Friday, November 07, 2008
Management Reshuffle at Isuzu / Subaru uk
Sam Burton, ex-managing director of Subaru and Isuzu UK, has been enticed back to the business as sales director following a management reshuffle.
Burton was Subaru’s sales director in 1995, and became managing director of both brands in 2000, before leaving in 2004 to join Mondial Assistance.
Reporting to managing director Lawrence Good, Burton will work closely with the Subaru dealer network to try to forge a stronger relationship and develop the “right sales approach to take the company forward”.
Subaru revealed that it had approached Burton to get him to come back to the business.
Suggestions that he might be groomed to take Good’s job at the top were rejected as “completely unfounded” by Subaru UK.
Kenyon Neads, previously brand director for Isuzu UK, has been appointed as marketing director across the Subaru and Isuzu brands. He will focus on national marketing campaigns and events to promote the two brands.
John Fossey, previously head of marketing for Subaru UK, now becomes brand director across Subaru and Isuzu.
His focus will be on product development, national sponsorship and brand awareness.
Mark Cousen has been appointed national franchise manager and will be responsible for recruiting a new generation of dealers.
All of the new appointments will report to Good.
Suggestions that Andrew Edmiston, managing director of parent business IM Group, was to be moving to a more hands-on operational role with Subaru specifically have been ruled out.
A spokeswoman for Subaru and Isuzu said: “Andrew Edmiston’s position will not change as a result of the reshuffle. There are also no changes planned at Daihatsu.
“We want to wait until we’ve fully explained to dealers the reasons behind the reshuffle before releasing any more information.”
DATED: 07.11.08
FEED: AM
IMI Finance Director to leave
Allan Tyrer, company secretary and finance director of the Institute of the Motor Industry (IMI) has left the organisation.
Sarah Sillars, IMI chief executive officer, said: “Following a period of reflection, Allan has decided to leave the business to take up a new direction in his career.”
Sillars said that while Tyrer was instrumental in helping the IMI grow, ‘he now wishes to focus on his future work helping smaller businesses prosper and thrive’.
The IMI hasn’t yet confirmed who will be replacing him as financial director.
DATED: 07.11.08
FEED: AM
New Car benefit rules
"Cars made available to employees in the motor sector are chargeable to tax and national insurance in the same way as cars made available to workers in other forms of employment. "
HM Revenue and Customs is to revise the way in which company car benefit for employees in the motor industry is calculated by rolling out a national agreement to replace local rules.
Although the changes have been announced after consultation with the industry’s main trade bodies – Retail Motor Industry Federation, Scottish Motor Traders Association, Society of Motor Manufacturers and Traders, British Vehicle Rental and Leasing Association and the Association of Car Fleet Operators – Sue Robinson, director of the RMIF’s National Franchised Dealers Association, does not agree with the action.
“It was imposed on us,” she said. “The meetings we had with HMRC were for discussions but it was already decided. We’re not sure this is the correct way forward.”
Cars made available to employees in the motor sector are chargeable to tax and national insurance in the same way as cars made available to workers in other forms of employment.
However, HMRC has had ‘car averaging’ agreements to ease the administrative burden for employers in the motor industry in connection with employees that have no specific car allocated to them.
Averaging overcomes the issue of multiple forms P11D and P46 (Car).
It says the process needs to be simplified. The current rules require individual agreements between each dealer and its local tax office, which has led to a lack of consistency and perception of unfairness.
HMRC has now developed a new national agreement to apply to all motor industry employees that are not allocated a specific car. It should mean less paperwork for dealers and a levelling off of the rules for different sizes of dealer.
However, some staff will have to pay more tax, depending on the car they drive, while others will pay less tax.
“There will be winners and losers, but we think there will be more losers,” said Robinson.
She added: “HMRC wants to stop the unfairness of the current rules, but that unfairness was caused by them failing to monitor and control the situation properly, not by dealers taking advantage.”
These new arrangements do not change current legislation. Instead, they seek to expand on existing best practice implementing car averaging across the motor trade, according to HMRC. Employees who are not in a car-averaging agreement will be unaffected.
Further details about the national agreement, which comes into force from April 6, 2009, can be viewed on the HMRC website –www.hmrc.gov.uk/cars/averaging.htm
It replaces all locally agreed arrangements and will be reviewed with trade bodies in autumn 2009 to resolve any anomalies.
DATED: 07.11.08
FEED: AM
Lada could make a UK comeback
Lada cars could make a return to the UK on the back of a new range of modern cars still under development, so it will not be any time soon.
The Russian cars have not been in the UK since 1996 when the Riva saloon, Samara hatchback and Niva 4x4 were phased out.
The Riva, based on an ancient Fiat, dates back to the factory's beginning in 1966 and, amazingly, is still being made and is now called the Lada Classic.
The Samara is also still being turned out at the Lada parent company AvtoVAZ plant in Togliatti, 1,000kms south east of Moscow.
The Niva is now made under a joint venture with General Motors in Togliatti and wears a Chevrolet badge. There are also a couple of other more modern cars, the Kalina and the Priora which are made in hatch, saloon and estate form.
Earlier this year, however, Renault, with an eye on the fast-growing Russian market, took a 25% stake in AvtoVAZ and is helping the Russians develop new cars.
One, the Lada 2116, looks ready for production, but the reality is still a long way off, waiting for the construction of a new line at the factory to build Renault 1.4- and 1.6-litre engines under licence.
This platform, developed by AvtoVAZ, will also carry a 4x4 crossover vehicle which is under development.
When will the 2116 go into production?
"Not soon enough," says chief operating officer Yann Vincent, a former Renault purchasing chief shipped in to head up the factory business. First up, however, will be an all-new MPV developed off the platform of the Dacia Logan, another affiliate of the French company.
AvtoVAZ also has a licence to use this platform and according to the company's new head of design, Brit Anthony Grade, an all new body look has already been signed off. Again, production details await the arrival of the new engines.
The AvtoVAZ business is also being overhauled.
Company president Boris Aleshin says some non-core business will be sold off and the vast 105,000 workforce trimmed by up to 25,000, many of whom will work for newly formed independent businesses.
The company's business portfolio includes vehicle components, plastics moulding and even hotels, construction and recreational facilities.
Aleshin said: "Our focus will be on design, development, assembly, sales, service and financial services.
"We will look to divest some of the other business areas and they will have to seek their own investors or mergers."
DATED: 07.11.08
FEED: AM
Thursday, November 06, 2008
Mazda appoint Santander as Finance Provider
Mazda Motors UK has appointed Santander Consumer as its new finance provider, replacing Ford Motor Credit Company which held its credit arm previously.
Mazda Financial Services, as a trading name of Santander Consumer Finance, will be available both to Mazda dealers and customers.
Jeremy Thomson, Mazda Motors UK managing director said: "The benefit of this relationship is that we will gain access to the comprehensive services of Santander Consumer, including wholesale finance for our dealers.
“With Santander as our new finance partner, our dealers and Mazda in the UK will be able to even better accommodate the demand for customer orientated financial services."
DATED: 06.11.08
FEED: AM
Ford appoints UK Directors
Ford of Britain has appointed Mark Simpson as marketing director and Andy Barratt as customer service director.
Simpson succeeds Mark Ovenden who moves to Russia as marketing, sales and service director while Barratt’s predecessor John Cooper becomes Ford customer services division European operations director.
Previously marketing communications director, Ford of Europe, Simpson was responsible for developing advertising and marketing campaigns for Europe’s 51 markets.
Barratt was formerly district sales manager leading sales teams for five years in the eastern district as well as Scotland, Northern Ireland and the north.
DATED: 06.11.08
FEED: AM
Renault site shuts down
A Renault spokesman confirmed the closure, saying he believed the one-site business had gone into administration but it was too soon to know who the appointed administrators were. He pointed out that the servicing part of the company has remained trading. Walker Renault sold new and used Renault cars and vans and appears to be the latest casualty of the economic downturn that has hit the car industry. Renault's own retailing arm, the Renault Retail group, recently announced it was conducting a ‘strategic review' of its business and planned on closing several dealerships. In the past week both the Amethyst Motor Company and the Sidlow Grouphave gone into administration. DATED: 06.11.08 FEED: MT |
The Walker Renault dealership in Stourbridge has ceased trading and 36 employees are believed to have been made redundant.Bank of England Reduces Rate by 1.5 % to 3%
The Bank of England’s Monetary Policy Committee today voted to reduce the official Bank Rate paid on commercial bank reserves by 1.5 percentage points to 3%.
The past two months have seen a substantial downward shift in the prospects for inflation in the United Kingdom. There has been a very marked deterioration in the outlook for economic activity at home and abroad. Moreover, commodity prices have fallen sharply.
Since mid-September, the global banking system has experienced its most serious disruption for almost a century. While the measures taken on bank capital, funding and liquidity in several countries, including our own, have begun to ease the situation, the availability of credit to households and businesses is likely to remain restricted for some time. As a consequence, money and credit conditions have tightened sharply. Equity prices have fallen substantially in many countries.
In the United Kingdom, output fell sharply in the third quarter. Business surveys and reports by the Bank’s regional Agents point to continued severe contraction in the near term. Consumer spending has faltered in the face of a squeeze on household budgets and tighter credit. Residential investment has fallen sharply and the prospects for business investment have weakened. Economic conditions have also deteriorated in the UK’s main export markets.
CPI inflation rose to 5.2% in September. The substantial rise since the beginning of the year largely reflects the impact of higher energy and food prices. But commodity prices have fallen sharply since mid-summer, with oil prices down by more than a half. Inflation should consequently soon drop back sharply, as the contribution from retail energy and food prices declines, notwithstanding the fall in sterling. Pay growth has remained subdued. And measures of inflation expectations have fallen back.
Since the beginning of the year, the Committee has set Bank Rate to balance two risks to the inflation outlook. The downside risk was that a sharp slowdown in the economy, associated with weak real income growth and the tightening in the supply of credit, pulled inflation materially below the target. The upside risk was that above-target inflation persisted for a sustained period because of elevated inflation expectations. In recent weeks, the risks to inflation have shifted decisively to the downside. As a consequence, the Committee has revised down its projected outlook for inflation which, at prevailing market interest rates, contains a substantial risk of undershooting the inflation target. At its November meeting, the Committee therefore judged that a significant reduction in Bank Rate was necessary now in order to meet the 2% target for CPI inflation in the medium term, and accordingly lowered Bank Rate by 1.5 percentage points to 3.0%.
The Committee’s latest inflation and output projections will appear in the Inflation Report to be published on Wednesday 12 November.
The minutes of the meeting will be published at 9.30am on Wednesday 19 November.
The previous change in Bank Rate was a reduction of 0.5 percentage points to 4.5% on 8 October 2008.
DATED: 06.11.08
FEED: BoE
Why Training can save you Money
Nearly half of the companies who invest in staff training end up saving money, according to a new report by Cranfield School of Management, on behalf of government body learndirect. On the flip-side, the Sector Skills Development Agency says companies that don’t bother with training at all are 2.5 times more likely to fail. So although it might be tempting to slash that training budget as the downturn starts to bite, it could turn out to be a big mistake.
In ‘Nurturing Talent’, which it describes as 'the first academic report to examine the impact of external recruitment versus developing internal talent’, Cranfield found that 44% of companies who invested in training saved money in the long run (through extra productivity or lower recruitment costs), 33% saw an improvement in staff motivation, and 52% enjoyed better retention. Indeed, 78% of employers felt skills development was more important to their company than recruitment. ‘Effective training can reduce staff turnover and absenteeism, improve motivation, increase productivity, help boost and improve customer satisfaction,’ says Sarah Jones, the boss of learndirect’s parent Ufi.
One happy customer is Mansfield-based Mines Rescue. You can probably guess what it used to do, but as the UK coal mining industry has gone into decline, it has re-invented itself as a health and safety training provider and consultancy. Through the Learning to Work scheme, staff have used their on-the-job experience to work towards broader qualifications. ‘Because Mines Rescue is a constantly changing, non-traditional business, tailor-made training that meets the needs of our business is a viable and extremely worthwhile investment,’ says manager Andrew Watson.
If you can offer staff training without it affecting your day-to-day business, that has to make it a more compelling proposition – and if you can improve motivation and retention in the process, the business case gets even stronger...
DATED: 06.11.08
FEED: MGT
RMIF warns dealers on new company car tax rules
Car dealer staff who have access to a company car but are not allocated a specific vehicle are likely to see their related tax bill rise following the introduction of new car tax averaging arrangement, warns the Retail Motor Industry Federation (RMIF).
HM Revenue and Customs (HMRC) are revising the way that tax due on company car use for motor trade staff is collected. The current situation, where dealers make individual agreements with their local tax office, is perceived to be inconsistent. A new national arrangement will come into force on 6 April 2009, and will replace all local agreements.
RMIF Director Sue Robinson commented: 'The new arrangements are not the result of legislative change, but of HMRC attempting to enforce the existing law more rigidly to ensure best practice. Although HMRC consulted trade bodies on the changes, it was obvious they had already decided the main outline of the scheme prior to discussion. The NFDA have concerns about the arrangements, and have strongly lobbied for changes with HMRC only agreeing to minor amendments.'
Robinson continues: 'We are not sure that this is the correct way forward. There will be winners and losers, but we think there will be more losers. Although we believe in the long run the new system should mean less paperwork for dealers, we are concerned that the impact of the changes will mean more dealer staff will be paying more tax. HMRC wants to stop the unfairness of the current rules, but that unfairness was caused by them failing to monitor the situation properly.'
A review of the new system is expected in Autumn 2009.
Robinson adds: 'The RMIF will continue to monitor the situation, and lobby HMRC, who have committed to undertaking a review within 12 months.'
Automotive insolvencies accelerate
Motor trade insolvencies rose by 18% year-on-year during the third quarter of the year. Latest figures from Experian show that 67 businesses failed during the period, although this was better than other sectors in the UK.
The automotive industry recorded the 17th highest number of insolvencies out of the 36 industries surveyed and the 18% increase was much better than the 28.2% average increase across all sectors by some margin.
The latest increase follows a seven-year high recorded in the second quarter of the year when business failures soared by 30.9%.
Kirk Fletcher, managing director of Experian's automotive division, said: "Our analysis highlights why it is important for automotive businesses to know that their customers and suppliers have the means to pay their bills.
"The best way for automotive businesses to protect themselves is by continually monitoring customers' and suppliers' commercial integrity. Access to this level of detailed insight will provide them with the intelligence to help them manage their exposure to risk."
US car sales worst in 30 years
The UK motor industry is bracing itself for more poor new car sales figures on Thursday (November 6) following September's year-on-year slump of more than 20%. However, the industry will be hoping that the data is not as bad as in the United States where sales last month dropped to their lowest October level for 30 years.
Despite motor manufacturers offering significant discounts, the US reduction was blamed on evaporating consumer confidence and scarce credit facilities.
New car sales in the US in September totalled 12.5 million units, but October's sales fell to 10.7m - down from 16.1m 12 months ago and the lowest level since the mid-1970s.
Mark LaNeve, General Motors' North American marketing chief, described October as 'probably the worst industry sales month in the post-world war two era'.
RMIF warns on new Company Car Tax Rules
RMIF Director Sue Robinson commented: ‘The new arrangements are not the result of legislative change, but of HMRC attempting to enforce the existing law more rigidly to ensure best practice. Although HMRC consulted trade bodies on the changes, it was obvious they had already decided the main outline of the scheme prior to discussion. The NFDA have concerns about the arrangements, and have strongly lobbied for changes with HMRC only agreeing to minor amendments.’
Robinson continued: ‘We are not sure that this is the correct way forward. There will be winners and losers, but we think there will be more losers. Although we believe in the long-run the new system should mean less paperwork for dealers, we are concerned that the impact of the changes will mean more dealer staff will be paying more tax. HMRC wants to stop the unfairness of the current rules, but that unfairness was caused by them failing to monitor the situation properly.’
A review of the new system is expected in Autumn 2009.
Robinson added: ‘The RMIF will continue to monitor the situation, and lobby HMRC, who have committed to undertaking a review within 12 months.’
£27m skills training pot available
The government is to channel £27m of EU cash to help people improve their skills and stay in work or find a new job.
Organisations are being urged to submit plans for regional projects to develop ways of boosting people's employment opportunities.
The money will come from the European Social Fundand all projects will run in conjunction with at least one partner from another EU member state.
Tony McNulty, UK minister for employment and welfare reform, said: "At a time when we are facing global economic challenges, it is essential that we make sure everyone has the right skills for the vacancies that employers want to fill.
"This initiative will help to break down barriers that prevent people achieving their potential, and tackle some of the biggest challenges facing our society. It will boost the support we offer to unemployed and disadvantaged people to improve their skills and return to work."
The money will be targeted at projects helping people find jobs, using a range of measures including working with employers, the government said.
The deadline for applications is Wednesday 17 December, with projects expected to start in spring 2009 and run for up to three years.
DATED: 06.11.08
FEED: RMIF
Barack Obama gets US auto industry backing
Obama has promised to help the Detroit "big three", Ford, General Motors and Chrysler, by doubling a recently approved loan programme that will devote $50bn (£31.6bn) to helping the industry develop more fuel-efficient cars. The American United Auto Workers union, which has backed Obama throughout his campaign, said it welcomed Obama's presidential victory. "As our retirement savings plummet and we struggle to pay our bills, UAW members and our families are deeply concerned about where our country is headed," said UAW president Ron Gettelfinger. "Barack Obama understands the squeeze on the middle class; he has proposed a tax cut for 95 percent of working families. "Obama's economic plan will turn around the wrong-headed policies that have pushed our country to the brink of disaster." DATED: 06.11.08 FEED: MT |
Barack Obama's victory in the American presidential election has been strongly endorsed by the struggling US auto industry.Credit crunch hits new car purchases
Drivers told uSwitch.com, which conducted the survey, that the current financial climate would impact the purchase of their next vehicle, while over a quarter said they wouldn't be able to afford a new vehicle at all. Only 18 per cent said they were confident they would not have to change their future car buying plans. Of those planning to buy a car, 15 per cent are set to spend around £3,000 less and 4 per cent who would typically buy a brand new car said they would be shopping second-hand instead. Nearly half of the drivers surveyed said they were planning to hold onto their current car for longer than planned. Ashton Berkhauer, insurance expert at uSwitch.com, said: "Our research shows the potential size and scale of the slowdown in car sales as Britain's motorists react to a looming recession. "Some consumers are writing themselves out of the car buying market entirely, some are reducing their planned spend, while others are aiming to ride out the storm by holding onto their existing model for as long as possible. "These are all strategies that will help consumers cope, but the impact they could have on both car sales and manufacturing could be huge." DATED: 06.11.08 FEED: MT |
The credit crunch is forcing over three quarters of motorists to put off their next car purchase.Tuesday, November 04, 2008
Amethyst Motor Company closes down
The dealer group, which operated three Honda and Seat dealerships in Cheltenham, Gloucester and Chippenham, ceased trading last week. Deloitte has been appointed as administrators of the business and is looking to find an interested party to acquire the leasehold properties All employees at the group, which had a turnover of £32m last year, have been made redundant. Robin Allen, joint administrator, said: "Amethyst Motor Company Limited has suffered severe financial difficulties as a result of the decline in the motor sales industry in the UK in recent months and the tightening of credit. "We are seeking interested parties to acquire the properties and are working closely with Honda who is in discussion with other franchisees with a view to taking over the operation." DATED: 04.11.08 FEED: MT |
Amethyst Motor Company has closed with the loss of 85 jobs.BMW scraps profits forecast
Third quarter net profit plummeted by 63 per cent to €298m (£240m) as sales fell 8.6 per cent to €12.6bn. The luxury carmaker said it would have to take additional charges of €1.3bn during the quarter and that it would cut production by an additional 40,000 units this year on top of the 25,000 unit reduction already announced. BMW blamed a number of factors for the downturn in its business including "general reticence" to spend by consumers, ongoing difficulties in the pre-owned car markets and increased bad debt risks. It said it had previously forecast a return on sales of at least 4 per cent for the year but this was no longer feasible given the sharp deterioration in market conditions. The carmaker added that its worldwide sales forecast would also have to be amended and would not beat last year's record levels. DATED: 04.11.08 FEED: MT |
BMW has reported a significant slump in profits and can no longer give a forecast for 2008 after being hit by the economic downturn.Automotive insolvencies rise
Latest figures from Experian show that 67 businesses failed during the period, although this was better than other sectors in the UK. The automotive industry recorded the 17th highest number of insolvencies out of the 36 industries surveyed and the 18 per cent increase was much better than the 28.2 per cent average increase across all sectors by some margin. The latest increase follows a seven-year high recorded in the second quarter of the year when business failures soared by 30.9 per cent. Kirk Fletcher, managing director of Experian's automotive division, said: "Our analysis highlights why it is important for automotive businesses to know that their customers and suppliers have the means to pay their bills. "The best way for automotive businesses to protect themselves is by continually monitoring customers' and suppliers' commercial integrity. "Access to this level of detailed insight will provide them with the intelligence to help them manage their exposure to risk." DATED: 04.11.08 FEED: MT
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Motor trade insolvencies rose by 18 per cent year-on-year during the third quarter of the year.Sidlow Group closes
The Surrey-based dealer, which holds the VW, Seat, Audi, Citroen, Peugeot and Alfa Romeo franchises, announced it would stop trading late last week. Administrators Grant Thornton failed to find a buyer for the business and stock is already being removed from its five dealerships in Surrey and Sussex. In a statement the administrators said Sidlow had "suffered substantial losses over an extended period, exacerbated by the current economic climate and the decline in the new and used vehicle market in recent months". It added: "Attempts to achieve a quick sale of the business were unsuccessful, and due to the uncertain trading environment, the administrators were unable to secure support for a period of trading whilst other sale options were sought." "Unfortunately this has meant that the majority of employees have been made redundant with immediate effect, with a small number of people retained for a short period to achieve an orderly wind down of operations." The dealer group had been trading for the past 60 years after starting out as a petrol station in Reigate, Surrey. DATED: 04.11.08 FEED: MT |
The Sidlow Group has been forced into administration and up to 250 jobs have been lost.Sidlow Group Collapses
Administrators have gone into the Sidlow Group, which has dealerships for Audi, Volkwagen, Seat, Peugeot, Citroen and Alfa Romeo.
Up to 250 employees are believed to have been made redundant at the south of England dealer group, which has ceased trading.
Grant Thornton has been appointed administrator.
Its dealerships included VW Horsham, Seat Gatwick, Audi Gatwick, Citroen East Grinstead, Alfa Romeo Gatwick and Peugeot Gatwick.
It also had a bodyshop at Lingfield.
DATED: 04.11.08
FEED: AM
Stolen Cars lead to jail for Dealer
A dealer has been jailed for a year for stocking stolen cars.
Maxwell Alvey was found with five cars, worth around £40,000 in total, which had been stolen and had their registration plates changed, Derby Crown Court was told.
The Derby dealer admitted four charges of possessing criminal property but claimed he had bought the cars in good faith from a Birmingham man called Brian Allen, only to later suspect they had been stolen when no paperwork arrived.
DATED: 04.11.08
FEED: AM
Structural Review at Renault Retail Group
Renault Retail Group is reviewing the future of its dealerships in Dartford and London City as part of wider measures to ride out the recession.
Its Beddington Farm bodyshop and service centre in Croydon is also facing closure, and other sites may be restructured.
Managing director Ian Plummer said the group has to streamline its operations "wherever possible", in line with most other businesses in motor retail.
One in four Renault sales
“While everyone is trading under difficult circumstances at the moment, we also have an eye on the long-term and have reluctantly put forward these proposals to safeguard the future of staff at other sites within the group," he added.
Following the closures, Central London will be covered by its dealerships at Acton and Ilford.
Renault Retail Group accounts for approximately one in four Renault vehicles sold in the UK.
DATED: 04.11.08
FEED: AM
Pendragon shuts down another Volvo site
The London Road site closed its doors on Friday after nearly 28 years of trading, according to the Reading Evening Post newspaper. A Pendragon spokesman told the newspaper that deteriorating economic conditions were to blame for the closure. "We have sustained continued losses at this business for some time and the current economic climate does not make it viable to continue in business," he said. The Reading dealership is the ninth Stratstone Volvo business to be closed by Pendragon in just over a year. In March the giant dealer group shut down its Volvo site in Plymouth with the loss of 22 jobs. That followed the announcement last October that Pendragon was restructuring and closing seven Volvo businesses. The closures affected businesses in Businesses in Mansfield, Newport, West Bridgford, Welwyn and Accrington. Sites in Crewe, Oldham and Ilford also closed their sales operations but remained open as authorised repairers. DATED: 04.11.08 FEED: MT |
Pendragon has closed its Stratstone Volvo dealership in Reading with the loss of 30 jobs.Renault unveils plans to shut dealerships
The Renault Retail Group said it is ‘restructuring sites' to ensure that it is in a ‘strong position' to face the economic downturn. The group is considering the future of its Dartford and London City dealerships as well as its Beddington Farm bodyshop and Croydon service centre. It currently operates a 25-strong dealer network. "As is the case with most dealer groups, we've had to take a very close look at each site within our portfolio to ensure that each is able to make a contribution the group and have reluctantly put forward these proposals to safeguard the future of staff at other sites within the group," said RRG managing director Ian Plummer. "The current market conditions are the most challenging the motor industry has faced in years. "This has meant that we are striving to be more efficient by streamlining our operations wherever possible. In that respect, we're clearly no different to the rest of the motor retail industry." Despite the announcement, the Renault Retail Group was thought to be in good shape - it said it had beaten its 2007 targets at the start of the year after recording a 0.7 per cent increase in market share year-on-year. It accounts for aprroximately a quarter of the French brand's UK sales. DATED: 04.11.08 FEED: MT |
Renault is poised to close several dealerships in its retail division following a review of the business.
