Saturday, October 11, 2008
Rolls on a roll as it beats the credit crunch
The credit crunch appears to be bypassing Rolls-Royce, which is seeing sales soar and is recruiting more workers.
Last month, Rolls-Royce delivered 129 cars, up 7.5% on 12 months ago and marking a 42.8% rise in deliveries since the start of the year to 827 cars.
Emerging economies, such as India, where Rolls-Royce opened a second showroom this year, continue to be the company's best markets. In addition, demand in the Middle East continues to be buoyant.
The size of the manufacturer's current order book has not been disclosed, but the company said that it remained confident about the future.
Underlining that confidence is the fact that at last week's Paris Motor Show the company confirmed that a £170,000 'baby' Rolls-Royce would go into production and enter showrooms in 2010.
And a further indication has come with confirmation that the Goodwood-based carmaker has hired 200 additional staff this year and will add a further 200 jobs in 2009.
Other luxury car manufacturers, including Ferrari and Lamborghini, are also seeing sales rise.
Rolls-Royce chief executive Tom Purves commenting on the economic situation said: "We've had a very good year. Nobody's immune, and we certainly don't think we're immune, but we do think we have a certain degree of insulation."
Aston Martin to sell shares in the Middle East
Aston Martin, the sports carmaker controlled by Kuwait's Investment Dar, plans to sell shares in a new Middle East company, which could be later listed.
Ulrich Bez, chief executive of Aston Martin, would own a majority stake in the new company, while the rest of the shares would be sold to investors in the Gulf in a private placement worth 500 million dinars (£980m).
The new company, which will help revamp Aston Martin's operations in the Gulf, could be listed after three years depending on market regulations.
In tough times, its the survival of the fittest
When times are tough, only the fittest survive. We’re seeing that in the world’s banking markets and we’ll see it in the motor industry too.
It’s only a few short years since MG Rover went belly up and many pundits reckon we’ll see more casualties before we stop hearing the words ‘credit crunch’ on every other news bulletin.
Barely a day goes by when we don’t hear of jihad at GM, crisis at Chrysler or a slump in sales. It’s small wonder people building, selling and servicing cars are worried for their jobs.
Some may sink, but others will swim. After all, hardship breeds ingenuity. Just flick through the history books and see who’s pulled off a blinder when their backs are against the wall.
Ford memorably banished memories of the woeful Escort with the feisty Focus Mk1. Chrysler has frequently pulled itself out of a hole with sexy or ingenious products like the 300C hot rod or Voyager minivan.
And then there’s Lotus, which wouldn’t be here today were it not for the timeless appeal of the Elise.
These were companies playing brinkmanship with financial meltdown which fought back with sensational new products.
And at the end of the day, that’s the only answer to the problems besetting today’s industry.
Where are the saviour cars of 2008?
There aren’t many about. The only model at next month’s Paris Motor Show with any chance of saving the ranch is the Chevrolet Volt – one of the first production plug-in hybrids, that could just redefine modern transport and pull GM out of a rather big hole.
Forget propping up stuttering factories with government subsidies – the great leveller of the modern marketplace is the quality of your wares. Cars people want will sell; duds won’t.
That’s always been true, but never truer than when times are tight.
DATED: 11.10.08
FEED: AM
Fords LeClair makes way for Booth
In a statement, Ford said Leclair and Booth will work together over the next few weeks to make sure there's a smooth transition. Leclair, 56, joined Ford in 1976. He was named executive vice president and CFO in August 2003.
Booth, 59, takes over as CFO amid one of the worst financial crises in recent history.
Ford's stock has been in a virtual free-fall with the rest of the stock markets for the past week, trading near historic lows. As recently as last month, stock traded for more than $5 a share but today were trading as low as $2.05
Skoda site in Bristol shuts
The site, in Albert Road, near St Philip's Causeway, was the only representation for the brand in that area and a spokeswoman for the carmaker said Skoda had been talking to parties interested in taking up the brand there. "It's obviously a strategic location for Skoda, so we've been in contact with half a dozen interested parties," she said. Clist and Rattle Skoda of Flax Burton has taken in cars ordered by customers in the meantime, though dealer principal Paul Clist said they would be unable to hand any of the vehicles over until certain legalities have been ironed out. "We're still not sure who they belong to," he said. A spokesman from BDO Stoy Hayward, a business services firm, confirmed that while BDO was assisting Streets directors, it had not been appointed as administrator. Clist emphasised Clist and Rattle had been working hard with Skoda to make sure no customers lost their money and that they were trying to resolve the situation as quickly as possible. DATED: 11.10.08 FEED: MT |
Streets Skoda in Bristol has shut, resulting in the loss of 18 jobs.Ford appoints new UK directors
Simpson has taken the role from Mark Ovendon, who has moved to Russia as marketing, sales and service director. Simpson came to the job from his position as marketing communications director for Ford of Europe. He previously held senior management positions in the US for six years, most recently as Lincoln Mercury's regional manager in New York, and before that he was managing director of Ford Hungary. Prior to leading sales teams for five years in the eastern district and Scotland, Northern Ireland and the north, Barratt was Ford Focus brand manager. Roelant de Waard, Ford of Britain chairman and managing director, said: "Mark and Andy bring a wealth of experience both internationally and from other functions within the company." DATED: 11.10.08 FEED: MT |
Ford of Britain has appointed two new directors.Pelata becomes Ghosns No 2
The appointment will free Renault-Nissan CEO Carlos Ghosn to concentrate on the French carmaker's strategic decision-making, as well as finance and public affairs activities.
In the newly-created post, Pelata, 53, will have authority over all members of Renault's executive committee, as well as the leaders of its various regional management groups.
At Nissan, Ghosn appointed Toshiyuki Shiga in 2005 to hold a similar chief operating officer post to the one Pelata will assume October 13.
Pelata's promotion is the latest step up the corporate ladder for the 24-year Renault veteran
Fords warning shot for Contract Hire firms
Ford has warned contract hire companies that it is keeping a close eye on websites which advertise heavily discounted new cars and will terminate deals with any companies that are illegally selling on vehicles.
The carmaker audited its fleet business last year after discovering that some contract hire companies were offering cars for sale on discount websites within three months of purchase.
Companies were typically operating fleets of around 500 vehicles.
In some cases, an individual in the business had taken the decision to sell on cars; in other instances, it had been company strategy to sell on cars at profit.
Although the practice is illegal, Ford decided not to take legal action.
It recovered the cars and ended the deal.
“It isn’t worth taking it any further,” added de Waard.
“The problem will continue to pop up here and there.
"It is important that we prevent it because they are competing with our retail sales and using special terms.
“It’s not good for our business or for our dealers’ businesses and it’s illegal.”
However, de Waard said the practice raised an interesting consideration about added value services, pointing to experiences in the commercial vehicle sector.
“What’s the value that people are getting from using intermediaries?” he asked.
“If it’s only a lower price, then there is no value, but if it is a certain service, for example helping people to identify the manufacturers with the best financial services offer on short leases, then it might have a place in the market.
“Sometimes it’s a specialist function for finding the right vehicle at the right price – something the network doesn’t do everyday. We will need to look at whether our leasing products are perfectly suited to this.”
DATED: 11.10.08
FEED: AM
Falling sales halt car production
The Vauxhall car plant in Cheshire is to stop production for 14 days this month due to falling sales in Europe.
Vehicles will not be made at the Ellesmere Port plant for two days this week and next week, and will also shut for two working weeks from 20 October.
A spokesman for parent company General Motors (GM) said the stoppages were to accommodate changes in demand.
Jaguar Land Rover announced last month its Halewood plant in Merseyside would close for a week after orders fell.
A GM statement said: "General Motors Europe is carefully watching the development of the various car and van markets in Europe so that we can react quickly and efficiently to changes in demand.
"This way, we can increase production in times of rising demand, as we did this year when we added extra shifts to accommodate markets in Eastern Europe."
She added: "It follows, then, that in markets in which demand is reducing, in this case due to the current European economic situation, we must also adjust production.
"This flexibility is a strategy that shows GM Europe has learned from the past and will not simply keep building cars or vans for stock in changing markets."
A spokesman for the Unite union said the 2,200 workers at the plant would still get paid despite the stoppages.
Volvo to axe a quarter of workforce
Volvo is to cut another 4,000 jobs in Sweden and overseas in response to the rapidly deteriorating situation in the car industry.
The company announced 2,000 job cuts in June, and the latest cuts bring the total to 6,000, or about one-quarter of its global headcount before it began restructuring.
"The unstable economic environment has resulted in a very unpredictable situation, and the downturn in the global car industry is more drastic than expected," Stephen Odell, Volvo's chief executive, said in a statement.
The bulk of the blue-collar job cuts are in Sweden, where Volvo makes large vehicles - hit hardest by higher petrol prices and the credit crunch. The carmaker also builds smaller vehicles at a second plant in Belgium.
Volvo said the cuts would affect 2,000 blue-collar employees and 700 white-collar employees in Sweden. Abroad, another 600 employees would be made redundant and about 700 consultants would have their contracts terminated. Volvo did not say where the it planned to cut the jobs outside of Sweden.
Volvo said that it would negotiate the layoffs, together with those announced in the previous restructuring plan, and that its 'new organisation' would be in place by the end of the year.
Interest rate cut positive move, says RMIF
'The Bank of England's decision to cut the interest rate is positive news for the economy, and will hopefully help rebuild consumer confidence,' said Sue Robinson, Director of the Retail Motor Industry Federation (RMIF), representing the UK's retail motor sector, commenting on the announcement Wednesday 8 October 2008.
The UK interest rate has been reduced to 4.5 per cent from 5 per cent. The European Central Bank also reduced its rate, and the central banks of the USA, Canada, Sweden and Switzerland all took similar action in a co-ordinated move.
Robinson adds: 'Consumers desperately needed this long-awaited move, along with other bank support measures put in place by Government this morning. All these moves should help to instill consumer confidence and will also help businesses at this difficult time.'
Economic crisis threatens future of dealers
Britain's economic meltdown could claim dozens of dealerships in the next few months with closures imminent as businesses seek to cut the cost of vehicle marketing, according to Subaru UK managing director Lawrence Good.
He said: "A massive reduction in the size of retail networks seems to be the only way out of the terrible situation facing our industry. It's obvious the most popular marques are being the hardest hit.
"Brands suffering losses in both volume and margin will be forced to slim down. The credit crunch will change the face of car retailing and it will happen soon - I'm sure we will see a lot of closures in six months' time."
He suspects the casualties could include 'a couple' of Subaru dealerships which may be pulled down by collapsing sales of a bigger brand in the same showroom.
With the banking crisis and slump in new car sales leaving some dealers looking very vulnerable, Mr Good said: "My forecast is that in six month's time, areas now being served by five dealers will have only three and we'll see an increase in the number of authorised repair centres.
Wednesday, October 08, 2008
Economic Climate will lead to Dealer Closures
"A massive reduction in the size of retail networks seems to be the only way out of the terrible situation facing our industry" - Subaru UK managing director Lawrence Good
Britain’s economic meltdown could claim dozens of dealerships in the next few months.
Closures are imminent as businesses seek to cut the cost of vehicle marketing, believes Subaru UK managing director Lawrence Good.
“A massive reduction in the size of retail networks seems to be the only way out of the terrible situation facing our industry. It’s obvious the most popular marques are being the hardest hit.
"Brands suffering losses in both volume and margin will be forced to slim down.
“The credit crunch will change the face of car retailing and it will happen soon – I’m sure we will see a lot of closures in six months’ time,” Good told AM.
Casualties
He suspected the casualties could include “a couple” of Subaru dealerships which may be pulled down by collapsing sales of a bigger brand in the same showroom.
The banking crisis and slump in new car sales has left some dealers looking very vulnerable, said Good. “My forecast is that in six month’s time, areas now being served by five dealers will have only three and we’ll see an increase in the number of authorised repair centres.”
DATED: 08.10.08
FEED: AM
Interest Rates down by 10%
The Bank of England has slashed interest rates by half a percentage point from 5% to 4.5% to ease financial pressures on the UK’s economy.
The decision to cut rates by 10% was not expected until tomorrow.
Sue Robinson, director of the Retail Motor Industry Federation (RMIF), representing the UK’s retail motor sector, said: "The Bank of England’s decision to cut the interest rate is positive news for the economy, and will hopefully help rebuild consumer confidence.
"Consumers desperately needed this long-awaited move, along with other bank support measures put in place by Government this morning. All these moves should help to instill consumer confidence and will also help businesses at this difficult time."
The US Federal Reserve has also cut rates from 2% to 1.5%, while the European Central Bank trimmed its rate from 4.25% to 3.75%.
DATED: 08.10.08
FEED: AM
Carmakers ask for £31bn loan
The US congress last month approved $25bn of funding to help American companies develop greener technologies, prompting European manufacturers to ask for similar help. The move follows calls from Jaguar and Land Rover managing director David Smith and Ford of Britain boss Roelent de Waard for state aid for manufacturers to develop green technologies and safeguard production in the UK. Acea said the economic downturn had increased the pressure on European car production caused by the pending C02-reduction legislation and could trigger "a backlash to the transition to low-emission vehicles". Acea proposed EU policy makers should give carmakers a low interest Euro40bn (£31bn) loan to secure fuel-efficient technologies. It also called for incentives for motorists to scrap cars over eight years old and replace them with cleaner new vehicles. Christian Streiff, Acea president chief executive of PSA Peugeot Citroen, said: "Carmakers call on governments to stimulate the economy, relieve the credit crunch and restore consumer confidence. "Only then will consumers have the means to invest in new vehicles". DATED: 08.10.08 FEED: MT |
Acea, the European carmaker's association, has asked the European Union for a 40bn Euro (£31bn) loan.Car dealers steer clear of prestige cars
 Car dealers are refusing to part-exchange prestige vehicles and SUVs as forecourts begin to swell with unsold, undesirable stock, according to a survey by Auto Express.Following a record decrease in new car sales, dealers told the magazine a variety of cars were being shunned or they were only making derisory offers. Some traders openly admitted they were knocking £1,000 off the price guides of some 4x4 models in a bid to shift the metal. DATED: 08.10.08 FEED: MT |
Ford to take new Ka to US?
The company's chief executive officer Alan Mulally has told Detroit radio station WJR-AM that the company is revisiting an earlier decision not to take the Ka across the Atlantic. The Ka was first launched in 1996 and has been a bit hit across Europe. The all-new model was unveiled at the Paris Motor Show last week. It is due to go into production shortly and goes on sale towards the end of the year. Currently Ford's smallest U.S. offering is the Focus although it plans to add the new-generation Fiesta to the domestic lineup in 2010. The Ka will follow the tiny Smart ForTwo in trying to crash the US obsessions with big gas-guzzlers now that fuel is $4 (£2.30) a gallon and rising. Mulally did not say when a decision would be taken but added that one reason Ford remains uncertain about importing the Ka is that it isn't significantly more fuel-efficient than the Fiesta. The Ka is being built in Tychy, Poland, in a joint venture with Fiat that also produces the 500 city car. DATED: 08.10.08 FEED: MT |
Ford is thinking about taking its all-new Ka supermini to the USA as consumers there jump out of big SUVs and pick-ups into small, fuel-efficient cars.Tata announces new plant for Nano
Indian firm Tata Motors is to build the world's cheapest car in the western state of Gujarat.
Tata group chairman Ratan Tata said the Gujarat deal offered the best chance of making the car, the Nano, as quickly and cheaply as possible.
The move comes after Tata pulled out of its factory in West Bengal state in a row over land acquired from farmers.
The Nano is expected to cost about 100,000 rupees ($2,130) and was due to be launched this month.
A Tata Motors statement said "the mother plant for the Nano will be relocated to Sanand in Gujarat". Gujarat's government has offered about 1,100 acres for the site.
The Tata decision comes after offers of land from several Indian states.
"The company has concluded that the site at Sanand and the offer from the Gujarat government is in the best interest of the project," the statement said.
"While awaiting the Sanand plant's completion, Tata Motors will explore the possibility of manufacturing the Nano at its existing facilities at Pune and Pantnagar, and launch the car in the last quarter of this financial year."
The Sanand plant will make 250,000 Nanos a year, rising to 500,000, the company says. It is not clear when production at the plant will begin.
Ratan Tata told reporters that the fact the land was already in the possession of the Gujarat state government "will help Tata Motors establish a new dedicated mother plant with the shortest possible time lag and least possible incremental project cost".
Work at the plant in West Bengal had been suspended since August. Tata announced on Friday that it was finally pulling out.
The dispute highlights a wider problem between India's growing industry - which needs land - and its farmers who are unwilling to give it up.
A number of other car firms also plan vehicles to compete with the Nano but have not yet begun production.
The Tatas will be the second automobile company to set up their plant in Gujarat. Gujarat along with Maharashtra tops Indian states as a major investment destination
Fiat declares best month's results for four years
Fiat is celebrating its best monthly result in the UK for four years - since September 2004 - after posting 9818 sales to give the Fiat brand a 3.0 per cent UK market share.
The news comes as UK sales fell for the fifth month in a row. Society of Motor Manufacturers and Traders (SMMT) data shows that the September market closed 21.2 per cent down on last year, while Fiat's monthly retail sales figure (56.5 per cent up on the same period last year) boosted its market share by 15.4 per cent to 3.0 per cent.
Much of the success is attributed to the continuing appeal of the new Fiat 500, which was launched in the UK earlier this year. A total of 3624 examples of the award-winning supermini were sold in September alone.
"The Fiat brand is on the move," says Andrew Humberstone, managing director, Fiat Group Automobiles UK. "This fantastic result is testament not only to our eco-friendly cars and the overall desirability of the Fiat range, but to the number of key dealer partners who exceeded their sales targets by more than 150 per cent.
"We expect the fourth quarter to be challenging but, that said, we believe we are positioned to face these challenges. There has been a shift in consumer buying behaviour, and people are choosing to downsize into the small car sector - an area which is clearly one of our primary strengths."
UK Mini sales fall by one fifth
UK sales of the Oxfordshire-built Mini have fallen by almost one fifth on the same time last year.
In September, 7,116 of the Cowley-built cars were sold compared with 8,764 in the same month in 2007, which represents a fall of 18.8%.
It comes after the Society of Motor Manufacturers and Traders (SMMT) announced that new UK car registrations fell 21% in September.
But Mini, which is owned by BMW, said it had seen an increase in US sales.
September was the fifth consecutive month that the SMMT reported falls in new car sales.
Market situation
September is usually second only to March - the other month in which car registration letters change - as the most popular month for buying a new car.
So far this year, 34,816 Minis have been sold compared with 36,969 in the first nine months of 2007.
BMW spokeswoman Angela Stangroom, said the company was keeping a close eye on the market situation.
"We expect to build the same amount of cars this year at Cowley as last year, 237,000," she said.
"We have not cut any shifts."
Earlier this year, hundreds of staff at the Mini factory were laid off over a weekend due to Spanish fuel protests
Ford names new marketing and customer service directors
Ford of Britain has announced two new directors for its leadership team in the UK, which is Ford's second largest global market after the US.
Marketing move
Mark Simpson becomes marketing director this month, succeeding Mark Ovenden who moves to Russia as marketing, sales and service director in Europe's fastest growing market.
Mark Simpson had been marketing communications director, Ford of Europe, where he was responsible for developing the advertising and marketing campaigns for Europe's 51 markets. He previously held senior management positions in the US for six years, most recently as New York's Lincoln Mercury regional manager. From 1996 he was managing director of Ford Hungary.
Married with two children, Mark joined Ford in 1985 at the company's Daventry parts distribution centre. He lives in Essex and enjoys music and cooking.
Ford Customer Service Division (FCSD)
Effective this month, Ford customer service is directed by Andy Barratt, former district sales manager, taking over from John Cooper, who becomes FCSD's European operations director.
Prior to leading sales teams for five years in the eastern district most recently and Scotland, Northern Ireland and the North, Andy was Ford Focus brand manager - helping to establish the car as the UK's best seller.
Andy began his Ford career in 1980 as a Dagenham business technician. Living in Essex with his wife and two children, Andy enjoys anything on four wheels and spending time with his family.
Welcoming his colleagues to their new roles, Roelant de Waard, Ford of Britain chairman and managing director, said: "Mark and Andy bring a wealth of experience both internationally and from other functions within the company. Combined with our strongest-ever product line-up, we will continue to perform well in today's market."
Axe hangs over Citroën UK sales and marketing teams
Citroën is looking at axing its UK sales and marketing teams, with its £20m advertising account to be run from Paris, as part of major cost-cutting measures being considered by owner PSA Group.
At this stage, it is not known if the mooted plans will also affect its sister car marque Peugeot. Euro RSCG handles the advertising account for both marques, while OMD handles media planning and buying.
The move is part of global proposals being tabled as part of PSA Group's restructuring programme, CAP 2010, which was launched last year and is aimed at reducing costs within the company and boosting sales.
Senior sources at Citroën claim that following the consolidation, Citroën UK's marketing director Ian Hughes is likely to be moved to company headquarters in France and join a much smaller Europe Middle-East and Africa team.
A PSA Group spokesman confirmed that marketing activities would be considered as part of the CAP 2010 plan, but added any changes still needed to be finalised.
"PSA Peugeot Citroën has marketing operations in 150 countries. As part of our CAP 2010 plan, our marketing approach will give Peugeot and Citroën a real boost and we will look at our current marketing approaches," the spokesman says.
"We anticipate reducing marketing operations, though discussions on this are ongoing and no conclusions have been reached."
The CAP 2010 plans also includes the target of reaching a 30% reduction in overheads by 2010, supported by around 7,000 job cuts across the group.
Central banks cut interest rates
The UK rate move - which had not been expected until Thursday - puts interest rates at 4.5% from 5%.
The US Federal Reserve has cut rates from 2% to 1.5% and the European Central Bank trimmed its rate from 4.25% to 3.75%.
The central banks of Canada, China, Sweden and Switzerland all took similar action in the co-ordinated move.
The unprecedented step is aimed at steadying a faltering global economy and slumping stock markets.
The Fed said that it had acted "in light of evidence pointing to a weakening of economic activity and a reduction in inflationary pressures".
DATED: 08.10.08
FEED: BoE
£50 Bn Rescue Plan announced
DATED: 08.10.08
FEED: IUK
Tuesday, October 07, 2008
Carmakers call for sales help from Government
DATED: 07.10.08
FEED: AW
Porsche plans new entry model with VW
DATED: 07.10.08
FEED: AW
Tata moves Nano production to 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
Ford gives parents Speed Control
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
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
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
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
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
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
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
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
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
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
DATED: 07.10.08
FEED: AW
New car registrations plummet 21%
DATED: 07.10.08
FEED: AW
