Tuesday, October 07, 2008
Carmakers call for sales help from Government
Carmakers are urging the UK Government to adopt radical, one-off stimulus measures to boost consumer confidence after another sharp drop in sales. New car sales figures from the Society of Motor Manufacturers for September, which were published yesterday (Monday, October 6), showed a 21% year-on-year fall in registrations. The plea came as Europe's motor industry called on the European Commission for €40 billion in loans and incentives aimed at re-animating the continent's plummeting car market. A number of UK-based car manufacturers have already announced production cutbacks as a result of falling sales at home and abroad. Automotive retail groups are also beginning to cut staff and close outlets in response to the sales decline. A survey by weekly publication Motor Trader has suggested that 40% of dealers expected to make redundancies this year. Fears are also growing among manufacturers that a substantial downturn in the UK automotive industry - Britain's biggest industry - will lead to the collapse of some companies in the supply chain. SMMT chief executive Paul Everitt said: "Unless confidence returns to the economy, it's going to be difficult to get people to buy high-ticket purchases." The SMMT is calling on Government to suspend fiscal rules, cut interest rates, reverse plans to increase Vehicle Excise Duty rates, put in place a United States-style stimulus package and boost demand for housing, among other policy measures aimed at reviving flagging consumer confidence. Carlos Ghosn, the chief of Renault and Nissan, has become the latest boss of a major carmaker to call for European governments to support the motor industry. He has echoed calls from colleagues made last week for government help to speed development of more fuel-efficient, low emission vehicles with 'soft loans' similar to those already pledged by the US Government to the tune of $25bn
DATED: 07.10.08
FEED: AW
DATED: 07.10.08
FEED: AW
Porsche plans new entry model with VW
Porsche is planning to work with Volkswagen on a new entry model for the group, according to the sports carmaker's finance chief Holger Härter. He says he is currently working on a proposal for a future entry model with finance colleagues at Volkswagen, to present to Volkswagen and Porsche management. He said: "I am convinced that we will find an amicable solution to managing both companies in the future. We will probably decide on this model this year." Last month, Porsche increased its stake in Volkswagen to 35%, giving it effective control of the company.
DATED: 07.10.08
FEED: AW
DATED: 07.10.08
FEED: AW
Tata moves Nano production to Gujarat
Tata Motors said Tuesday that it will shift production of the Nano to the western India state of Gujarat.
The new plant in Sanand, near Ahmedabad, will have a capacity of 250,000 cars per year, which can be increased to 500,000, the company said.Tata originally planned to build the low-cost Nano in Singur, West Bengal and launch the car this month. But last week the carmaker said it was pulling out after work on building a Nano plant was disrupted for more than a month by farmers unhappy with the compensation offered for their land.Tata Chairman Ratan Tata and other company officials signed an agreement with Gujarat Chief Minister Narendra Modi today.
The site in Gujarat is already under the possession of the state government.
DATED: 07.10.08
FEED: ANE
The new plant in Sanand, near Ahmedabad, will have a capacity of 250,000 cars per year, which can be increased to 500,000, the company said.Tata originally planned to build the low-cost Nano in Singur, West Bengal and launch the car this month. But last week the carmaker said it was pulling out after work on building a Nano plant was disrupted for more than a month by farmers unhappy with the compensation offered for their land.Tata Chairman Ratan Tata and other company officials signed an agreement with Gujarat Chief Minister Narendra Modi today.
The site in Gujarat is already under the possession of the state government.
DATED: 07.10.08
FEED: ANE
Ford gives parents Speed Control
US carmaker Ford will roll out a feature on 2010 models that can limit teen drivers to 80mph, using a computer chip in the key.
The system, only available in the US, will also give parents the option of programming their childrens’ keys to limit the volume of music and sound continuous alerts if the driver doesn't wear a seatbelt.
Jim Buczkowski, Ford's director of electronic and electrical systems engineering, said: "Our message to parents is, hey, we are providing you some conditions to give your new drivers that may allow you to feel a little more comfortable in giving them the car more often."
The feature, called MyKey, is limited at 80mph even though motorway speed limits are lower in most states because it wanted to leave a margin in case an unusual situation arises, Buczkowski said.
In some states, motorway speed limits are above 70mph.
DATED: 07.10.08
FEED: AM
The system, only available in the US, will also give parents the option of programming their childrens’ keys to limit the volume of music and sound continuous alerts if the driver doesn't wear a seatbelt.
Jim Buczkowski, Ford's director of electronic and electrical systems engineering, said: "Our message to parents is, hey, we are providing you some conditions to give your new drivers that may allow you to feel a little more comfortable in giving them the car more often."
The feature, called MyKey, is limited at 80mph even though motorway speed limits are lower in most states because it wanted to leave a margin in case an unusual situation arises, Buczkowski said.
In some states, motorway speed limits are above 70mph.
DATED: 07.10.08
FEED: AM
Used car sales boost for September market
Despite reports of plummeting car dealer confidence, used car prices at Manheim auctions rose in September for the first time in eight months.
Figures show that year-on-year values were up by £212 (3.5 per cent) to £6,280 and volumes rose by four per cent.Lower price brackets, generally made up of part-exchange vehicles, also saw increases with vales up by 3.6 per cent or £62 in August to £1,787.First-time auction conversion rates were also up from 69 per cent to 74 per cent, indicating dealers should be able to find buyers for their part-exchanges if realistically priced."There has undoubtedly been more activity in the wholesale market in September as dealers anticipated an upturn in demand following the holiday period," said Mike Pilkington, managing director of Manheim Auctions and Remarketing.
"However, we still need to be very cautious about any long term recovery at the moment."
DATED: 07.10.08
FEED: MT
Figures show that year-on-year values were up by £212 (3.5 per cent) to £6,280 and volumes rose by four per cent.Lower price brackets, generally made up of part-exchange vehicles, also saw increases with vales up by 3.6 per cent or £62 in August to £1,787.First-time auction conversion rates were also up from 69 per cent to 74 per cent, indicating dealers should be able to find buyers for their part-exchanges if realistically priced."There has undoubtedly been more activity in the wholesale market in September as dealers anticipated an upturn in demand following the holiday period," said Mike Pilkington, managing director of Manheim Auctions and Remarketing.
"However, we still need to be very cautious about any long term recovery at the moment."
DATED: 07.10.08
FEED: MT
LSUK in administration as 600 jobs go
LSUK, the car parts firm, has gone into administration and 600 people have been made redundant.
The announcement comes just five days after it was acquired by rival aftermarket firm Euro Car Parts.
ECP said the initial acquisition was made quickly to protect the 600 staff employed by LSUK, with it paying the due salaries and rent with immediate effect.
The company, however, was in a worse predicament than ECP had known.
ECP purchased LSUK for an undisclosed sum that a spokesman said would probably not be recovered.
"I don't think it was purchased for a huge amount because LSUK was obviously in trouble, but I think it's safe to say that Euro Car Parts has lost a lot of money in the past few days," the spokesman said.
"The problem was that LSUK was more poorly than they thought it was - they didn't want it to affect the Euro Car Parts business, which is doing very well."
ECP said the administrators, Tenon Recovery, was already in contact with several interested parties.
The acquisition included all 53 LSUK branches, including MT Diesel Products, Protech Automotive and Yeovil Rewind.
DATED: 07.10.08
FEED: MT
The announcement comes just five days after it was acquired by rival aftermarket firm Euro Car Parts.
ECP said the initial acquisition was made quickly to protect the 600 staff employed by LSUK, with it paying the due salaries and rent with immediate effect.
The company, however, was in a worse predicament than ECP had known.
ECP purchased LSUK for an undisclosed sum that a spokesman said would probably not be recovered.
"I don't think it was purchased for a huge amount because LSUK was obviously in trouble, but I think it's safe to say that Euro Car Parts has lost a lot of money in the past few days," the spokesman said.
"The problem was that LSUK was more poorly than they thought it was - they didn't want it to affect the Euro Car Parts business, which is doing very well."
ECP said the administrators, Tenon Recovery, was already in contact with several interested parties.
The acquisition included all 53 LSUK branches, including MT Diesel Products, Protech Automotive and Yeovil Rewind.
DATED: 07.10.08
FEED: MT
Volvo not for sale says Odell
Brit Steve Odell is the first non-Swede at the helm of Volvo Car Corporation, and despite the rumours, he insists he has not been put in place by his Ford bosses to get the company ready for sale.
He believes the Volvo brand is undervalued and needs time to show just what it can do. "I am an old fashioned sales guy," he said at the Paris Motor Show.
"All I want is for Volvo to have an unfair share of whatever the market is. My brief is to get Volvo back to sustainable profitability"
He admits Volvo, which is owned by Ford, is some way short of meeting its previously announced target of volumes in excess of 600,000 cars a year globally.
This year, he says, it will probably fall short of 400,000, down from around 440,000 in 2007.
Getting back to profitability is inevitably going to involve some pain, he said. The company already announced 2,000 job losses in June and a further 900 three weeks ago.
Odell, officially just two days into his new job as Volvo boss, said he will be looking at the cost base over the next month.
"We will be in a position to make further announcements at the end of October," he said.
He is not daunted by being the first foreigner in charge of the company.
He added: "Volvo is a national treasure and the decisions we make have to be good for the company and Sweden. In fact I have even asked the Swedish government how they feel about a Brit being in charge.
"If they thought it was a problem then I would have had to have a good, long look at what that meant."
Where does he see the brand going? Odell said: "Volvo cannot abandon safety as a key brand value and the environment is key - that's not just a marketing term, in Sweden it's a base assumption."
DATED: 07.10.08
FEED: MT
He believes the Volvo brand is undervalued and needs time to show just what it can do. "I am an old fashioned sales guy," he said at the Paris Motor Show.
"All I want is for Volvo to have an unfair share of whatever the market is. My brief is to get Volvo back to sustainable profitability"
He admits Volvo, which is owned by Ford, is some way short of meeting its previously announced target of volumes in excess of 600,000 cars a year globally.
This year, he says, it will probably fall short of 400,000, down from around 440,000 in 2007.
Getting back to profitability is inevitably going to involve some pain, he said. The company already announced 2,000 job losses in June and a further 900 three weeks ago.
Odell, officially just two days into his new job as Volvo boss, said he will be looking at the cost base over the next month.
"We will be in a position to make further announcements at the end of October," he said.
He is not daunted by being the first foreigner in charge of the company.
He added: "Volvo is a national treasure and the decisions we make have to be good for the company and Sweden. In fact I have even asked the Swedish government how they feel about a Brit being in charge.
"If they thought it was a problem then I would have had to have a good, long look at what that meant."
Where does he see the brand going? Odell said: "Volvo cannot abandon safety as a key brand value and the environment is key - that's not just a marketing term, in Sweden it's a base assumption."
DATED: 07.10.08
FEED: MT
A&L Fined £7m for PPI failings
The Financial Services Authority (FSA) has fined Alliance & Leicester Plc (A&L) £7 million for serious failings in its telephone sales of payment protection insurance (PPI).
For three years from January 2005 to December 2007 A&L sold approximately 210,000 PPI policies to customers seeking a personal loan at an average price of £1,265, but there was a general failure by advisers to give customers details of the cost of PPI.
In addition A&L sought to find reasons to sell PPI without properly considering what customers needed. A&L did not make it sufficiently clear that PPI was optional and it trained its staff to put pressure on customers where they queried the inclusion of PPI in their quotation or challenged advisers’ recommendations.
These failings resulted in unacceptable levels of non-compliant sales and a high risk of unsuitable sales over the three year period. Margaret Cole, FSA Director of Enforcement, said: “The failings at A&L are the most serious we have found. This is reflected in the record PPI fine. It is very disappointing that after three years of regulation we are still finding serious problems in PPI sales. “This case shows that we will continue to step up the action we take when firms do not sell PPI properly. Customers should be able to rely on impartial advice based on their individual needs and demands. It is particularly unacceptable for a firm to train its advisers to put pressure on customers when recommending insurance cover which they have not asked for and may not need. Firms cannot rely on paperwork sent out later as an excuse for unclear or misleading statements given on the telephone. “As we said in our recent update on our PPI work, firms must ensure their PPI sales processes are up to the required standards. They must change their behaviour where necessary and if they are either unwilling or unable to sell this product in a compliant way, making sure that customers are treated fairly, they should not be selling it at all.” A&L has agreed to implement a substantial and comprehensive customer contact programme, overseen by third party accountants. It will write to all customers who took out policies by telephone in conjunction with an unsecured loan between 14 January 2005 and 31 December 2007 prompting them to review their policy against product information sent to them. It will also review any relevant rejected complaints and claims and has committed to pay redress where appropriate.
This remedial action has been taken into account by the FSA and has reduced the level of penalty which would otherwise have been imposed on the firm. In addition, A&L qualified for a 30% reduction in penalty by settling at an early stage of the FSA's investigation.Were it not for this discount, the FSA would have imposed a financial penalty of £10 million.
DATED: 07.10.08
FEED: IUK
For three years from January 2005 to December 2007 A&L sold approximately 210,000 PPI policies to customers seeking a personal loan at an average price of £1,265, but there was a general failure by advisers to give customers details of the cost of PPI.
In addition A&L sought to find reasons to sell PPI without properly considering what customers needed. A&L did not make it sufficiently clear that PPI was optional and it trained its staff to put pressure on customers where they queried the inclusion of PPI in their quotation or challenged advisers’ recommendations.
These failings resulted in unacceptable levels of non-compliant sales and a high risk of unsuitable sales over the three year period. Margaret Cole, FSA Director of Enforcement, said: “The failings at A&L are the most serious we have found. This is reflected in the record PPI fine. It is very disappointing that after three years of regulation we are still finding serious problems in PPI sales. “This case shows that we will continue to step up the action we take when firms do not sell PPI properly. Customers should be able to rely on impartial advice based on their individual needs and demands. It is particularly unacceptable for a firm to train its advisers to put pressure on customers when recommending insurance cover which they have not asked for and may not need. Firms cannot rely on paperwork sent out later as an excuse for unclear or misleading statements given on the telephone. “As we said in our recent update on our PPI work, firms must ensure their PPI sales processes are up to the required standards. They must change their behaviour where necessary and if they are either unwilling or unable to sell this product in a compliant way, making sure that customers are treated fairly, they should not be selling it at all.” A&L has agreed to implement a substantial and comprehensive customer contact programme, overseen by third party accountants. It will write to all customers who took out policies by telephone in conjunction with an unsecured loan between 14 January 2005 and 31 December 2007 prompting them to review their policy against product information sent to them. It will also review any relevant rejected complaints and claims and has committed to pay redress where appropriate.
This remedial action has been taken into account by the FSA and has reduced the level of penalty which would otherwise have been imposed on the firm. In addition, A&L qualified for a 30% reduction in penalty by settling at an early stage of the FSA's investigation.Were it not for this discount, the FSA would have imposed a financial penalty of £10 million.
DATED: 07.10.08
FEED: IUK
Euro Car Parts does U Turn on LSUK
Independent motor parts supplier Euro Car Parts (ECP) has closed down rival LSUK less than a week after acquiring it.
The move is completely unexpected after ECP chairman Sukhpal Singh told AM just last week that he expected to restore the LSUK business to profit within months.
However, LSUK staff that turned up for work this morning found themselves locked out with a notice on the door telling them the company had ceased trading.
The notice, which has been posted at its 53 branches nationwide, said: "It is with great regret and due to unforeseen and exceptional circumstances beyond our control that with effect from Monday 6 October this branch will cease to trade."
In a statement ECP said: “Unfortunately, it became clear, very quickly, that it was simply going to be impossible to continue with investment without the required support, which was not forthcoming.
"After a considerable amount of non-stop work and investment into LSUK over the past five days, the ECP directors realised that they had no option but to place LSUK into administration with immediate effect."
Administrators Tenon Recovery is now looking for another buyer and already has “several interested parties”.
DATED: 07.10.08
FEED: AM
The move is completely unexpected after ECP chairman Sukhpal Singh told AM just last week that he expected to restore the LSUK business to profit within months.
However, LSUK staff that turned up for work this morning found themselves locked out with a notice on the door telling them the company had ceased trading.
The notice, which has been posted at its 53 branches nationwide, said: "It is with great regret and due to unforeseen and exceptional circumstances beyond our control that with effect from Monday 6 October this branch will cease to trade."
In a statement ECP said: “Unfortunately, it became clear, very quickly, that it was simply going to be impossible to continue with investment without the required support, which was not forthcoming.
"After a considerable amount of non-stop work and investment into LSUK over the past five days, the ECP directors realised that they had no option but to place LSUK into administration with immediate effect."
Administrators Tenon Recovery is now looking for another buyer and already has “several interested parties”.
DATED: 07.10.08
FEED: AM
No problems in claiming back duty
Changes in VED refunds from January 1, 2009 won’t prevent dealers from claiming back vehicle excise duty refunds on part-exchanges.
The advice comes from Deloitte tax specialist Steve Holloway. He said: “We’ve spoken to several dealers. None of them have experienced problems in claiming back the VED.”
AM first reported on April 4 that the government planned to restrict VED refunds to registered keepers and allow them only when the vehicle had been stolen, destroyed, sold or declared SORN.
Dealers are not restricted but accountants Trevor Jones has warned that it may take up to four weeks to receive payment after a vehicle has been declared SORN.
Dealers can still use trade plates on second-hand cars
Car dealers will still be able to use trade plates on their second-hand and will not be required to register ownership of vehicles while they are on their site.
Sue Robinson, RMIF director, said: “The introduction of new rules on VED refunds in January 2009 will not prevent dealers from using trade plates on second hand stock for which they have completed a SORN. However, dealers must remember that trade plates can only be used on vehicles in their temporary possession. A vehicle registered in their name is not regarded as being in their temporary possession.”
For dealers, the main impact of the new rules will be that they will not be able to obtain VED refunds from vehicles where a SORN is in force. Instead the customer will be required to seek the refund themselves.
DATED: 07.10.08
FEED: AM
The advice comes from Deloitte tax specialist Steve Holloway. He said: “We’ve spoken to several dealers. None of them have experienced problems in claiming back the VED.”
AM first reported on April 4 that the government planned to restrict VED refunds to registered keepers and allow them only when the vehicle had been stolen, destroyed, sold or declared SORN.
Dealers are not restricted but accountants Trevor Jones has warned that it may take up to four weeks to receive payment after a vehicle has been declared SORN.
Dealers can still use trade plates on second-hand cars
Car dealers will still be able to use trade plates on their second-hand and will not be required to register ownership of vehicles while they are on their site.
Sue Robinson, RMIF director, said: “The introduction of new rules on VED refunds in January 2009 will not prevent dealers from using trade plates on second hand stock for which they have completed a SORN. However, dealers must remember that trade plates can only be used on vehicles in their temporary possession. A vehicle registered in their name is not regarded as being in their temporary possession.”
For dealers, the main impact of the new rules will be that they will not be able to obtain VED refunds from vehicles where a SORN is in force. Instead the customer will be required to seek the refund themselves.
DATED: 07.10.08
FEED: AM
Dealerships close after tough September
Reports are coming in of several franchised dealerships closing after a 21.2% drop in national new car registrations in September.
Businesses affected include Streets Skoda, William A Lewis Volvo, Caffyns Vauxhall and Lookers Jaguar/Land Rover.
Lookers closed its Bury St Edmunds Jaguar and Land Rover dealership on Wednesday and made eight sales staff redundant.
Jobs lost
Workshop and bodyshop staff were told to report to a nearby Ford dealership owned by Marshall Motor Group, which Lookers hopes will buy the premises.
Streets Skoda in Bristol closed on Wednesday with the loss of 18 jobs.
Caffyns announced the closure of its Tonbridge Vauxhall dealership, and said it would try to find jobs elsewhere in the group for its 17 staff.
September registrations down to 330,295 units
William A Lewis announced on Wednesday it closes its Volvo dealership in Telford on October 31, and is integrating the business into its Shewsbury site.
Four workers were made redundant, but eight have been given alternative posts.
AM understands that September's national registrations was around 329,000, a drop of 91,000 cars against the same month in 2007.
DATED: 07.10.08
FEED: AM
Businesses affected include Streets Skoda, William A Lewis Volvo, Caffyns Vauxhall and Lookers Jaguar/Land Rover.
Lookers closed its Bury St Edmunds Jaguar and Land Rover dealership on Wednesday and made eight sales staff redundant.
Jobs lost
Workshop and bodyshop staff were told to report to a nearby Ford dealership owned by Marshall Motor Group, which Lookers hopes will buy the premises.
Streets Skoda in Bristol closed on Wednesday with the loss of 18 jobs.
Caffyns announced the closure of its Tonbridge Vauxhall dealership, and said it would try to find jobs elsewhere in the group for its 17 staff.
September registrations down to 330,295 units
William A Lewis announced on Wednesday it closes its Volvo dealership in Telford on October 31, and is integrating the business into its Shewsbury site.
Four workers were made redundant, but eight have been given alternative posts.
AM understands that September's national registrations was around 329,000, a drop of 91,000 cars against the same month in 2007.
DATED: 07.10.08
FEED: AM
Renault still courts US alliance
Renault still wants to cut a deal with a US carmaker.
The French company which owns Nissan of Japan, believes an alliance with a US manufacturer would create a global company which would be hard to beat.
Renault Executive vice president and leader in Europe, Patrick Pelata, who headed up the abortive 2006 discussions with GM, said at the Paris Motor Show that he believed a company with Japanese, European and American DNA would beat the world's no.1, Toyota.
"There are great people at GM and together we could do great things for sure but you have to have the will to be part of a global alliance and that was not embedded in GM in 2006," he said.
Mr Pelata said he was a long time admirer of Toyota, which had a purely Japanese way of working and while its planning, manufacturing, quality and customer services were good they were not always excellent and it did not have a European or American DNA which added other abilities to their business.
He ruled out an immediate return to the US market by Renault and said it saw greater opportunities in China and India, even Brazil, before the American market.
Mr Pelata said the automotive industry was facing enormous challenges but Renault believed the future opportunities would be shaped by the introduction of purely electrical cars using lithium-ion batteries.
By 2015, he said, about 30 percent of Renault's main customer base could switch to battery power for weekly commuting.
Electric power has strongest appeal to what Mr. Pelata called "the balanced greens" - people who sought a serene lifestyle and an attribute which also encompasses some of Renault's traditional virtues but brought up to date.
DATED: 07.10.08
FEED: MT
The French company which owns Nissan of Japan, believes an alliance with a US manufacturer would create a global company which would be hard to beat.
Renault Executive vice president and leader in Europe, Patrick Pelata, who headed up the abortive 2006 discussions with GM, said at the Paris Motor Show that he believed a company with Japanese, European and American DNA would beat the world's no.1, Toyota.
"There are great people at GM and together we could do great things for sure but you have to have the will to be part of a global alliance and that was not embedded in GM in 2006," he said.
Mr Pelata said he was a long time admirer of Toyota, which had a purely Japanese way of working and while its planning, manufacturing, quality and customer services were good they were not always excellent and it did not have a European or American DNA which added other abilities to their business.
He ruled out an immediate return to the US market by Renault and said it saw greater opportunities in China and India, even Brazil, before the American market.
Mr Pelata said the automotive industry was facing enormous challenges but Renault believed the future opportunities would be shaped by the introduction of purely electrical cars using lithium-ion batteries.
By 2015, he said, about 30 percent of Renault's main customer base could switch to battery power for weekly commuting.
Electric power has strongest appeal to what Mr. Pelata called "the balanced greens" - people who sought a serene lifestyle and an attribute which also encompasses some of Renault's traditional virtues but brought up to date.
DATED: 07.10.08
FEED: MT
Vauxhall hurt by falling pound
There are plenty of financial problems around at the moment but the one taxing Vauxhall in the UK right now is the fall of the pound against the euro.
It is making manufacturing at the company's Ellesmere Port plant very expensive and it's a headache for parent company General Motors and its chief financial officer Fritz Henderson.
"It's something we have to live with but we have made a commitment to manufacturing in the UK and right now the depreciation of the pound is hurting us," said Henderson.
Most of the suppliers to the Ellesmere Port factory are based in Europe and buying from them in euros is costing a lot more than it did a year ago when the pound was worth €1.40 - it's currently down to around €1.20.
Speaking at the Paris motor show Henderson added: "There is now a significant imbalance in the pound/euro and I would say that's our biggest single challenge in the UK.
"We adjusted the prices of our cars but in these financially difficult times there is only so far you can go with that." He said there was no immediate threat to production, however.
DATED: 07.10.08
FEED: MT
It is making manufacturing at the company's Ellesmere Port plant very expensive and it's a headache for parent company General Motors and its chief financial officer Fritz Henderson.
"It's something we have to live with but we have made a commitment to manufacturing in the UK and right now the depreciation of the pound is hurting us," said Henderson.
Most of the suppliers to the Ellesmere Port factory are based in Europe and buying from them in euros is costing a lot more than it did a year ago when the pound was worth €1.40 - it's currently down to around €1.20.
Speaking at the Paris motor show Henderson added: "There is now a significant imbalance in the pound/euro and I would say that's our biggest single challenge in the UK.
"We adjusted the prices of our cars but in these financially difficult times there is only so far you can go with that." He said there was no immediate threat to production, however.
DATED: 07.10.08
FEED: MT
RMIF clarifies SORN confusion
Car dealers will still be able to use trade plates on their second-hand stock following the introduction of new rules on the treatment of part-exchanges and pre-registered dealer demonstrators, and will not be required to register ownership of vehicles while they are on their site, the Retail Motor Industry Federation (RMIF) has revealed. Sue Robinson, RMIF Director, explains: 'The introduction of new rules on Vehicle Excise Duty (VED) refunds in January 2009 will not prevent dealers from using trade plates on second hand stock for which they have completed a Statutory Off The Road (SORN) declaration. However, dealers must remember that trade plates can only be used on vehicles in their temporary possession. A vehicle registered in their name is not regarded as being in their temporary possession.' There was some concern among dealers, as one interpretation of the new rules was that dealers would need to become the registered keeper of a vehicle, and then make a SORN declaration, in order to obtain a VED refund. This is not the case. For dealers, the main impact of the new rules will be that they will not be able to obtain VED refunds from vehicles where a SORN is in force. Instead the customer will be required to seek the refund themselves. Robinson continues: 'Where a customer trades in a car and applies for a refund themselves, they should notify the Driver and Vehicle Licensing Agency (DVLA) that the vehicle has been disposed of into the trade rather than declare SORN. The vehicle can then quite legally be used under trade plates.' RMIF members that want more information on this issue should contact the RMIF
DATED: 07.10.08
FEED: AW
DATED: 07.10.08
FEED: AW
New car registrations plummet 21%
New UK car registrations fell 20% in September, the Society of Motor Manufacturers and Traders (SMMT) has announced. This is the fifth consecutive month that the SMMT has reported falls in new car registrations. In further evidence that the current financial crisis is hitting the wider economy, year-to-date registrations are down 7.5%. The SMMT is urging the government to take action to restore confidence.
DATED: 07.10.08
FEED: AW
DATED: 07.10.08
FEED: AW
Friday, October 03, 2008
FLA and RMIF agree Memorandum of Understanding
The Finance and Leasing Association (FLA) and the Retail Motor Industry Federation (RMIF) have agreed a Memorandum of Understanding on asset registration to assist their members.
The Memorandum, which comes into effect on 1 October 2008, promotes the prompt and accurate registration of vehicles with Asset Registration Agencies by finance companies and motor dealerships. It also introduces a resolution procedure to guide members in the event of a dispute.
FLA Director General Stephen Sklaroff said:
"The FLA is committed to timely and accurate asset registration. The recording of lenders' financial interests with Agencies means their valuable assets are protected. This is particularly important in the current climate. I am pleased that we are working closely with the RMIF on an issue which is of great importance to members of both organisations."
RMIF Director Sue Robinson added:
"The Memorandum will give added security to dealers on asset registration. The RMIF encourages all of its members to provide full and accurate descriptions whenever registering vehicles. Dealers should contact their preferred Asset Registration Agency to learn more."
DATED: 03.10.08
FEED: AW
Jaguar and Land Rover announce more production cuts
Jaguar and Land Rover are cutting production at three of their UK plants due to falling demand.
Jaguar's Halewood plant in the north of England will cease production for a week starting October 27 because of falling demand for the X-Type and Land Rover Freelander models built there.
While Jaguar's European sales increased to 24,600 from 21,100 compared with the same period last year, reports said X-Type sales fell to 8,292 units from 9,363.
Land Rover sales were down across the board, with overall registrations falling to 54,261units from 63,669 in the first eight months and Freelander sales dropping to 21,935 from 24,999.
The brands are also cutting production at their Solihull factory, near Birmingham, from two shifts to one and the factory's scheduled shutdown at the end of October has been increased from one week to two.
Castle Bromwich, where the XJ upper-premium sedan and XK premium roadster are built, will have one non-production day per week.
DATED: 03.10.08
FEED: AW
Motor World calls in Administrators
Motor World, the car care retail chain, has been placed into administration following a significant downturn in sales, resulting in 95 site closures and 300 redundancies.
BDO Stoy Hayward, the appointed administrators, have successfully managed to sell the remaining 142 sites to Pacific Retail, a company funded by the existing investors Bailey Capital, saving 500 jobs.
Some of Motor World's retail units were trading at a direct loss.
"Despite a strong trading name and presence on the high street, Motor World Ltd has been a direct casualty of the credit retail difficulties and the continuing squeeze on available credit," said Dermot Power, business restructuring partner at BDO.
Bailey Capital's Martin Waite said: "We remain acutely aware that difficult trading conditions will undoubtedly continue; but remain hopeful that we can move the business forward."
DATED: 03.10.08
FEED: MT
Automotive Industry set for 'Profound Change'
Thee automotive industry is set for a period of "profound shifts and challenges", according to a study by PricewaterhouseCoopers.
Increasing fuel costs, CO2 emissions reductions, fluctuating exchange rates, shifts in consumer behaviour and a challenging economic climate are just some of the issues facing the automotive industry the latest PricewaterhouseCoopers report Global Automotive Perspectives 2008 found.
"The outlook for the global automotive market is challenging to say the least. Manufacturers and suppliers need to be preparing themselves to survive the intensity of competitive pressures," said Philippe Vincent, PwC partner.
"Great opportunities exist for the automakers and suppliers who will be able to deliver solutions to this structural industry transformation.
"A clear challenge lies in the ability of western automakers to adapt to the clear dichotomy existing between the established, mature markets and emerging markets."
PwC said a successful strategy for carmakers would be to adopt separate approaches to the two markets and establish themselves securely in mature markets before moving onto emerging ones.
The report said the approach should be adopted quickly as PwC predicted that from 2007 to 2015 emerging markets will represent 18 times the estimated growth in light vehicle assembly than mature ones.
"In mature markets, it is about managing what goes on beneath a static surface -- in emerging markets' dynamic environments, companies must strategically position themselves to benefit from growth opportunities," said a PwC spokesman.
"Those managing location issues with the concomitant capacity, together with a product portfolio that addresses anomalous market needs at the most attractive cost, will profit from the challenging global environment."
The report also found that despite its falling sales in the US and Europe, Toyota was currently executing the most balanced global strategy.
By 2015, PwC forecast Toyota to remain the leading global alliance group with a forecast light vehicle output of 11.3 million.
General Motors will experience the next biggest rise due to its success in quickly establishing a strong presence in several emerging markets.
The Renault-Nissan alliance, which PwC predicted would move from fifth in the rankings to third, due to to its large stake in AvtoVAZ and the continuing success of its Logan line of low-cost vehicles.
DATED: 03.10.08
FEED: MT
