chrysler dropped 28 per cent to 739 units.
In the same period the fledgling Dodge brand saw volumes rise by 73 per cent, but from a low starting point, with year to date sales totalling 3,038 units.
John Rudney, owner and managing director of Horsham Car Centre, one of the UK’s few solus Chrysler Group sites, said he was saddened by Elliott’s exit as he believed he had the “experience and passion” to turn around the business.
“I really regret that he’s gone as I had high hopes for him and I trusted the guy. I am concerned about the future for the franchise.
"It needs someone who can take leadership and secure huge amounts of investment from the US,” he said.
The Chrysler Group was formed last November following the demerger of DamilerChrysler, with the new operation 80 per cent owned by Cerberus, the US private equity firm.
Since then the newly independent operation has been badly hit by the downturn of the US car market.
One dealer who contracted Motor Trader, but wished to remain anonymous, said the departure of Elliott was bad news for the network.
“I’m really concerned especially when you consider he was brought back from China to do a job which he has clearly not been allowed to get on with. Many dealers in the network thought a lot of Simon and his abilities,” he said.
Elliott’s appointment in January this year followed the equally sudden departure of Peter Lambert as UK managing director last October.
Elliott’s starting date at VW, a company he began his career at 27 years ago, has yet to be announced.
Chrysler said it is still in the process of naming a successor.

DATED: 01.08.08

FEED: MT

Job losses will happen in US by November
General Motors plans to cut almost 5,000 salaried employees from its North American staff by 1 November as part of a cost-cutting initiative.
The cuts would amount to 15 per cent of GM’s white-collar North American workforce.

The announcement has come amid predictions that the American carmaker is poised to post big second quarter losses.
GM has also said it will cut back on its vehicle leasing operations, which could cause its US sales to drop even further.
It has been predicted that the carmaker’s total revenue will fall about 3 per cent in the second quarter and that GM will suffer an operating loss of $1.49bn (£75m).
In an attempt to offset its struggles in North America, GM has been relying on strong international operations.

DATED: 01.08.08

FEED: MT

Nissan is recalling 70,000 Sunderland-built Qashqais because of a possible fault with the steering mechanism. The recall affects vehicles built between November 2006 and June 2007, which were fitted with a component found to be faulty. Letters have been sent to the affected Qashqai owners across the world to arrange for the fault to be remedied.

DATED: 01.08.08

FEED: AW

Strength of RAC name crucial to new warranty brand The RAC name is proving crucial in the credit crunch-affected used car market to the success of the motoring organisation's new warranty brand. RAC Warranty was launched by the RAC in partnership with The Warranty Group in January and Ian Simpson, sales and marketing director, said that a large part of the new brand's initial success was thanks to dealers recognising the strength of the RAC brand in providing customer reassurance. He explained: "Dealers are telling us the same thing again and again. Customers worried about the credit crunch want a warranty that provides a high degree of reassurance - and trust that the RAC would only put their name to something highly dependable. "There are many car warranty brands available but almost none of them have any recognition outside the motor industry. Being able to say to a customer that you are providing an RAC warranty is a persuasive tool for a dealer." Simpson added that this argument became even stronger for older vehicles being sold by independent dealers who did not operate at the top end of the market. He said: "Used car customers who are spending less money are even more concerned that there is a really effective safety net available that will help them if a problem develops with their vehicle. For these people, the RAC Warranty brand is exceptionally strong." Simpson added that the features attracting independent used car retailers were not just the credibility of the RAC brand but the strength of the product range, easy and effective administration systems and high quality point of sale material. He continued: "This list of benefits is proving very attractive to independent used car retailers and they are coming on board very quickly. We are really pleased with the response we have been getting. "Deals with major dealer groups obviously take a little longer to complete but there are a number in progress and we hope to announce our first very soon."

DATED: 01.08.08

FEED: AW

German brand is third in year-to-date sales list
Volkswagen has leap-frogged Ford to become the world's third largest carmaker by vehicle sales.
According to figures for the first six months of the year, VW increased global sales 7.2 percent to 3.31 million cars and trucks, while Ford sales fell 11 percent to 3.09 million.

Ford was the world number two until five years ago when it was overtaken by Toyota.
Now it has dropped into fourth place as sales in the US have plummeted 14 percent as fuel prices have risen above £2 a gallon, hitting demand for its large pickup trucks and SUVs.
Ford can no longer count Jaguar and Land Rover in its sales figures having sold the British brands to Indian manufacturer Tata Motors last March.
Company boss Alan Mulally says Ford will put more emphasis on fuel-efficient small cars in the future leaning on models produced in Europe.
Meanwhile, VW has seen sales grow in emerging markets such as China, India, Brazil, Russia and Ukraine.
Toyota has since moved into the number one spot and sold 4.82 million vehicles in the first half of 2008 according to preliminary figures, while GM reported sales of 4.54 million.

DATED: 01.08.08

FEED: MT

Used sector is up despite downward market trends
London has seen the greatest increase in used 4x4 sales in the first quarter of the year, despite rising fuel prices, the congestion charge, and eco-friendly consumer trends.
Figures from the DVLA and Experian show Greater London buyers bought 11 per cent more SUVs in quarter one compared to the same period last year.

The region recorded the second highest increase in the purchase of used multi-purpose vehicles and an increase of 14.3 per cent in used diesel cars, compared to a national increase of 10.1 per cent.“Greater London continues to be the capital of 4x4 drivers. It is also the region to continue to see some of the biggest increases in diesel cars,” said Kirk Fletcher, managing director of Experian’s Automotive division. “Car buyers are more aware of the cost of running a car these days and if the rapid increase in fuel prices continues, we will see a more rapid growth in the sale of alternative fuel cars.
“Certainly over the last couple of years, sales of these vehicles types have risen more swiftly throughout the country.”Despite the increase in certain sectors, total used car sales in London remained static, increasing by a nominal 0.1 per cent.
Total used car sales throughout Great Britain fell by 0.5 per cent from 1,978,465 to 1,999,750 sales.

DATED: 01.08.08

FEED: AM

Liverpool Victoria has received the UK's second largest fine ever for mis-selling payment protection insurance (PPI).
The insurer has been ordered to pay £840,000 after being pursued by the Financial Services Authority (FSA) for "serious failings" in PPI sales.
Earlier this year HSBC subsidiary HFC Bank was fined £1m for similar failings.
The FSA said that Liverpool Victoria added the cost of PPI to quotes for personal loans without customers asking for it.
Around 14,500 customers were not told that PPI was being added to their loan, and that they would pay interest on it.

DATED: 01.08.08

FEED: AM

A Peugeot dealer in Yorkshire has ceased trading due to financial problems.
Matthewmans, which traded in Rotherham with Peugeot and Suzuki franchises, closed its doors after calling in administrators from Grant Thornton.
The business was run by Chris Matthewman, formerly a dealer principal with JCT600.
The outlet had traded since the 1960s as Derek G Pike, first with Fiat then with Peugeot from the 19080s, prior to Matthewman's management buy-in in 2005.

DATED: 01.08.08

FEED: AM

Jaguar Land Rover has selected Fiat Group Automobiles Financial Services (FGAFS) to be its exclusive partner in Europe to provide automotive financial services for its dealers and customers.
The agreement will gradually replace the arrangement with Ford, whose financial arm provided support during the Ford ownership of Jaguar Land Rover.
Under the arrangement, FGAFS, which is a 50%-50% joint venture between the bank, Crédit Agricole Group and Fiat Group Automobiles, will start taking on all Jaguar Land Rover’s financing activities in Europe from February next year, with the transition being completed by June 2009.

DATED: 01.08.08

FEED: AM

West Yorkshire retail group Colin Appleyard has set up an in-house training programme for its management and sales staff.
Previously, staff from the AM award-winning dealer group attended manufacturer training only. Rather than one-off training days, the scheme intends to revisit what has been learnt, looking at how staff have implemented the training into their work.
“Training often goes in one ear and out the other,” said Robin Luscombe, Colin Appleyard senior director.
“We’re trying to overcome this. Rather than return to the workplace and do what we used to do, training one month and going over it the next should help it make a difference to our staff.” Total outlay for training is around £35,000, with more than £1,500 invested per person.
Currently, there are 12 managers and six sales staff undertaking the new programme.
If successful, as Luscombe expects, and if “the economy picks up”, Colin Appleyard will run the training on an annual basis.
For managers, the scheme lasts nine months, while salespeople train for 18 weeks.
Staff turnover at the group is less than 10% but Luscombe hopes the programme will “reduce the costs of having people that don’t last”.
“It will also give people a chance to make themselves into good salesmen,” Luscombe added. Training is one day a week for salespeople and one half-day a month for managers.
Yorkshire Sales and Marketing Developments, the Institute of Sales and Marketing Management provider for the region, will deliver the sales training, while the management coaching will run in conjunction with the Blue Water Partnership.
Luscombe said staff would continue to attend manufacturer training days alongside the scheme. Colin Appleyard already runs apprentice schemes for young technicians, parts assistants and administration staff and it operates a policy of promoting from within.

DATED: 01.08.08

FEED: AM

1. Do Not walk behind me, for I may not lead. Do not walk ahead of me, for I may not follow,
Do not walk beside me either, just bugger off and leave me alone.

2. The journey of a thousand miles begins with a broken fan belt and a flat tyre.

3. Sex is like air, it only becomes really important when you're not getting any.

4. Never forget that you are unique, just like everyone else.

5. Never test the depth of the water with both feet.

6. If you think nobody cares about you, try missing a couple of mortgage payments.

7. Have you ever lent someone £20 and never seen them again, it was probably worth it.

8. If you tell the truth, you don't have to remember anything.

9. Some days we are the flies, some days we are the windscreen.

10. Don't worry, it only seems kinky the first time.

11. Good judgement comes from experience, experience comes from bad judgement.

12. A closed mouth gathers no feet.

13. There are two theories about how to win an argument with a woman, neither works.

14. Generally speaking, you arent learning much if your lips are moving.

15. Experience is something you don't get until just after you need it.


DATED: 31.07.08

FEED: PTL

We explore the inner workings of a broker whose business model seemed good, but were suffering from a negative slide in business and profitability, the harder they all worked, the worse the results became.

The problem at this particular business was a lack of understanding of basic human biology; the staff had stopped remembering that they had twice as many ears as mouths.

The Directors of the business had spent many hours building a strong network of Partners, Providers, and Products – and justifiably spent more hours winding the staff up to sell each and every part of that portfolio to each and every customer.

But the staff, under pressure to get results, began to tell, not sell, and they stopped listening to the customers needs. Sales of products actually slowed to less than before the launch of the new ranges, and as you would expect everyone ‘upstairs’ started to get miffed with everyone ‘downstairs’.

Sometimes when Profit Training is asked to visit clients and diagnose business problems it can take a day or two, other times like this example, the problem became clear in the first hour just listening to the staff interacting (I mean talking at…) the customers.

Three two hour sessions were delivered that first day, totally unscripted workshops covering quality qualification, listening skills, trial close and full close skills alongside objection handling techniques. The second day helped the Broker build a fully FSA compliant process, from TCF and ICOBS, to a commercially sensible complaints procedure.

The broker now has some of the best penetration figures in the industry, happy customers, happy staff and an FSA Audit to be proud of, with a commendation from the audit team on how well the customers were treated, the right product, at the right price every time. The complaints process has still to record its first screamer.

DATED: 31.07.08

FEED: PTL

An old marketing acronym, which always amused me as its spelled wrong, stands for ‘Walk in the shoes of your customer’. It reminds me of the wise old sage who asks us all “before you judge someone, walk a mile in their shoes, that way when you judge them, you’re a mile away and you have their shoes..”

Whatever your role in the dealership, you have a duty of care to see what your customers see the first time they walk in to your dealership.

Manufacturers still place substantial emphasis and bonus money on key franchise attributes, parking, signage, showroom standards etc. for a very good reason – this is the face of your business, and you need to view your business through your customers eyes.

This task is hard, but pays real dividends. The number of showrooms we visit where boxes of archive files are stacked on view to clients, the display areas are messy, threadbare, poorly stocked or with out of date information is incredible – but you see this every day, so it becomes the accepted norm, the standard.

It is for exactly this reason that mystery shopping exercises are conducted. They allow the dealership to get feedback on how they appear to customers, as well as how the sales process is executed.

So, how does your business look ? is the stock lined up and priced clearly? Of course it is, you probably do that every day – but what about other customer facing areas? Take a look at your business right now and ask yourself the following questions;

How clear is dealership signage, does it look fresh, or old & tired
How easy is it to park, or are the customer bays full of pre-prep stock, yesterdays swappers, staff cars & Demos, or non-sales vehicles
How tidy is the showroom area
How well stocked are the customer info and literature points
How good does the coffee area look, good, bad or Beirut
What does the loo look like, is it fresh and clean or a bit dismal

Give yourself 10 minutes to walk around your site, take ownership of the problems you find, and don’t assume that it is someone else’s problem. If you’re not empowered to do something shove the problem up the line and get it dealt with – all you can be accused of doing is improving the image of the business, which makes you look more professional, and will increase the probability of you doing more business.

As an illustration I visited a Mercedes dealership in May, with fabulous stock presentation and a showroom floor a hospital would have been proud of – but the sales literature was stored in boxes in the showroom, whilst the shelving racks which probably cost the dealership a few hundred remained empty, and the toilet looked like it had been imported directly from a Slum in Delhi.

DATED: 31.07.08

FEED: PTL

If you have read the headline story, but are unsure of how to apply that information to gain more finance sales, this article tells you in plain English how to utilise the knowledge to make the best of every retail opportunity, how to sell more finance cases, and how to improve your F&I pens.

OK, this section is down to qualification and rapport.

Rapport:- if you have good dialogue with the customer, and they trust you enough to buy a car from you, then it is fair to assume that they will be ok to discuss funding options with you. It is important at this stage to ensure you DO NOT start talking about how absolutely brilliant your finance is over personal loans.

Qualification is the next key step, put your pen down, pay your customer 100% attention, and ask them how they are going to fund their purchase.
As they start to tell you, remain focussed on them, and ask relevant open probe questions, such as which Bank are they using for the loan, why are they using that Bank, is it their main Bank, have they been with them long, do they use that Bank for all their major purchases ?

These line may seem cheesy, but they work in this current climate, and this is why. Your customers may have a 100% clean credit record, but for exactly that reason they will in all probability have lost use of a couple of credit cards, or had credit limits reduced on cards, or had their unused overdraft limit reduced, and that will be undermining their confidence in their financial situation.

Now is the time for a tell, tell them what the Banks do, how they price on rate for risk & how they advertise a rate but the customer rarely gets that rate. This services their own fears and expectations of their financial standing and links in their mind to ‘the Credit Crunch’.

Tell them that you offer a fixed rate, fixed term deal, with full protection of the Data Protection Act – ensuring 100% confidentiality, along with full protection under the Consumer Credit Act, which they DO NOT get with a personal loan, and finally, tell them they will get a guaranteed rebate on the outstanding interest if they decide to pay it off early.

Please remember – it is at the Banks discretion to offer a rebate on a loan, and according to the regulator, in 2007 only 7% of all personal loans were rebated in the event of early settlement. Finance, which is what you are selling your customer, has a 100% rebate record – because we have to under the Consumer Credit Act, protection your customers don’t get with a personal loan.

Finally on this piece, you may want to reassure your customers that the funder you are using is owned by a major bank, or you may want to reassure them that if they fail to make payments (job fears are creeping back into the media) the only thing that can be taken is the car.

DATED: 31.07.08

FEED: PTL

Direct Lenders have a major problem on their hands. New regulation on how they account for and report personal lending is causing them to review their lending criteria, and uplift their anticipated return on investment.

Anybody remember Enron ? The collapse of this energy giant in the US brought about the inception of a piece of compliance called Sarbanes-Oxley, often referred to in the financial world as SarbOx, or SOX

The aim of this work was to ensure that corporate assets and risks were correctly accounted for, removing the ‘flexibility’ that had been applied by the directors of that company, deliberately masking the actual and true state of financial affairs behind the business.

The UK, working within Europe, took key lessons from Enron and SarbOx, and adopted Basel 2. The Basel 2 Accord, now implemented across most of the developed world, presents challenges and opportunities to banks. Technical and complex, it is important to understand its impact on how a loan is priced and what the financial consequences of any change in its application might be.

Here’s the rub, those direct lenders that have been stealing your F&I business over the last few years now have to account for their unsecured, higher risk personal loans, in a totally different way. The decision they have is simple – as they have to account for the high risk nature of each loan (and lets face it, bad debt and non-prime lending is right up there in the headlines at the moment) they either decline personal loan business or write the loan at higher rates to justify & offset their exposure.

Additionally, the LIBOR (London Inter Bank Offered Rate) exchange is very quiet at the moment. This is the exchange that marks both the rate at which banks offer each other money, and the amount which they are putting into the market. Although the LIBOR rate is pretty stable currently, the actual amount of money within the market is vastly reduced from normal throughput – hence our well publicised problems with Northern Rock, the first run on a UK bank in 142 years. Northern Rock were starved of cash, as the LIBOR market flow dried up.

So in summary, the Direct Lenders, owned by the UK Banks, have to charge more for their loans, or decline a larger proportion of personal loan proposals. They would prefer to put more money out to the market with an asset backed security tagged on to reduce their risk, such as a house, boat, caravan or car. The act of having an asset within the loan reduces the potential loss as there is something repossess-able if the borrower doesn’t repay, thus the risk to the lender is reduced, and the yield on the lend is increased.


I wish we could claim that the reason that POS finance is rising was down to the skills, expertise and salesmanship of our dealer teams, but currently the rise we have seen can be directly attributed to the lack of appetite that the Direct Lenders in the UK market have for Personal Loan business

If you would like to really maximise your F&I opportunities and profitability, utilising information like this to gain competitive advantage, please get in touch, we would be delighted to help.

DATED: 31.07.08

FEED: PTL

The Institute of the Motor Industry has launched Autocity, a website which uses video interviews to detail more than 150 jobs in motor retail.
Its launch has coincided with the British International Motor Show and is hoped to inform the public of the varied and professional career opportunities on offer in the franchised and independent sectors.
The IMI has interviewed people currently employed at dealerships, independent workshops, bodyshops, fast-fits, motor factors and leasing companies, and provides information on likely employers for people interested in entering the industry.

Click here for the Autocity website

DATED: 30.07.08

FEED: AM

Lexus sales are suffering as consumers shy away from luxury vehicles as they tighten their belts.
The admission comes from Miguel Fonseca, UK managing director of Lexus and Toyota in the UK, who said sales of Lexus' petrol-only versions of its RX were particularly disappointing. Fonseca said: "The luxury market is down and the only part of it where sales are increasing is in the medium-size C-segment.
“Unfortunately we do not have a C-segment car and our year-on-year Lexus sales in the UK are 20% down and are expected to fall to 12,500 sales this year against 15,000 in 2007.”
Fonseca said Lexus was working with its UK dealers to get the balance right and concentrate on its service and aftersales business. Fonseca said: “We do have very good customer loyalty in terms of people bringing their cars back to dealers."
On the credit side, the Toyota brand is doing well and demand for the Prius hybrid is outstripping supply. Fonseca said the company will sell a record 9,351 of the models this year.
He added: "We could sell more but we can't get enough of them."
Toyota has scrapped plans to build sport utility models at a new North American factory, opting instead to assemble Prius. "That will open up more allocation for us from the factory in Japan," added Fonseca.

DATED: 30.07.08

FEED: AM

Hastings Insurance has been fined £735,000 by the Financial Services Authority for failing to treat its customers fairly.
The insurer cancelled around 4,550 car insurance policies after an internal error gave customers inaccurate quotes and left some undercharged for their cover.
The error occurred on two occasions last year.
The FSA said yesterday that Hastings had failed to treat customers fairly by cancelling the policies, and it failed to consider other possible remedies.
In cancelling, it forced customers to seek new policies, in some cases depriving them of the no-claims discount they had built up during the period insured.
Initially Hastings paid compensation for stress and inconvenience only if customers complained.

DATED: 30.07.08

FEED: AM

Indian vehicle manufacturer Tata, which recently bought Jaguar and Land Rover, is looking to revive Daimler. Tata has earmarked £1 billion to develop new models at its British-based manufacturers and it is suggested that the company wants to transform Daimler into a super-luxury marque to compete directly with Bentley and Rolls-Royce. Analysts believe that a new generation of Daimlers could find ready buyers. Leading motor industry academic Professor Garel Rhys, of Cardiff University, said: "Tata could make a very good job of this, especially if they target the space between where the top of Jaguar's current range ends and where manufacturers such as Bentley kick in. Daimler has a fantastic heritage." Jaguar shares the rights to the Daimler name with Daimler AG, the German car manufacturer created last year when DaimlerChrysler was split up. Jaguar agreed terms last year that allow the German company to use the Daimler brand as the title of a trading company, a trade name or a corporate name - rights that it did not hold previously. However, the renegotiated terms do not affect either company's existing right to use the Daimler name for a product." At present the Daimler badge is restricted to the most expensive Jaguar model - the Daimler Super Eight, which has an £80,000 list price.

DATED: 30.07.08

FEED: AW

More than a third of voters believe Labour is primarily responsible for high fuel prices, according to a poll by ICM Research for BBC One's 'Panorama' programme yesterday (July 28). The poll looked at how motorists have changed their habits in recent months and how the high price of fuel and car taxes will affect the way they vote. It found that 38% laid most of the blame for high pump prices at the feet of the Government. The survey also suggested that more than a third (35%) were more likely to vote for a political party which promised to lower car and fuel taxes.

DATED: 30.07.08

FEED: AW

More than half of drivers are leaving their cars at home because of the rising cost of fuel, according to an AA poll. Of the 15,300 drivers questioned during the first two weeks of July, 55% said they had made a conscious decision to cut back on car journeys because of the cost of fuel, up from 37% in April. The figure rose to 77% when including those who said they had maintained the same level of car use but had been forced to cut back on other areas of spending because of fuel prices. In April the figure was 64%. AA president Edmund King said he would be sending the findings to Chancellor of the Exchequer Alistair Darling to show how families were suffering because of the price of fuel. "The high petrol and diesel prices are affecting three-quarters of the public. For many people the car is an absolute necessity to get to work or the shops, so they have to cut back on other areas of expenditure. "Yet petrol and diesel is still taxed as a luxury with almost 60% of the pump price going to the Chancellor as tax. Ironically, petrol is taxed at a higher rate per litre than real luxuries such as champagne." Another result of high fuel prices is that more motorists are running out of fuel - up 11% year-on-year.

DATED: 30.07.08

FEED: AW

Point of sale industry has a "weak image"
Point of sale finance for new and used cars has slumped in the last decade, according to a report by Blackhorse Finance.
The study, undertaken by Professor Peter Cooke from the University of Buckingham, revealed dealers’ PoS finance suffered from a weak image and was considered uncompetitive.

From 1997 to 2006 it said franchised dealers’ new private car finance penetration fell from 52 per cent to 41 per cent, while used car finance penetration dropped from 53 per cent to 30 per cent.
Independent dealers’ used car finance penetration halved to 20 per cent in the period.The used car market in the UK was about three times the size of the new car market in the 10 years surveyed with private buyers accounting for about half of total new car sales and virtually all used car sales. New car finance ran between £5.7 and £7.1bn per annum, while used car finance fluctuated between £4.3 and £6.3bn.The report said manufacturers’ finance houses and high street bank finance had won business from dealers by aggressively promoting their products.“Franchised and non-franchised dealers may run the risk of losing car sales, particularly in a period of tight credit, if they do not promote PoS finance to private car buyers,” said Cooke, who added dealers should pursue finance sales even if the buyer had arranged funding before entering the showroom.“Dealers have lost a degree of independence,” he said. “There is a risk finance may increasingly come under the direct control of manufacturers’ finance houses with their objective of selling their own cars, and banks and building societies where the agenda is lending finance rather than tailoring a loan to satisfy a would-be car buyer’s exact requirements.”However, the onset of the credit crunch has hit high street credit availability which some analysts have suggested could boost PoS funding.
The Finance and Leasing Association claimed in June that PoS private new car finance had grown from 47 per cent to 49 per cent year-on-year.
“It has grown in popularity as consumers are finding it more difficult to get credit elsewhere,” said Paul Harrison, FLA head of motor finance.

DATED: 29.07.08

FEED: MT

Dealer group boosted by emerging markets
Inchcape has reported a resilient set of results for the six months to 30 June bolstered by growth in its operations in emerging markets.
The group posted pre-tax profit before exceptional items of £130.3m – up 8.6 per cent year-on-year.

Turnover grew 5.1 per cent to £3.3bn but remained on a par with the first half of 2007 in constant currency terms.
Shareholders benefited from a 9.5 per cent increase in headline earnings per share to 20.7 pence.
Although Inchcape Retail, the group’s UK division which is ranked second in the Motor Trader Top 200, claimed to have outperformed “a challenging market”.
Its operations in emerging markets delivered revenue growth of 54 per cent.
Inchcape chairman Peter Johnson highlighted the acquisition of Musa Motors in Moscow, which was completed in July 2008, as an example of how the group had profited from its increased exposure to emerging markets.
“We have a robust business model with an excellent geographic portfolio diversification and scale relationships with our brand partners,” he said.
Johnson added that the group had a strong balance sheet and the means to support further expansion.

DATED: 29.07.08

FEED: MT

Ryders Autoservice, which had dealerships in Liverpool and Bootle, has ceased trading after going into administration.
The company had been a retail dealer for Ford in Liverpool until its franchise was terminated early last month.
Ford said it is well represented in the Liverpool area and has no plans to appoint a replacement for Ryders.
Ryders also represented Mitsubishi in Bootle. Mitsubishi said it is in advanced discussions with a potential replacement to start a new business from an adjacent site.
Dermot Power and Matthew Dunham of BDO Stoy Hayward in Manchester are its appointed joint administrators.

DATED: 28.07.08

FEED: AM

Car production was up 7.9% for the year-to-date but fell slightly for the second successive month in June.
Paul Everitt, Society of Motor Manufacturers and Traders chief executive, said: "At the British International Motor Show at ExCeL London this week, I showed prime minister Gordon Brown a selection of the vehicles produced in the UK.
"He took great interest and commented that he is looking to provide incentives for the take-up of electric and greener vehicles. Manufacturers discussed with him how they are working to develop a portfolio of technologies to deliver lower carbon motoring. The main message coming through from industry is that a stable economic framework is needed in which to compete."

DATED: 28.07.08

FEED: AM

HBOS is hoping to raise £300 million from the sale of Hill Hire.
The business, owned by the bank's investment arm, is one of Britain's largest vehicle hire firms, with 21,000 vehicles and clients including Tesco and DHL.
The bank took Hill Hire private in 1999 for £74 million through its corporate banking division.
HBOS has appointed Grant Thornton to find potential buyers.

DATED: 28.07.08

FEED: AM

An administrators' report into collapsed web-based motor retailer New Car Discount reveals its bank cut its overdraft facility shortly before it went into administration in May.
That move, by Yorkshire Bank, followed a similar reduction by New Car Discount's previous financier, Royal Bank of Scotland, towards the end of 2007.
Joint administrator Andrew Poxon said in the report that a relocation of the business in January from Ashton-under-Lyne to Nelson, Lancashire, in order to cut costs actually led to the loss of several key staff.
Co-founder Terry Hogan resigned in February, and in May Yorkshire Bank reduced the company's £250,000 overdraft facility "due to poor financial reporting", says the administrators' report.
Remaining director David Scholfield was informed that the bank had no appetite to fund the company in future, leading to him putting it into administration.
The collapse did not affect Motoring.co.uk, an online car advertising portal which was devised by Hogan, Schofield and colleague Chris Green while all three were at New Car Discount.
Green and Hogan bought out Motoring.co.uk in November 2007.

DATED: 28.07.08

FEED: AM

Honda Motor has reported an unexpected rise in three-month profits but it still predicting falling profits for the whole of the year. Net profit between April and June was 179.6bn yen ($1.68bn; £848m), up 8.1% from the same period last year. The result came despite a 2.2% fall in revenue as a result of the strengthening Japanese currency. Despite the better-than-expected figure Honda maintained its forecast for an 18% fall in full-year net profit. Honda managed to raise three-month profits by raising prices and cutting costs. It has also seen strong demand for its fuel-efficient cars as oil prices have risen. Honda has also benefited from the flexibility of its factories, which have been able to switch production away from sport utility vehicles and into smaller vehicles as demand has shifted.

DATED: 28.07.08

FEED: AW

Daimler has shocked investors by becoming the first major European carmaker to issue a sharp profit warning for this year. The company said that sluggish growth in the car market was taking its toll on earnings. As a result shares in Daimler fell almost 12% after it lowered its profit forecast by more than 10% to around ?7 billion. Previously the company had predicted that profits would be significantly higher than last year's ?7.7bn Chief executive Dieter Zetsche said rising prices for raw materials such as steel and the strong euro were also partly to blame. But, he said the bigger reason was the drastic slowdown in European and US markets in the past few months. Analysts were surprised since Daimler had been seen as one of the least likely car companies to issue a profit warning.

DATED: 28.07.08

FEED: AW

Renault cut its 2009 sales target and pledged further cost-cutting in anticipation of a tougher European market after announcing a better-than-expected operating margin in the first half of this year. Renault says it will report a 2008 operating margin of 4.5%, up from 3.6% in 2007. However, the company warned that 'worsening economic conditions would make this milestone more difficult to attain'. Chairman and chief executive Carlos Ghosn said after sales in Europe dropped 0.5% in the first half compared with the same period last year: "We are in a fight in Europe." Renault expects a 4% drop in sales in Europe in 2008, with no improvement in 2009. However, the company has stuck to its promise of achieving an operating margin of 6% in 2009 but will have to cut jobs and costs to achieve it.

DATED: 28.07.08

FEED: AW

Simon Elliott to head up brand's commercial vehicle division
Volkswagen has appointed former Chrysler boss Simon Elliott as the new head of its commercial vehicles division.
Elliott, who only left the American brand last Thursday, replaces Robert Hazelwood who moved within the Volkswagen Group earlier this year to become director of Škoda UK.

He is yet to get a start date for his new role and VW said an announcement would be made “in due course”.
Prior to joining VW Elliott has also worked for Toyota Lexus and started his career at Volkswagen in vehicle logistics and sales before being promoted to a variety of sales and marketing roles.
“Simon brings a wealth of experience and I am very pleased to welcome him back to Volkswagen, “ said Robin Woolcock, managing director, Volkswagen Group.

DATED: 28.07.08

FEED: MT