F&I Management & Training

Car design chief dies following collision in Turin
Andrea Pininfarina, head of the Italian firm behind designs for Ferrari, Maserati, Volvo and Fiat, has been killed in a road accident.
Pininfarina, who was 51, was driving a scooter on the outskirts of Turin when he was hit by a car.
He was the grandson of Battista Pininfarina, who founded the firm, Pininfarina, in Turin in 1930.
Pininfarina joined the family business in 1983 after working in the States, having trained as a mechanical engineer.
Sergio Pininfarina, father of Andrea, is the company’s honorary chairman and Andrea has been survived by three children.
The family currently controls 55 per cent of the firm’s shares, but plans to cut its stake to about 30 per cent.

DATED: 09.08.08

FEED: MT

PwC study finds M&A activity is defying economic downturn
The number of automotive mergers and acquisitions during the first half of 2008 has been better-than-expected, according to PricewaterhouseCoopers.
The financial services firm has said the market appears to be on course to exceed 500 deals by the end of 2008.
So far this year automotive M&A activity has been driven by trade buyers, whereas financial buyers have remained secondary, PricewaterhouseCoopers found.
It said financial buyer activity decreased substantially in both deal volume and disclosed value.
Jason Wakelam, partner in transaction services PricewaterhouseCoopers LLP, said: “Overall deal volume has seen a moderate decline this year compared to 2007 and 2006, reflecting the knock on impact of the credit crunch.
“We are observing the early stages of an increasing trend of emerging market players acquiring major companies in established markets in order to achieve access to global customers, markets and technology – Tata Motors' acquisition of Jaguar and Land Rover being the most high profile examples in the UK to date.”

DATED: 09.08.08

FEED: MT

Carmaker is hit by tough trading conditions
Toyota has reported a 28 per cent drop in quarterly profits.
The Japanese carmaker's April-June net profit fell to 353.66bn yen (£1.66bn), dropping from a record 491.5bn yen a year ago.

Toyota has faced tough trading conditions in recent months, with US sales slumping, raw material prices rising and a strong Yen hurting its export business.
Last month the carmaker cut its 2008 global production and sales forecasts, while outlining plans to idle North American factory lines producing light pickups.
This quarter's profit was higher than the average estimate of 319.5bn yen from seven brokers surveyed by Reuters Estimates, however.
The company reported its operating profit, excluding earnings in China, falling 39 per cent to 412.6bn yen and revenue fell 4.7 per cent to 6,200bn yen this quarter.
The picture is even more gloomy for Toyota's rival General Motors, however, which last week reported a $15.5bn (£7.94bn) quarterly loss.
This was the American carmaker's third-biggest drop in over a century.

DATED: 09.08.08

FEED: MT

Volkswagen Financial Services (UK) has reported record sales growth by lending £1 billion so far this year, five months ahead of target.
Graham Wheeler, VW Finacial Services UK managing director, said: “It’s a tremendous achievement in the current economic climate that we have secured so much new business so quickly.
“People are coming to us rather than the banks.”
Wheeler put the success down to the fact VW has more available funds and could move faster than other financial organisations.
The £1bn in lending represents finance for 72,803 vehicles sold through Volkswagen retailers across the UK since January 1, 2008 across the range of Audi, Volkswagen, Volkswagen Commercial, Skoda, Seat and Bentley models.

DATED: 09.08.08

FEED: AM

Brian Carte has stepped down as chairman of Caffyns due to health reasons.
Brian Birkenhead, previously Caffyns’ audit committee chairman, has been appointed as the new Caffyns chairman with immediate effect. Andrew Goodburn will take over Birkenhead’s old role as well as continuing to assume his position as senior independent director.
Carte served for 12 years as a non-executive director on the Caffyns board including the last five years as chairman.
Caffyns also announced that Nicholas Hollingworth has been appointed as chairman of the remuneration committee.
Simon Caffyn, Caffyns chief executive, said: "On behalf of the board, I would like to thank Brian Carte for his very considerable contribution to the group over more than 12 years.
"His expertise and wise counsel have been very much appreciated."

DATED: 09.08.08

FEED: AM

Tesco is dipping its toe in the new car retail business with a leasing service for its employees.
Tesco Cars was launched as a pilot website last week and marks the latest stage of the supermarket giant’s handle on the services industry, where it already sells finance, insurance and warranty.
Tesco employees will be able to lease cars over a two to four year period, gaining 1,000 Tesco club card points for each year of the lease.
Cars, sourced from dealers across the UK, will be delivered to employees’ doors in the same way as Tesco delivers its groceries.
The leasing service is handled by Lombard Vehicle Management, which is part of the Royal Bank of Scotland Group.
A spokesman from Lombard Vehicle Management said: “It’s in its embryonic stage at the moment.
It will be piloted to a very select number of Tesco’s 300,000 UK employees before it goes live next year.
“Going live with the public market is not on the agenda at this stage.”
Tesco recently bought itself out of its personal finance joint venture with RBS for £950 million.
It revealed that it expects to make £1 billion from services this year, up from last year’s £400 million.
Sir Terry Leahy, Tesco chief executive, recently hinted at the retail giant’s future growth areas, saying: “Services are bigger and faster-growing markets than food.”
Tesco was looking at entering the online car retail market back in 2000, with plans at an advanced stage.
However, the idea was abandoned in the wake of the Block Exemption review in 2002.

DATED: 09.08.08

FEED: AM

Daihatsu is launching a ‘national cheaper motoring campaign’ to highlight the low running costs of its cars.
One Daihatsu will also have the cost of their car reimbursed as part of the national sales push. The free prize draw is open to anyone buying a new car during August and September.
Daihatsu’s 120-strong dealer network will be running the campaign supported by regional advertising and point-of-sale material.
The campaign will focus on four key areas, fuel economy, low road fund licences, five-year warranty and reliability.
Daihatsu’s five-year unlimited mileage warranty includes five years’ UK roadside recovery. The offer is not transferable and applies to all retail sales. It runs until the end of the year when it will be reviewed.
Paul Tunnicliffe, managing director of Daihatsu Vehicle Distributors, said: “Our cars are perfectly tuned for these challenging times. Thanks to competitive pricing such as £7,995 on-the-road for our Sirion 1.0S, low running costs and proven reliability, Daihatsu is enjoying a great 2008.
“This latest campaign should help continue our growth where we expect to enjoy both repeat business from satisfied customers and new sales to those seeking excellent value for money.”

DATED: 09.08.08

FEED: AM

Hatfields says its relocation of a Chrysler showroom is a sign of its faith in the brand.
It is transferring its Chrysler Jeep and Dodge showroom, Hatfields Sheffield, to a city-centre location, alongside its existing Jaguar franchise.
Due to redevelopment of the former site, which housed the showroom for 14 years, the Chrysler franchise will occupy a vacant showroom, adjacent to its Jaguar dealership.
A quarter of a million pounds has been invested in the showroom.
Capacity is for seven new cars and up to 20 used cars, compared to the old site, which had space for five new cars and 12 used cars.
The move will also provide more customer car parking spaces, which Gareth Williams, Hatfields managing director, said is crucial: “If there’s nowhere for customers to park, they just drive past.”
He added that the move would allow both businesses to develop.
“The service we give Jaguar customers will not be affected.
There is plenty of space on site for both operations.
“The two franchises are sufficiently different that they won’t be competing.
I expect them to complement each other,” Williams added.
The group added that it was at a stage where the dealership had outgrown the premises.
Hatfields has 12 sites across the north of England and west midlands. Six of them are Jaguar franchises.
Last year Hatfields refuted claims it was in trouble, after it closed two Hyundai sites in Oldham and Manchester.
It said all dealer groups went through changes in representation and insisted it remained “financially strong”.

DATED: 09.08.08

FEED: AM

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 5.0%.

Bank of England Maintains Bank Rate at 5.0%

DATED: 07.08.08

FEED: BoE

Used van values continue to be put under pressure according to data from BCA.
The company’s latest Pulse figures show that values slipped again in June as buyers remain cautious.
Duncan Ward, BCA's UK business development manager for commercial vehicles, said: “There continues to be price pressure in the used van market as average values continue to fall across the board.”
The average value across all sectors dropped to £3,499 in June, a fall of nearly £200 on May’s figure and the biggest monthly drop BCA has seen this year. Average values have fallen by more than £350 compared to those recorded in January 2008.
According to BCA’s Pulse report, fleet and lease vans averaged £3,827 in June - the second month running that values have failed to break the £4,000 watershed. This represented a fall of £152 against May’s values, equivalent to a 3.8% drop. This follows a drop of £147, equivalent to 3.5%, between April and May.
Values for part-exchange stock rose marginally by just £10 in June to £2,074, following a fall of nearly £200 the previous month that was equivalent to a decline of 8.3%.
In the nearly-new sector average values fell significantly to £9,052, a drop of £1,056 against May figures. Values are now some £2,000 behind those recorded in January 2008, although changing model mix at BCA will have contributed to these figures.
Ward said: “The market has now been slowing for most of the year, a situation we have not encountered in the LCV market for some considerable time.
“Buyers are still about in the same numbers, but buying patterns are patchy with a definite two-tier market developing of saleable, good quality stock that is sensibly valued, and difficult to place, poorer quality vans that appear over-valued in comparison.”
Ward said well-presented ready-to-retail vans were making exceptional values as buyers are paying “strong money” to secure them: “Even so, unless buyers already have a home for the van, there may be some hesitance in bidding much above the £7,000 mark.
“Away from the very best of the premium stock it is very much a buyer’s market, with sellers having to look at price to stimulate demand when there is a wealth of choice of similarly specified or condition vans.”
One bright spot according to Ward are LPG vans: “With fuel prices at record levels we have seen a resurgence in values of dual-fuel vehicles (petrol/LPG). Values on the few available have been firming – particularly in the south and Home Counties – but it’s fair to say there has been a step-change in demand in recent months.”

DATED: 05.08.08

FEED: AM

Drivers are being shamed into slowing down with new roadside signs that flash up their vehicle's registration number. The signs read number plates of speeding cars and flash them up on a giant screen with the warning message: 'slow down'. They are being tried out on London-bound drivers on the A12 dual carriageway at Kelvedon, near Colchester in Essex. Mark Pooley, of the Highways Agency, said: "We are investigating whether the system has an effect on the behaviour of drivers. We will assess the vehicle speed data and look at what impact the message had on drivers and how well the technology worked with live traffic. "Existing vehicle-activated systems only show the speed limit sign but do now show the vehicle number plate." None of the drivers whose registration numbers are flashed up will receive a speeding ticket during the seven-week trial.

DATED: 05.08.08

FEED: AW

Money will be used to help consumer finance division
Chrysler has secured a $27bn (£13.7bn) finance agreement in an attempt to help its struggling business financial arm, according to the Financial Times.
The US carmaker hopes the funding will enable it to continue offering discounts and incentives to customers wanting to finance their purchases of Chrysler, Jeep and Dodge vehicles.

The American company has attempted to offset rumours about its financial woes by reporting that as of 30 June, it had cash reserves of $11.7bn – a figure only slightly lower than at the end of 2007.
The carmaker said that it was “well ahead of plan”, earning a first-half profit – before taxes, interest and restructuring costs – of $1.1bn.
These claims come despite Chrysler’s US July sales standing 29 per cent lower than last year.

DATED: 05.08.08

FEED: MT

Pendragon has put the former headquarters of Reg Vardy up for sale.
The move comes despite the motor retailer's insistance earlier this year that it would not close Houghton House in Sunderland.
Pendragon took over the property when it acquired Reg Vardy
The Newcastle office of estate agent Storeys has begun pitching the building to businesses in the area for sale or lease.

DATED: 05.08.08

FEED: AM

BMW Group will miss its 2008 targets this year after it revealed a 43.5% drop in quarterly pre-tax profit to €602 million (£477m) due to worsening market conditions.
The drop shocked analysts which were predicting pre-tax profits of €1.04 billion (£823m). BMW now forecast a 2008 pre-tax profit margin of four per cent, after previously expecting earnings before tax to exceed last year's adjusted level of €3.78bn (£3bn).
BMW said: "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 US dollar, the impact of the international financial crisis and a weaker US economy.”
Chief Executive Norbert Reithofer said 2009 was shaping up to be a “difficult year full of challenges”.
He said: "We will use the strong headwinds as an opportunity for change and continue the process of renovating and optimising our business.
“We must and we will intensify our efforts on both the cost and revenues side even further.”
In order to battle the downturn in expected profits, BMW will be reducing production volumes and models that were intended for the US will now be sent to countries with higher margins.
The BMW Group is aiming for 2010, as an intermediate target, to achieve return on sales of at least 6% and in the automobiles segment.
Despite the gloomy outlook, BMW Group registered sales volume growth for all three brands from April to June.
The total number of BMW, Mini and Rolls-Royce brand vehicles delivered to customers increased by 4% to 413,087 units. Sales of BMW brand cars went up by 2.3% to 344,019 units. The Mini brand also recorded strong growth with the second-quarter sales volume up by 13.5% to 68,756 units. Rolls-Royce Motor Cars recorded an extremely high growth rate, with 312 units sold in the quarter, a 72.4% increase.

DATED: 05.08.08

FEED: AM

David Smith, CEO of Jaguar Land Rover, has said the two-brands will be able to operate with more freedom under the ownership of Tata, free from the financial constraints which tied them down at Ford.
Smith told the Financial Times: "Financial constraints had made life much more difficult at Ford.
"Tata wants us to be more autonomous, I’ve got all the executive authority I need to make day-to-day decisions without having to consult with Tata board members."
Smith will meet with Tata's chairman, Ratan Tata and its chief executive, Ravi Kant every couple of months to review progress on plans strategies and future products.
JLR is currently implementing plans to move the brands upmarket into the £100,000 area and the recruitment of 600 more engineers.
UK dealer group Inchcape announced it would be sticking with JLR after meeting with Tata bosses in Mumbai. It was convinced by the new direction Tata would be taking.

DATED: 05.08.08

FEED: AM

New brand is bucking downward market trend
San Motors, a new name to the UK retail sector, claims it will exceed its dealer recruitment target this year.
The fledgling brand currently has 14 dealers, including sites in Guernsey and Dundee, and expects to have between 30-35 sites by the end of the year.

UK managing director Tony Waite said reaction from dealers to the Storm had taken the franchise by surprise as it only planned to recruit eight sites this year.
“Dealers like the car because they can make a 20 per cent margin which is pretty unique in the industry,” he said.
The Storm, which is a two-seat convertible, has only just gone on sale.
The car retails for £9,995 and has a glass-fibre body, a 1.2 Renault Clio engine and is manufactured in India.
It will be followed by an as yet unnamed and sportier two-seater in October powered by a 1.6-litre Peugeot engine.
The brand will be attending the new Motor Trader Dealer Drive later this year.

DATED: 05.08.08

FEED: MT

Global group impressed by new owner Tata’s plans for the prestige marques
Inchcape has reversed its decision to dispose of its Jaguar and Land Rover franchises in the UK having been impressed by new owner Tata’s plans for the brands.
The dealer group runs 10 outlets for each of the marques which Ford sold to Tata for £1.15bn in March.

“Tata is a highly regarded industry player,” said Ken Lee, Inchcape’s group communications director.
Lee said Inchcape would have ended its relationship with Jaguar and Land Rover had a venture capitalist bought them.
“They were in the original group of brands we said we were exiting from,” he said.
But he said Tata had pledged to put investment behind the brands and had confirmed new model plans.
“We’ve had a great 18 months from the brands,” he added.
During the first half of 2008 Inchcape Retail sold five Vauxhall sites for £14.3m and plans to dispose of 12 more non core dealerships – including franchises for Ford, Kia and Renault - as it focuses on its prestige portfolio.
Lee said Inchcape Retail, which is ranked second in the Motor Trader Top 200, now commanded 8 per cent of the premium segment in the UK.

DATED: 05.08.08

FEED: MT