Friday, September 05, 2008
LDV Owners in Major European Investment
The owners of Birmingham-based van maker LDV has announced a major investment in a specialist European diesel engine design and manufacturer.
GAZ Group, Russia’s leading manufacturer of commercial vehicles, has bought a 50 per cent stake in VM Motori, alongside General Motors Corporation.
The Italian-based company currently supplies LDV with the latest hi-tech diesel engines for its MAXUS range, along with other international brands including Chrysler and Jeep.
As part of the agreement GAZ Group will produce the hi-tech VM Motori engines under licence for the MAXUS range and have more control over the transfer from the production line to the LDV site in Birmingham.
GAZ Group’s chief executive, Sergey Zanozin, said: “Having more control of the production and supply of the diesel engines for the MAXUS range of light commercial vehicles, will help the company achieve key strategic goals.
“GAZ Group intends to provide a complete range of diesel engines to meet existing and future customer and environmental requirements for its global markets.”
LDV’s chief executive, Evgeniy Vereshchagin, said: “This significant investment by the group will give LDV greater access to a wide range of state-of-the-art diesel engines.
“It’s an exciting development and allows the company increased flexibility and input in developing future engines for the MAXUS range.”
DATED: 05.09.08
FEED: LDV
GAZ Group, Russia’s leading manufacturer of commercial vehicles, has bought a 50 per cent stake in VM Motori, alongside General Motors Corporation.
The Italian-based company currently supplies LDV with the latest hi-tech diesel engines for its MAXUS range, along with other international brands including Chrysler and Jeep.
As part of the agreement GAZ Group will produce the hi-tech VM Motori engines under licence for the MAXUS range and have more control over the transfer from the production line to the LDV site in Birmingham.
GAZ Group’s chief executive, Sergey Zanozin, said: “Having more control of the production and supply of the diesel engines for the MAXUS range of light commercial vehicles, will help the company achieve key strategic goals.
“GAZ Group intends to provide a complete range of diesel engines to meet existing and future customer and environmental requirements for its global markets.”
LDV’s chief executive, Evgeniy Vereshchagin, said: “This significant investment by the group will give LDV greater access to a wide range of state-of-the-art diesel engines.
“It’s an exciting development and allows the company increased flexibility and input in developing future engines for the MAXUS range.”
DATED: 05.09.08
FEED: LDV
Car Dealers Evaluate Partnerships
NFDA Survey Reports'Car dealers are operating in a challenging business environment, and are evaluating all aspects of their business, including the benefits of manufacturer partnerships' said Sue Robinson, Director of the RMI National Franchised Dealers Association (NFDA), commenting on the findings of the latest NFDA Dealer Attitude Survey. The NFDA Summer 2008 Dealer Attitude Survey, published this month, shows that dealers are looking carefully at the balance between manufacturer requirements, and the services they gain through the relationship. In broad terms, dealers are largely satisfied with their current arrangements:
60 per cent of dealers are happy with level of control exerted by manufacturers.
70 per cent of dealers are satisfied with the value, price and image of the product they represent. However, when looking at specific elements, satisfaction levels are lower:
52 per cent of networks are satisfied with the profit return of their franchise.
54 per cent are satisfied with future sales targets. Commenting on the survey, NFDA Director Sue Robinson said: 'Dealers are looking at all aspects of their operations at present in order to maximize efficiencies. This includes the manufacturer requirements they must meet, and the services provided to them as a result of this partnership. If there is a balance between what they must do and what they gain from the relationship, dealers will be satisfied. However if demands are too onerous, with scant benefits to show for it, dealers will question their current arrangements. 'For the most part dealer gains seem to be equitable with the requirements they must meet, and with the Block Exemption Regulation (BER) up for renewal, many will be looking towards preserving long term cordial relations to offset the potential changes that may occur in the industry. The NFDA is working with Government in Brussels and Westminster to put the case for continuity in the industry. The rights and freedoms that have assured the current manufacturer dealer relationship work for the most part, and need to be preserved. We are attempting to achieve this for the industry.'
DATED: 05.09.08
FEED: AW
60 per cent of dealers are happy with level of control exerted by manufacturers.
70 per cent of dealers are satisfied with the value, price and image of the product they represent. However, when looking at specific elements, satisfaction levels are lower:
52 per cent of networks are satisfied with the profit return of their franchise.
54 per cent are satisfied with future sales targets. Commenting on the survey, NFDA Director Sue Robinson said: 'Dealers are looking at all aspects of their operations at present in order to maximize efficiencies. This includes the manufacturer requirements they must meet, and the services provided to them as a result of this partnership. If there is a balance between what they must do and what they gain from the relationship, dealers will be satisfied. However if demands are too onerous, with scant benefits to show for it, dealers will question their current arrangements. 'For the most part dealer gains seem to be equitable with the requirements they must meet, and with the Block Exemption Regulation (BER) up for renewal, many will be looking towards preserving long term cordial relations to offset the potential changes that may occur in the industry. The NFDA is working with Government in Brussels and Westminster to put the case for continuity in the industry. The rights and freedoms that have assured the current manufacturer dealer relationship work for the most part, and need to be preserved. We are attempting to achieve this for the industry.'
DATED: 05.09.08
FEED: AW
Car Buyers Want Nearly New
Economical and environmental concerns make buyers choose newer cars In a recent survey carried out by Exchange & Mart, it was revealed that 84% of over 1,000 buyers surveyed would like their next car to be less than five years old. This figure has increased since the same survey was carried out in 2007 and may be due to growing awareness that newer cars are more economical and environmentally friendly. The reduced efficiency and increased carbon emissions of older cars are making the news every week, and this may be having an effect on the way car buyers think about their next vehicle. Compared to the 2007 results, it appears that whilst buyers are not necessarily looking for a brand new car they are prepared to make an investment now to save money in the longer term, by spending more on a relatively new car which will cost less to keep running. Whilst the most popular price bracket was £1-5,000, a greater number of buyers are now thinking of spending between £5,000 and £15,000 on their next vehicle. To buy a car which is just one year old, will save you around 40% of the vehicle's original value, offering a huge saving on what is still a very economical car which remains covered by the manufacturer's warranty, showing that choosing wisely can save you a significant amount of money. "As the saying goes: If you take care of the pennies, the pounds will look after themselves, and you can do this by buying a nearly new car as you save not only on the price of the car, but on the running costs in the long term as well." says Debra Healy, Digital Director at Exchange & Mart. "A newer car will cost less to keep on the road as there will be fewer mechanical issues due to age, high mileage and wear-and-tear." Healy concluded: "From this research, it appears that the used car buyer is becoming more aware of long term value for money and less inclined to opt for an instant bargain. Dealers need to remain responsive to this shift in buying habits and by doing so will easily avoid the risk of significant losses during the crunch."
DATED: 05.09.08
FEED: AW
DATED: 05.09.08
FEED: AW
Slump hits Bentley car production
Almost four thousand staff at Crewe-based carmaker Bentley are going down to a three-day week. The firm has blamed the cut in production on the economic slowdown which has led to a fall in sales. The luxury car maker says there has been a 16% fall in global sales in the year-to-date, with demand dropping the most in the US market. Production line workers were told on Thursday that shifts were being cut from four days a week to three days. Staff will stay on full pay until production is stepped up again under a "time banking" agreement. Bentley says it is a temporary measure which is being monitored constantly and the firm expects the situation to remain challenging for the rest of this year and into the start of 2009. But Bentley says the steps should safeguard the brand's value and the future security of the company and its workforce.
DATED: 05.09.08
FEED: AW
DATED: 05.09.08
FEED: AW
Citroen Retail adds three sites
Citroën Retail is well on the way to its target of 15 sites by 2010 after adding dealerships in Slough, Redditch and Letchworth.
The move includes two acquisitions and takes the carmaker-owned group to 12 sites. Citroën will not disclose figures, but AM estimates the additions take Citroën Retail into the AM100’s top 25, on turnover of £350 million.
The Redditch site was bought from Brooklyn Motors. It has a second Citroën outlet in nearby Kidderminster, which is multi-franchised with Ford and Mazda. The Letchworth outlet was bought from Wayside Group, which has no other Citroën sites.
Citroën Retail managing director Thierry Calewaert said the acquisitions were by “mutual agreement” between Citroën and the existing dealers.
The opportunity to buy both only came up in the past two months.
Calewaert said: “We will be investing approximately £200,000 in the Redditch site on refurbishment, but the Letchworth site will need less money as it’s much smaller and the building is quite new.”
The Slough dealership, built at Citroën UK’s headquarters, opens this month. It will allow Citroën UK senior management to gain first-hand experience of a Citroën dealership.
All Citroën Retail’s sites fit into five regional hubs: Scotland (Glasgow, Edinburgh), Manchester (centre, south), Midlands (Birmingham, Coventry, Redditch), London (west, city) and M25 area (Letchworth, Slough, Hatfield). Calewaert is looking for sites in Liverpool, Milton Keynes and another in Edinburgh.
Citroën Retail aims to achieve 20% of all Citroën new car sales in the UK. It now accounts for 13%.
DATED: 05.09.08
FEED: AM
The move includes two acquisitions and takes the carmaker-owned group to 12 sites. Citroën will not disclose figures, but AM estimates the additions take Citroën Retail into the AM100’s top 25, on turnover of £350 million.
The Redditch site was bought from Brooklyn Motors. It has a second Citroën outlet in nearby Kidderminster, which is multi-franchised with Ford and Mazda. The Letchworth outlet was bought from Wayside Group, which has no other Citroën sites.
Citroën Retail managing director Thierry Calewaert said the acquisitions were by “mutual agreement” between Citroën and the existing dealers.
The opportunity to buy both only came up in the past two months.
Calewaert said: “We will be investing approximately £200,000 in the Redditch site on refurbishment, but the Letchworth site will need less money as it’s much smaller and the building is quite new.”
The Slough dealership, built at Citroën UK’s headquarters, opens this month. It will allow Citroën UK senior management to gain first-hand experience of a Citroën dealership.
All Citroën Retail’s sites fit into five regional hubs: Scotland (Glasgow, Edinburgh), Manchester (centre, south), Midlands (Birmingham, Coventry, Redditch), London (west, city) and M25 area (Letchworth, Slough, Hatfield). Calewaert is looking for sites in Liverpool, Milton Keynes and another in Edinburgh.
Citroën Retail aims to achieve 20% of all Citroën new car sales in the UK. It now accounts for 13%.
DATED: 05.09.08
FEED: AM
Nissan GB puts its retail partners under spotlight
This summer Nissan GB is holding a review of every retail partner and every location in its dealer network.
Managing director Paul Willcox wants a full diagnostic evaluation of the current performance of each site and partners’ strengths and weaknesses.
This will be followed by a needs analysis to identify ways of helping dealerships.
“Rather than saying we’ll support our dealers by writing a cheque it’s about seeing what’s needed and putting in a programme to achieve that,” Willcox told AM.
He said there are too many different programmes in place at present, and there is a danger that managers spend too long trying to understand the programmes and lose focus from the dealership.
Willcox wants to end many of the programmes with the aim of making the franchise one of the simplest to run.
“We’re taking a lot of the complexity out of the business and focusing on the things that matter – selling parts, selling labour hours and selling cars,” he said.
Willcox has visited more than 30 of his dealers since his appointment in April.
Nissan’s UK registrations have been declining since 2005, and he wants to get the network motivated and ready to drive forward Nissan’s medium-term global strategy GT 2012 (G is for growth, T is for trust).
This focuses on improvements in quality, zero-emissions leadership and revenue growth through expanding the product range.
“In the UK we’re looking to grow the range in cars and LCVs, and we have the challenge of managing that through the network.
“We’ll be transparent with all partners and we’ll explain what their commitment is. “We need to grow our brand to take it from 1% market share to 4% by 2012,” he said.
There are two priorities in the franchise plan to achieve this. First is to add 28 sales points, taking the network to around 208 locations, which will be 95% capacity, he said.
These will be in addition to any transfers of current sites.
“We will need to change probably 40 of our existing outlets,” said Willcox.
“The bottom 15% are consistently underperforming in every single metric, and those will have to improve or we will migrate them out. But 60% of the network does not need to do anything.”
Second priority is to increase volume through the network. With it, Willcox insists, will come greater profitability.
“When the network growth is completed we want to hold the level of percentage profit to turnover between 1-1.5% or maybe up to 2%, but to increase the volume throughput for dealers so their overall performance should be significantly increased.”
A small proportion of the current network is loss-making, but Willcox expects this to be below 10% by 2012.
DATED: 05.09.08
FEED: AM
Managing director Paul Willcox wants a full diagnostic evaluation of the current performance of each site and partners’ strengths and weaknesses.
This will be followed by a needs analysis to identify ways of helping dealerships.
“Rather than saying we’ll support our dealers by writing a cheque it’s about seeing what’s needed and putting in a programme to achieve that,” Willcox told AM.
He said there are too many different programmes in place at present, and there is a danger that managers spend too long trying to understand the programmes and lose focus from the dealership.
Willcox wants to end many of the programmes with the aim of making the franchise one of the simplest to run.
“We’re taking a lot of the complexity out of the business and focusing on the things that matter – selling parts, selling labour hours and selling cars,” he said.
Willcox has visited more than 30 of his dealers since his appointment in April.
Nissan’s UK registrations have been declining since 2005, and he wants to get the network motivated and ready to drive forward Nissan’s medium-term global strategy GT 2012 (G is for growth, T is for trust).
This focuses on improvements in quality, zero-emissions leadership and revenue growth through expanding the product range.
“In the UK we’re looking to grow the range in cars and LCVs, and we have the challenge of managing that through the network.
“We’ll be transparent with all partners and we’ll explain what their commitment is. “We need to grow our brand to take it from 1% market share to 4% by 2012,” he said.
There are two priorities in the franchise plan to achieve this. First is to add 28 sales points, taking the network to around 208 locations, which will be 95% capacity, he said.
These will be in addition to any transfers of current sites.
“We will need to change probably 40 of our existing outlets,” said Willcox.
“The bottom 15% are consistently underperforming in every single metric, and those will have to improve or we will migrate them out. But 60% of the network does not need to do anything.”
Second priority is to increase volume through the network. With it, Willcox insists, will come greater profitability.
“When the network growth is completed we want to hold the level of percentage profit to turnover between 1-1.5% or maybe up to 2%, but to increase the volume throughput for dealers so their overall performance should be significantly increased.”
A small proportion of the current network is loss-making, but Willcox expects this to be below 10% by 2012.
DATED: 05.09.08
FEED: AM
Subaru appoints new dealer in Sheffield
Europa UK has been appointed the Subaru franchise in Sheffield and is the tenth new appointment for the Japanese manufacturer so far this year.
Subaru said there’s also a further 10 appointments to come before the end of the year.
Lawrence Good, managing director, Subaru (UK), said: "There has never been a better time for new dealers to get on board. In less than one year, Subaru has introduced the Boxer diesel in the Legacy Sports Tourer and Outback models, together with the forthcoming Forester and Impreza.
“With the introduction of the new Impreza S range, this will reinforce our plans to increase market share in the UK.”
DATED: 05.09.08
FEED: AM
Subaru said there’s also a further 10 appointments to come before the end of the year.
Lawrence Good, managing director, Subaru (UK), said: "There has never been a better time for new dealers to get on board. In less than one year, Subaru has introduced the Boxer diesel in the Legacy Sports Tourer and Outback models, together with the forthcoming Forester and Impreza.
“With the introduction of the new Impreza S range, this will reinforce our plans to increase market share in the UK.”
DATED: 05.09.08
FEED: AM
Thursday, September 04, 2008
Bank of England Maintains Bank Rate at 5.0%
Bank of England Maintains Bank Rate at 5.0%
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: 04.09.08
FEED: BoE
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: 04.09.08
FEED: BoE
Porsche sales tumble
Porsche is feeling the impact of the credit crunch with international sales plunging.
The German sportscar maker saw North American sales tumble by 45 per cent last month, while UK sales are down 26 per cent in the year to date.
In Porsche's home market, sales fell by over than 18 per cent in the year to July.
The carmaker has attributed these drops to a model changeover of its top-selling 911 vehicles.
A face-lifted 911 model with a more fuel-efficient engine is to be launched in the US later this month.
DATED: 04.09.08
FEED: MT
The German sportscar maker saw North American sales tumble by 45 per cent last month, while UK sales are down 26 per cent in the year to date.
In Porsche's home market, sales fell by over than 18 per cent in the year to July.
The carmaker has attributed these drops to a model changeover of its top-selling 911 vehicles.
A face-lifted 911 model with a more fuel-efficient engine is to be launched in the US later this month.
DATED: 04.09.08
FEED: MT
MBO for Lythgoe
Bolton-based Lythgoe Motor Group has been sold in a management buyout to its operations manager Mark Beach.
The business, which operates Mazda, Citroen, Kia, Fiat and Nissan franchises and a servicing centre from five sites north of Manchester, was sold for an undisclosed sum.
The MBO, which was facilitated through Trevor Jones' Dealermatch service, follows the retirement of the group's owner Rob Lythgoe.,
"We're going to keep things as they are for the moment," said Beach.
"I think everybody in the motor trade is finding life a bit tougher than it was, so we're just going to keep doing what we're doing and see where we are in 12 months and think about the possibility of expansion then."
Beach has spent 12 years with the business, which currently reports a £40m+ turnover. The business employs 150 members of staff.
"I am confident with the team we have at Lythgoe Motors that we can continue the success of the long standing business and look to grow in the coming years," he said.
DATED: 04.09.08
FEED: MT
The business, which operates Mazda, Citroen, Kia, Fiat and Nissan franchises and a servicing centre from five sites north of Manchester, was sold for an undisclosed sum.
The MBO, which was facilitated through Trevor Jones' Dealermatch service, follows the retirement of the group's owner Rob Lythgoe.,
"We're going to keep things as they are for the moment," said Beach.
"I think everybody in the motor trade is finding life a bit tougher than it was, so we're just going to keep doing what we're doing and see where we are in 12 months and think about the possibility of expansion then."
Beach has spent 12 years with the business, which currently reports a £40m+ turnover. The business employs 150 members of staff.
"I am confident with the team we have at Lythgoe Motors that we can continue the success of the long standing business and look to grow in the coming years," he said.
DATED: 04.09.08
FEED: MT
Wednesday, September 03, 2008
Rules to toughen on business viability
Directors of companies could have to disclose any significant doubts over whether the business really is a going concern under new rules.
Under current guidance, directors can reach one of three conclusions: that they are confident the business is a going concern; that they have some doubts but are content to use 'going concern'; or that the business is not viable.
Going concern is a judgement that the business is financially viable for 12 months.
The Financial Reporting Council is proposing an overhaul that would require directors to disclose if they have identified material uncertainties that may cast doubt about the ability of the company to continue as a going concern.
DATED: 03.09.08
FEED: AM
Under current guidance, directors can reach one of three conclusions: that they are confident the business is a going concern; that they have some doubts but are content to use 'going concern'; or that the business is not viable.
Going concern is a judgement that the business is financially viable for 12 months.
The Financial Reporting Council is proposing an overhaul that would require directors to disclose if they have identified material uncertainties that may cast doubt about the ability of the company to continue as a going concern.
DATED: 03.09.08
FEED: AM
Thieves target SUV cats
4x4 owners have a new enemy – thieves who slip underneath the car’s chassis and saw off its catalytic converter.
Police believe thousands of exhaust parts have been stolen from 4x4s in the past six months by criminal gangs that want the precious metals inside, reported The Sunday Times.
Models targeted for metals such as platinum, palladium and rhodium, include Mitsubishi L200, BMW X5 and Ford Ranger.
Mitsubishi Shoguns and Land Rover Discoveries have also been hit.
Cars can be driven to a garage without the converters, but a loud rattle will be heard underneath the vehicle.
They cost up to £2,000 to replace.
DATED: 03.09.08
FEED: AM
Police believe thousands of exhaust parts have been stolen from 4x4s in the past six months by criminal gangs that want the precious metals inside, reported The Sunday Times.
Models targeted for metals such as platinum, palladium and rhodium, include Mitsubishi L200, BMW X5 and Ford Ranger.
Mitsubishi Shoguns and Land Rover Discoveries have also been hit.
Cars can be driven to a garage without the converters, but a loud rattle will be heard underneath the vehicle.
They cost up to £2,000 to replace.
DATED: 03.09.08
FEED: AM
Ford of Europe boss to head up Volvo
Stephen Odell, currently chief operating officer of Ford's European operations, is to replace Fredrik Arp as the president and CEO of Volvo Car Corporation.
Odell will take up the role on October 1 and will be responsible for Volvo's global operations out of its headquarters in Gothenburg, Sweden.
Odell will report to Lewis Booth, executive vice president of Ford Motor Company and chairman of Volvo Car Corporation, who will continue to oversee the strategic direction of Volvo.
Booth thanked Arp for his leadership of Volvo over the past three years.
Booth said: "Fredrik Arp has steered the Volvo team through some difficult times since joining the company three years ago.
"Fredrik has decided that now is the right time to hand over to a new president and CEO who will lead the Volvo team through the next stage of its recovery."
DATED: 03.09.08
FEED: AM
Odell will take up the role on October 1 and will be responsible for Volvo's global operations out of its headquarters in Gothenburg, Sweden.
Odell will report to Lewis Booth, executive vice president of Ford Motor Company and chairman of Volvo Car Corporation, who will continue to oversee the strategic direction of Volvo.
Booth thanked Arp for his leadership of Volvo over the past three years.
Booth said: "Fredrik Arp has steered the Volvo team through some difficult times since joining the company three years ago.
"Fredrik has decided that now is the right time to hand over to a new president and CEO who will lead the Volvo team through the next stage of its recovery."
DATED: 03.09.08
FEED: AM
Aston Martin to revive Lagonda marque
Dr Ulrich Bez, Aston Martin’s CEO has confirmed the company will be reviving the Lagonda luxury grand tourer brand.
Lagonda will allow Aston to move into the luxury saloon market and the first concept model for the range will be revealed next year, ready for market in 2012.
Bez said: “After my eight years with Aston Martin, four with profitability, and 16 months of independence, it’s time to think about a longer term future.
“We have now investigated and concluded that the revival of the Lagonda brand would allow us to develop cars which can have a different character than a sportscar, and therefore offer a perfect synergy.”
Aston Martin is currently sold in 32 countries around the world but Bez expects the Lagonda brand to boost this representation to 100.
DATED: 03.09.08
FEED: AM
Lagonda will allow Aston to move into the luxury saloon market and the first concept model for the range will be revealed next year, ready for market in 2012.
Bez said: “After my eight years with Aston Martin, four with profitability, and 16 months of independence, it’s time to think about a longer term future.
“We have now investigated and concluded that the revival of the Lagonda brand would allow us to develop cars which can have a different character than a sportscar, and therefore offer a perfect synergy.”
Aston Martin is currently sold in 32 countries around the world but Bez expects the Lagonda brand to boost this representation to 100.
DATED: 03.09.08
FEED: AM
Renault Retail shelves £9m London West plans
Renault Retail Group has been forced to abandon plans to redevelop its flagship London West site due to the current economic downturn.
Architects Scaramanga Design had returned a tender for £9 million to develop a five-storey vehicle display area and showroom, featuring a café, workshops and offices.
Building work was due to start last month and was expected to take two years.
Ian Plummer, managing director of Renault Retail Group, said: “I can confirm there was a tender process to redevelop Renault London West with a view to improving efficiency and customer service.
“Current market conditions, particularly the property market, have led to Renault Retail Group re- evaluating these plans.”
However, Plummer said RRG would continue to focus on maximising the efficiency of Renault London West without the redevelopment.
The UK commercial property market faced a tough time during the global credit crunch. Net new lending to commercial property investors was down by a fifth in the second quarter of 2008 compared with the same period in 2007, according to the Bank of England.
Buying and selling of commercial property shrank to £5.13 billion in the three months to the end of June, the lowest quarterly total since the third quarter of 2001.
DATED: 03.09.08
FEED: AM
Architects Scaramanga Design had returned a tender for £9 million to develop a five-storey vehicle display area and showroom, featuring a café, workshops and offices.
Building work was due to start last month and was expected to take two years.
Ian Plummer, managing director of Renault Retail Group, said: “I can confirm there was a tender process to redevelop Renault London West with a view to improving efficiency and customer service.
“Current market conditions, particularly the property market, have led to Renault Retail Group re- evaluating these plans.”
However, Plummer said RRG would continue to focus on maximising the efficiency of Renault London West without the redevelopment.
The UK commercial property market faced a tough time during the global credit crunch. Net new lending to commercial property investors was down by a fifth in the second quarter of 2008 compared with the same period in 2007, according to the Bank of England.
Buying and selling of commercial property shrank to £5.13 billion in the three months to the end of June, the lowest quarterly total since the third quarter of 2001.
DATED: 03.09.08
FEED: AM
Premium brands: switching allegiance to China and India?
Emerging market likes China and India could spell good news for UK dealers as stock can be diverted away from mature markets over to Asia, which could help margins and reduce stocking costs.
The claim comes from a report by Les Glassock & Associates examining how Audi and Porsche grew from a standing start in China and what their aspirations are for India.
Audi’s biggest export market was China in 2007, Porsche aren’t far behind with 4% of its cars going to China. BMW sold 51,000 cars in China last year and is expecting to sell 1,000 units in India this year.
The economies of China and India have been growing at around 10% or more for a decade. Their car markets have been growing even faster and, in the case of China they already have a substantial premium and luxury car market, over 260,000 in 2007 and expected to double in five years.
India, whose market development is probably a decade behind, is estimated to grow their premium and luxury segment to over 100,000 by the same time.
Fuelling this phenomenal growth is the creation of “high” and “ultra high net worth individuals”. China has almost 900,000 people worth £500,000 or more, while India has 123,000 according to the recent Merrill Lynch “World Wealth Report, 2008”.
Audi invested earlier than most, back in 1988, recognizing it had more chance of establishing leadership in an emerging market, instead of battling with BMW and Mercedes-Benz in established markets.
In the luxury segment, Porsche have taken leadership, based on selective investment in quality dealers.
DATED: 03.09.08
FEED: AM
The claim comes from a report by Les Glassock & Associates examining how Audi and Porsche grew from a standing start in China and what their aspirations are for India.
Audi’s biggest export market was China in 2007, Porsche aren’t far behind with 4% of its cars going to China. BMW sold 51,000 cars in China last year and is expecting to sell 1,000 units in India this year.
The economies of China and India have been growing at around 10% or more for a decade. Their car markets have been growing even faster and, in the case of China they already have a substantial premium and luxury car market, over 260,000 in 2007 and expected to double in five years.
India, whose market development is probably a decade behind, is estimated to grow their premium and luxury segment to over 100,000 by the same time.
Fuelling this phenomenal growth is the creation of “high” and “ultra high net worth individuals”. China has almost 900,000 people worth £500,000 or more, while India has 123,000 according to the recent Merrill Lynch “World Wealth Report, 2008”.
Audi invested earlier than most, back in 1988, recognizing it had more chance of establishing leadership in an emerging market, instead of battling with BMW and Mercedes-Benz in established markets.
In the luxury segment, Porsche have taken leadership, based on selective investment in quality dealers.
DATED: 03.09.08
FEED: AM
Motor retailer raided in stolen car investigation
Police have raided the Kilmarnock showroom of used prestige car dealer Robert Wyper Ltd.
Officers have impounded an Audi TT and are investigating whether the car is linked to a nationwide cloning operation.
Owner Robert Wyper, who began the business in 1999 and also operates a Renault approved repairer franchise, insists he is innocent and bought the car from another dealer in good faith.
Police are tracing a nationwide scam involving up to 150 stolen cars which have been given the same registration plate as legitimate vehicles, known as cloning.
He told Scotland's Sunday Mail newspaper: "They were interested in an Audi TT which I bought in good faith from a dealer in Leicester.
"I paid £20,000 for it and sold it to a customer in June. The police took away the paperwork in relation to that car and have recovered the Audi."
He has provided a replacement car for the customer, and said the business would take the £20,000 loss.
Wyper said officers told him two other motor retailers have been conned in the same way.
DATED: 03.09.08
FEED: AM
Officers have impounded an Audi TT and are investigating whether the car is linked to a nationwide cloning operation.
Owner Robert Wyper, who began the business in 1999 and also operates a Renault approved repairer franchise, insists he is innocent and bought the car from another dealer in good faith.
Police are tracing a nationwide scam involving up to 150 stolen cars which have been given the same registration plate as legitimate vehicles, known as cloning.
He told Scotland's Sunday Mail newspaper: "They were interested in an Audi TT which I bought in good faith from a dealer in Leicester.
"I paid £20,000 for it and sold it to a customer in June. The police took away the paperwork in relation to that car and have recovered the Audi."
He has provided a replacement car for the customer, and said the business would take the £20,000 loss.
Wyper said officers told him two other motor retailers have been conned in the same way.
DATED: 03.09.08
FEED: AM
GM eyes return to profit in 2010
US car giant General Motors (GM) is hoping to return to profit in 2010, a top executive at the firm has said. In the past 18 months, GM has lost $57.5bn (£31.36bn), $15.5bn in the second quarter of 2008 alone. GM has closed factories and laid off staff but has struggled to counter a slowing economy and rising fuel prices. If GM continues to cut costs and car sales recover in 2010 "we would hope to have the corporation profitable again by then," vice chairman Bob Lutz said. But he added: "At this point, the future is so cloudy in terms of the development of the market, when it's going to pick up again." The company is losing money on all its model lines, Mr Lutz said. Prices for small, more fuel-efficient, cars should rise as demand grows, he added. Hummer slowdown High fuel costs have dampened demand for the large sports utility vehicles that GM is known for. The company has previously said it will consider selling the iconic Hummer brand. Among the mooted buyers are Russian Machines, the engineering firm which makes trains, planes and some automobile parts and Indian carmaker Mahindra & Mahindra. GM bought the Hummer brand in 1998. In June, Hummer sales were slightly over 2,000, well below their peak.
DATED: 03.09.08
FEED: AW
DATED: 03.09.08
FEED: AW
RMIF backs Motor Industry Code of Practice
The Retail Motor Industry Federation (RMIF) and its associations fully back the Motor Industry Code of Practice, launches to consumers on Friday (29 August 2008). The RMIF is among the industry stakeholders that have been involved in the creation of the new scheme. Ray Holloway, Director of the RMI Independent Garage Association (IGA) said: 'Improved standards of service and consumer care are best achieved through industry self regulation so the Motor Industry Code of Practice will be a great boon for the further development of our industry. The fact that the code is so affordable also makes it a "must-have" business tool.' Sue Robinson, Director of the RMI National Franchised Dealers Association (NFDA) agrees: 'The Motor Industry Code of Practice promotes and safeguards the interests of consumers by helping them identify subscribing businesses and providing an easily accessible and robust dispute resolution mechanism, should it be necessary. This will benefit the reliable and professional businesses that make up the vast majority in the sector. Robinson adds: 'The Code is the route to success for the motor industry.'
DATED: 03.09.08
FEED: AW
DATED: 03.09.08
FEED: AW
Autogas says LPG conversions are speeding up
Autogas, the leading automotive liquefied petroleum gas (LPG) supplier, is predicting that the number of LPG conversions will more than double this year. According to UKLPG, the number of LPG conversions carried out by LPGA Approved Installers stood at 12,500 last year, but Autogas National Marketing Coordinator, Chris Taylor, is certain that the number will rise in 2008. He says: "LPG is by far the most widely available alternative fuel available in the UK, although it is surprising that so few manufacturers are currently producing LPG vehicles1. However, converting a petrol powered vehicle to LPG can be quick and simple and can save up to 40 per cent on fuel costs. "Conversions should always be carried out by an LPGA approved installer and, as there are around 200 outlets currently registered in the UK, it is easy to find your nearest specialist - a full list can be found at www.autogas.ltd.uk ." Chris continues: "The cost to convert a vehicle to run on LPG is around £1,800 and based on current fuel prices and an annual mileage of 20,000 miles it would take around 22 months to recoup this initial cost."
DATED: 03.09.08
FEED: AW
DATED: 03.09.08
FEED: AW
Monday, September 01, 2008
Toyota cuts car sales forecasts
Japanese carmaker Toyota has cut its vehicle sales forecast for next year by nearly 7% as a result of demand softening in Western markets. It expects to sell 9.7 million vehicles in 2009, against an earlier forecast of 10.4 million. Last month, it cut its 2008 forecast to 9.5 million vehicles. High fuel prices and the credit crunch are making consumers less likely to buy a new vehicle. Toyota also said it would speed up development of fuel-efficient vehicles. Energy shiftAs energy prices rise, customers are moving away from gas-guzzlers, increasing the attraction of more energy-efficient models such as Toyota's Prius hybrid. "We are looking at the current shift towards fuel-efficient cars (in the United States) as a structural change in demand," Toyota President Katsuaki Watanabe told a news conference. "We intend to respond quickly and flexibly to this environment." The news of the changed forecast barely impacted Toyota's share price. "For the last few months, the company began to say its previous target was impossible and they've scaled back gradually, so everybody's used to the idea," said Nagayuki Yamagishi, strategist at Mitsubishi UFJ Securities.
DATED: 01.09.08
FEED: AM
DATED: 01.09.08
FEED: AM
HR Owen's prestige focus produces good results
HR Owen has posted improved profits for the first half of the year despite the challenge of a "worsening economic climate".
Profit before tax rose from £1.4 million in the first half of 2007 to £1.8m and operating profits were up from £1.8m to £2.2m.
Turnover was £95.9m compared to £94.9m for the first half of 2007.
J P Macarthur, HR Owen chairman, said: "The results for the first six months were strong, particularly in the circumstances of the challenging and worsening economic climate.
“The group's concentration on ultra luxury saloons and super sports car franchises protected the results to a degree from the real market conditions as our new car business has, and continues to be, able to rely on a number of forward orders."
Over recent years HR Owen has reduced its exposure to the volume brands and its last two franchises for Volvo are expected to be sold in "the near future".
Macarthur said new models introduced by the manufacturers it represents, like the Bentley Brooklands, Ferrari Scuderia, Maserati GranTurismo, helped to create good results for the group.
Despite taking strong forward orders, Macarthur still expects the overall market to weaken in the second half of this year.
HR Owen finished the six month period with a strong balance sheet including cash balances of £6.4 million, compared to £5.7m and as of June, 30 2007, the group had no net debt.
Macarthur said: "In January, we implemented a major de-stocking exercise for used vehicles. This has proved to be a good decision as used car activity at the top end of the market has been affected by the adverse economic conditions."
HR Owen's aftersales revenues and profits were at record levels following its "excellent vehicle sales results of the last two years", which have increased its vehicle parcs for the brands it represents.
DATED: 01.09.08
FEED: AM
Profit before tax rose from £1.4 million in the first half of 2007 to £1.8m and operating profits were up from £1.8m to £2.2m.
Turnover was £95.9m compared to £94.9m for the first half of 2007.
J P Macarthur, HR Owen chairman, said: "The results for the first six months were strong, particularly in the circumstances of the challenging and worsening economic climate.
“The group's concentration on ultra luxury saloons and super sports car franchises protected the results to a degree from the real market conditions as our new car business has, and continues to be, able to rely on a number of forward orders."
Over recent years HR Owen has reduced its exposure to the volume brands and its last two franchises for Volvo are expected to be sold in "the near future".
Macarthur said new models introduced by the manufacturers it represents, like the Bentley Brooklands, Ferrari Scuderia, Maserati GranTurismo, helped to create good results for the group.
Despite taking strong forward orders, Macarthur still expects the overall market to weaken in the second half of this year.
HR Owen finished the six month period with a strong balance sheet including cash balances of £6.4 million, compared to £5.7m and as of June, 30 2007, the group had no net debt.
Macarthur said: "In January, we implemented a major de-stocking exercise for used vehicles. This has proved to be a good decision as used car activity at the top end of the market has been affected by the adverse economic conditions."
HR Owen's aftersales revenues and profits were at record levels following its "excellent vehicle sales results of the last two years", which have increased its vehicle parcs for the brands it represents.
DATED: 01.09.08
FEED: AM
Blackmore joins HPI
Jonathan Blackmore, formerly consumer marketing manager at Experian, has joined rival HPI.
He has been appointed as marketing manager.
At Experian, Blackmore was responsible for the AA Car Data Check.
He launched the AutoCheck consumer product, as well as AA’s Vehicle Inspection product with Car Checkers.
Prior to that, he was marketing consultant with Provident Insurance, launching its motor insurance brand Yes Insurance.
Daniel Burgess, director of HPI said: "Jonathan’s marketing expertise, combined with his vision and understanding of the HPI brand, makes him the ideal person to build on our strong market position.
"This appointment is part of HPI’s ongoing development strategy, as we celebrate 70 years of success and look to future growth and expansion.
DATED: 01.09.08
FEED: AM
He has been appointed as marketing manager.
At Experian, Blackmore was responsible for the AA Car Data Check.
He launched the AutoCheck consumer product, as well as AA’s Vehicle Inspection product with Car Checkers.
Prior to that, he was marketing consultant with Provident Insurance, launching its motor insurance brand Yes Insurance.
Daniel Burgess, director of HPI said: "Jonathan’s marketing expertise, combined with his vision and understanding of the HPI brand, makes him the ideal person to build on our strong market position.
"This appointment is part of HPI’s ongoing development strategy, as we celebrate 70 years of success and look to future growth and expansion.
DATED: 01.09.08
FEED: AM
IMI consults industry on future of skills development
The Institute of the Motor Industry (IMI) is asking employers in the automotive sector for their views on the future of skills development.
The whole range of National Occupational Standards (NOS), which underpin all vocational qualifications in the automotive sector, are being revised and the IMI’s skills development team is coordinating a consultation process until the end of September.
Brand new qualifications will be introduced next year so the existing standards are being updated in conjunction with some 25 specialist working groups made up of representatives from all areas of the industry.
The IMI has also launched an online consultation process at www.motor.org.uk/nos for employers to give their feedback on the standards via its website. Alternatively, they can request the relevant documentation direct from the Institute.
Steve Scofield, IMI’s head of skills development, said: "Our revision of the NOS is a critical process for our sector as it will determine how new vocational qualifications will look for the next five years.
"It's vital that we get as many employers as possible to feed in to this consultation so that the IMI can ensure that, once developed, the qualifications are fit for purpose and valued by businesses."
Separately, the IMI is also inviting employers to respond to the Government's proposals to give employees in England a legal right to ask their employer for time to undertake the training they need to be more effective and productive at work.
The ‘Time to Train’ consultation, by the Department for Innovation, Universities and Skills, runs until September 10 and details of the proposals, together with the consultation response form, can be found at www.dius.gov.uk/consultations.
Under the proposals employees can request time to undertake formal training that leads to a qualification, or for informal unaccredited training that will help them to develop a specific skill relevant to their job. In both cases, the only requirement would be that training should help improve business performance and productivity.
DATED: 01.09.08
FEED: AM
The whole range of National Occupational Standards (NOS), which underpin all vocational qualifications in the automotive sector, are being revised and the IMI’s skills development team is coordinating a consultation process until the end of September.
Brand new qualifications will be introduced next year so the existing standards are being updated in conjunction with some 25 specialist working groups made up of representatives from all areas of the industry.
The IMI has also launched an online consultation process at www.motor.org.uk/nos for employers to give their feedback on the standards via its website. Alternatively, they can request the relevant documentation direct from the Institute.
Steve Scofield, IMI’s head of skills development, said: "Our revision of the NOS is a critical process for our sector as it will determine how new vocational qualifications will look for the next five years.
"It's vital that we get as many employers as possible to feed in to this consultation so that the IMI can ensure that, once developed, the qualifications are fit for purpose and valued by businesses."
Separately, the IMI is also inviting employers to respond to the Government's proposals to give employees in England a legal right to ask their employer for time to undertake the training they need to be more effective and productive at work.
The ‘Time to Train’ consultation, by the Department for Innovation, Universities and Skills, runs until September 10 and details of the proposals, together with the consultation response form, can be found at www.dius.gov.uk/consultations.
Under the proposals employees can request time to undertake formal training that leads to a qualification, or for informal unaccredited training that will help them to develop a specific skill relevant to their job. In both cases, the only requirement would be that training should help improve business performance and productivity.
DATED: 01.09.08
FEED: AM
New RMIF Garage Scheme
The RMIF is among the industry stakeholders that have been involved in the creation of the new scheme. Ray Holloway, Director of the RMI Independent Garage Association (IGA) said: ‘Improved standards of service and consumer care are best achieved through industry self regulation so the Motor Industry Code of Practice will be a great boon for the further development of our industry. The fact that the code is so affordable also makes it a “must-have” business tool.’ Sue Robinson, Director of the RMI National Franchised Dealers Association (NFDA), agrees: ‘The Motor Industry Code of Practice promotes and safeguards the interests of consumers by helping them identify subscribing businesses and providing an easily accessible and robust dispute resolution mechanism, should it be necessary. This will benefit the reliable and professional businesses that make up the vast majority in the sector.’
Robinson added: ‘The Code is the route to success for the motor industry.’
DATED: 01.09.09
FEED: RMI
Robinson added: ‘The Code is the route to success for the motor industry.’
DATED: 01.09.09
FEED: RMI
Lookers’ profits slip 28% in first half of 2008
UK’s fifth biggest car dealer group feels the pinch
Lookers’ profits slipped during the first half of the year despite gains in revenue, according to the group’s interim results.
Operating profit for the six months to the end of June dropped 5.2 per cent from £25m in 2007 to £23.7m, while revenue rose 18.2 per cent from £878.9m to £1,039m.
However, after deductions pre-tax profit slumped 28 per cent from £18.1m to £13m.
"The more turbulent macroeconomic environment has resulted in challenging trading conditions across the UK new and used car markets particularly in May and June and this has impacted the performance of our new and used car businesses,” said Ken Surgenor, Lookers chief executive.
"However, I am pleased to announce that against this tougher backdrop the group has delivered a solid performance for the period. Our diversified business model gives us the flexibility to adapt to the current uncertainties within the UK and global economies and our used car supermarkets and independent parts businesses are showing significant year on year progress," he said.
The board said it anticipates the full year results to be in line with the lower end of market expectations.
The group, number five in the Motor Trader Top 200, attributed the rise in revenue to its acquisition of Dutton Forshaw earlier this year.
While the Lookers' franchise network division was hit by the current economic climate, its other businesses performed well.
New car sales on a like for like basis were down by 6.5 per cent – dipping lower than the drop in national retail sales of 4.9 per cent.
Among the group's volume brands, Renault was hit hardest, dropping 14.9 per cent, while Lexus was the biggest casualty among its prestige brands will sales falling by 20.1 per cent.
Lookers did say, however, that it is confident it can adapt to the tough market conditions because of the flexibility of its business model.
It hopes to improve the performance of its franchise outlets by removing fixed costs of marginal satellite operations and redirecting the volume back to its main hub.
During this period the group has also reviewed dual franchising opportunities where the facilities are larger than the market opportunity for the existing franchise to share fixed costs.
The group said its used car supermarkets have continued to benefit from operational changes made last year including the closure of the Essex Trade Centre, trading profitably in the first six months of this year despite tough economic conditions.
The report also said Lookers' independent aftermarket parts division had a “solid” first half of 2008.
The group currently operates 139 franchise outlets across 31 brands.
DATED: 01.09.08
FEED: MT
Lookers’ profits slipped during the first half of the year despite gains in revenue, according to the group’s interim results.
Operating profit for the six months to the end of June dropped 5.2 per cent from £25m in 2007 to £23.7m, while revenue rose 18.2 per cent from £878.9m to £1,039m.
However, after deductions pre-tax profit slumped 28 per cent from £18.1m to £13m.
"The more turbulent macroeconomic environment has resulted in challenging trading conditions across the UK new and used car markets particularly in May and June and this has impacted the performance of our new and used car businesses,” said Ken Surgenor, Lookers chief executive.
"However, I am pleased to announce that against this tougher backdrop the group has delivered a solid performance for the period. Our diversified business model gives us the flexibility to adapt to the current uncertainties within the UK and global economies and our used car supermarkets and independent parts businesses are showing significant year on year progress," he said.
The board said it anticipates the full year results to be in line with the lower end of market expectations.
The group, number five in the Motor Trader Top 200, attributed the rise in revenue to its acquisition of Dutton Forshaw earlier this year.
While the Lookers' franchise network division was hit by the current economic climate, its other businesses performed well.
New car sales on a like for like basis were down by 6.5 per cent – dipping lower than the drop in national retail sales of 4.9 per cent.
Among the group's volume brands, Renault was hit hardest, dropping 14.9 per cent, while Lexus was the biggest casualty among its prestige brands will sales falling by 20.1 per cent.
Lookers did say, however, that it is confident it can adapt to the tough market conditions because of the flexibility of its business model.
It hopes to improve the performance of its franchise outlets by removing fixed costs of marginal satellite operations and redirecting the volume back to its main hub.
During this period the group has also reviewed dual franchising opportunities where the facilities are larger than the market opportunity for the existing franchise to share fixed costs.
The group said its used car supermarkets have continued to benefit from operational changes made last year including the closure of the Essex Trade Centre, trading profitably in the first six months of this year despite tough economic conditions.
The report also said Lookers' independent aftermarket parts division had a “solid” first half of 2008.
The group currently operates 139 franchise outlets across 31 brands.
DATED: 01.09.08
FEED: MT
Volkswagen overtakes Ford in car sales
Volkswagen overtook Ford in the first half of the year as the world's third-largest carmaker by vehicle sales, VW said in a statement on Thursday, in yet another sign of Detroit's waning influence. "We are delighted that the Volkswagen Group has made it to the global automobile industry's top three for the first time," Chief Executive Martin Winterkorn said in a statement. "This shows that we are on the right track with our ever-stronger international presence and, above all, our product programme. We will systematically push ahead with our growth course even in the present difficult market environment." Volkswagen wholesales that include those to dealers rose 7.2 percent in the first half to 3.31 million vehicles, while Ford's wholesales were almost 3.22 million. Ford's figure includes 125,000 units contributed by Jaguar and Land Rover until its sale to India's Tata Motors in early June. Wholesale figures can often be more flattering, since carmakers have been known to push dealers to accept more vehicles than they can sell to customers. Volkswagen usually bases its main monthly retail data on actual deliveries to customers, which in the first half rose by 5.8 percent to 3.27 million, suggesting dealer stocks rose on an absolute basis. Ford does not publish deliveries figures, using only wholesales since they are the basis for their ultimate revenues that are booked under their quarterly income statement. Although the figures underline the difficulties Ford is having in particular in the United States, the data is not entirely new, since both published results for the first half late in July.
DATED: 01.09.08
FEED: AW
DATED: 01.09.08
FEED: AW
Pendragon's profits plunge
Pendragon, Britain's largest car dealership group, slashed its dividend after revealing a sudden freefall in the sale and price of new and used vehicles during June, dragging pre-tax profit for the first six months of the year down by 37%. During June, Pendragon said wholesale used car prices witnessed 'the biggest single monthly reduction in over five years', in particular for large executive and off-road vehicles. The company also said that private sector registrations, which includes car sales to small businesses and individuals, slumped by 12% in June. Overall, in the first half to June 30, private sector registrations fell by 4.9% and, in particular, declined by 7.9% between April and June. Pendragon said: "This is a reflection of falling consumer confidence and consumers deferring vehicle purchases" . In contrast, demand for company cars increased, albeit at just 2%. Total pre-tax profit fell from £33.5 million in the first six months of last year to £21.1 million on revenue down 8.2% at £2.4 billion. Pendragon reduced its interim dividend from 2p last year to 0.5p. In the used car market, Pendragon said national activity slowed down in May as dealers prepared for the slower months ahead by buying in less stock.
DATED: 01.09.08
FEED: AW
DATED: 01.09.08
FEED: AW
