Friday, December 05, 2008
Ford values Volvo at $6bn
Ford Motor Company is seeking to sell Volvo for as much as $6 billion, and is using JP Morgan Chase & Co as an adviser, according to reports in the United States.
It is believed that Ford is counting on the strength of the brand to draw bidders. A spokesman for Ford could not be reached for an immediate comment.
On Monday (December 1), Ford said it was reviewing options for Volvo and could sell the luxury Swedish car brand as it looked to shore up cash amid a deep industry downturn. Ford said the review of Volvo was part of its efforts to 'strengthen its balance sheet' at a time when auto sales are plunging worldwide.
Volvo is the last remaining brand from Ford's former premium auto group that had included the now-divested Aston Martin, Jaguar and Land Rover brands.
Nissan family-run dealership closes
The recession has claimed Oates Garages in County Durham.
The family-run dealership, which represented Nissan for 28 years, was founded in 1939 by Syd Oates, grandfather of current managing director Michael Oates.
A statement on its website said: "It is with regret that due to the fact trade has been reducing over the last 12 months but has seriously deteriorated since May, the directors have had no alternative but to cease trading immediately and take steps for the voluntary liquidation of the company."
Ferguson & Co of Stockton On Tees will be appointed liquidators.
The business earlier this year cancelled a planned move to a new site, choosing instead to expand the parking and workshop of its existing premises.
DATED: 05.12.08
FEED: AM
Waters Group Restructures
Restructuring at Waters Group in Hertfordshire has seen it close its Peugeot dealership at Hertford.
The business, which has been in the town for 50 years, closes on December 7.
It's not yet known whether other dealership closures are planned.
Waters also represents Peugeot at Hatfield and Lea Valley, Renault at Hatfield and Letchworth and Mazda at Lea Valley.
Waters is part of MCL Group, the former Mazda and Kia distributor which is part of the Japanese Itochu Corporation which also owns Stapletons Tyre Services (STS).
MCL Group also has three car supermarket sites, branded Autoplanet, in London, Southampton and Maidstone.
DATED: 05.12.08
FEED: AM
Interest rate cut must be passed on, says RMIF
'The Bank of England's decision to further reduce the interest rate is positive news for consumers and business, but it is vital that the saving is passed on to restore confidence in the marketplace,' said Sue Robinson, Director of the Retail Motor Industry Federation (RMIF), representing the UK's retail motor sector, commenting on the announcement today (Thursday 4 December 2008).
The UK interest rate has been reduced to 2 per cent from 3 per cent.
Robinson adds: 'Consumers and business will feel more confident in the economy once they feel the effect of a lower cost of borrowing.'
Staff at Wessex Garages on notice of redundancy
Employees at the Hereford Citroen and Nissan dealership operated by Wessex Garages face a bleak Christmas.
The dealership faces closure this month due to the group's failure to renegotiate the lease on its showroom, which expires on Christmas Eve.
Keith Brock, managing director, said 22 staff have been given a 30-day statutory notice of consultation, and the closure of the outlet is "a real possibility".
Brock said none of Wessex Garages' other dealerships were affected. It has sites in Bristol, Cardiff, Newport and Gloucester and franchises for Kia, Fiat and Abarth.
DATED: 05.12.08
FEED: AM
GM could sell stake in Saab
Jan-Ake Jonsson, managing director of the Swedish brand, said GM and Saab are talking to several investors about putting money into the Swedish company. He did not say who Saab is talking to, but sources at Saab owner GM say other automakers and large engineering houses are among the interested parties.
We are looking for investors to get some external funding into some activities, such as accelerating product development, Jonsson told Automotive News Europe Wednesday.
GM announced a strategic review of Saab on December 2. GM's chief operating officer, Fritz Henderson, said the review includes a possible sale of the loss-making brand.
Car ads policy puts Peter Vardy ahead
Peter Vardy Ltd has overhauled its used car strategy to ensure the business continues to perform in the difficult trading conditions.
The group, which has opened a new £5 million Vauxhall/Chevrolet showroom in Motherwell and launched a new website, is offering less product but being more focused in its advertisement campaigns.
It has dropped used car listings-style adverts in local papers and, instead, is placing adverts in the Scottish nationals that emphasise specific cash incentives and finance deals.
Used car stock has been cut from 110 cars to 55 across its three Vauxhall sites with the focus on Vectra, Corsa and Astra. They now account for 70-80% of used sales, with stock turn of twice a month.
“You have to manage your stock properly or get out of business,” said group chief executive Peter Vardy.
His new car marketing policy mirrors his used car stance – focused ads that are constantly repeated.
“For new you have to sit down with the manufacturer and see what their problem stock is – then you work out the finance deals, get the supply and promote it,” he said.
“We’ve done the same Corsa diesel ad since August and 70% of the cars we’ve sold are that car.”
Peter Vardy Ltd is still hitting 140% of Vauxhall’s target every month, achieving full bonus on new cars.
Its new Motherwell dealership will provide another fillip, and adds the Chevrolet franchise for the first time.
Chevrolet is an unknown, although Vardy said: “I met the MD (Rory Harvey) and was blown away by the new products that are coming in 2010. It’s a cheaper brand than Vauxhall and that is good for Motherwell.”
He is excited about the new website which has more content than the old site and is updated daily. The focus is on new cars.
Despite recently making 10 people redundant after restructuring of its BMW dealership in Fife, Vardy is still keen to grow next year.
“We’re no different to anyone else – you have got to get the cost base right,” he said.
“We still want to grow but at a pace that allows the culture to grow with us.”
Big Three chiefs take pay cut for €31bn loan
The chiefs of Ford, Chrysler and General Motors have agreed to be paid $1 a year in return for a $31 billion (£21bn) loan from the US government.
Alan Mulally, the chief executive of Ford, Rick Wagoner, his counterpart at General Motors, and Robert Nardelli, the head of Chrysler, will all take a 67p annual salary and have agreed to sell their company jets.
Mulally earned $21 million last year and Wagoner earned $14.4m. As Chrysler is a privately owned company it does not disclose pay figures.
The US manufacturers presented their plans to the US government on how they would pay back the state aid yesterday and will each be questioned by congress today and tomorrow.
Ford has already revealed that it is considering a sale of its Swedish brand Volvo and will be heavily investing in fuel-efficient cars. All bonuses for Ford management across the globe will also be cancelled next year.
General Motors says it needs $4 billion in Government loans this month and a total of $12 billion by late March to continue operating.
Mulally said Ford requires a $9 billion 10 year federal loan to act as a cushion if conditions deteriorate.
Chrysler has asked the US Government for a $7 billion bridging loan by December 31 to ensure liquidity.
Meanwhile, year-end bonuses for thousands of managers at Toyota Motor will be reduced as part of a cost-cutting drive due to falling sales.
The decision affects about 8,700 middle and senior managers, reports the Financial Times.
DATED: 05.12.08
FEED: AM
Sytner takes over Richard Alexander Group
Staff at the Volkswagen, Audi and Seat dealerships of Richard Alexander Group are meeting their new owners, Sytner Group.
It was reported on Friday that the Yorkshire dealer group was close to collapse, and that Volkswagen Group had lined up Sytner or JCT600 to take the business over.
Richard Alexander Group had closed a VW outlet at Otley in mid-November. The company's supply of new cars from Volkswagen had been put on hold early last week after concerns about its future viability.
DATED: 05.12.08
FEED: AM
Daihatsu Expected to remain profitable
IM Group expects Subaru and Isuzu UK to only break even this year, while Daihatsu is expected to remain profitable.
Andrew Edmiston, managing director of the importer, spoke to AM shortly after IM Group made 19 redundancies from all parts of its automotive business in order to prepare for the recession.
This year Daihatsu has enjoyed 2.01% growth in registrations, though Subaru’s new car sales dropped 15.8%.
Edmiston said the brand was moving away from its “turbo phenomenon”, when its rally-inspired Impreza models were in demand, to a diesel era with Subaru targeting new customers who want better economy as well as its all-wheel drive technology and dynamic driving character.
Subaru’s best year was 1999, when it achieved 12,000 registrations. In the next couple of years, Edmiston hopes to restore and overtake that, with a target of 15,000 units annually, but the market slowdown may delay that ambition.
Subaru had prepared a management structure, based on its 15,000 unit targets, of three general managers each in charge of a large region of the UK.
This was abandoned, and former Subaru managing director Sam Burton was brought in as sales director to lead the entire network’s sales strategy.
“Everybody is in for a tough time over the next two years. It’s not going to be a question of growth, but who loses the least ground,” Edmiston said.
He has no plans to reduce the network, even if sales decline.
Edmiston wants dealerships well-placed to attract new business and improve customer service.
The group’s profitability has been hurt by the strength of the yen, narrowing the margins left on cars imported from Japan.
But concern that IM Group’s UK automotive businesses will only break even is offset by performance in Scandinavia.
DATED: 05.12.08
FEED: AM
Nuyers sought for Volvo
Ford yesterday announced it is reviewing its options with its Volvo brand, which could include a sale.
The carmaker said the decision to re-evaluate strategic options for Volvo came in response to the fall in the global new car market.
Ford is trying to strengthen its balance sheet. It meets with the US Congress tomorrow, together with Chrysler and General Motors, to ask for a $25bn state bail-out to cover restructuring costs.
“Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo as we implement our ONE Ford plan,” said Ford President and CEO Alan Mulally.
“Volvo is a strong global brand with a proud heritage of safety and environmental responsibility and has launched an aggressive plan to right-size its operations and improve its financial results. As we conduct this review, we are committed to making the best decision for both Ford and Volvo going forward.”
Ford said the review likely will take several months to complete. In the meantime, Ford will continue working closely with Volvo as it implements its restructuring plan under CEO Stephen Odell, who was appointed to lead Volvo earlier this year.
At the same time, Ford and Volvo will continue to put in place processes that allow Volvo to operate on a more stand-alone basis in the absence of the Premier Automotive Group structure, an effort which began in November 2007 following a previous review by Ford of strategic options for Volvo.
“Outstanding safety, an increased focus on environmentally friendly vehicles and contemporary Scandinavian design will continue to be the foundation upon which we will build a strong Volvo business for the future.” Odell said. “We intend to build upon our strong brand heritage and to appeal to our global customers with vehicles like the new XC60 – the safest car Volvo has ever built. Volvo also will introduce seven low-emission models in 2009, giving us the best environmental product range in the premium segment.
“We have a strong brand presence in Europe, North America and the Asia Pacific region, and are growing in key markets such as China and Russia, where we are the leading premium brand.”
DATED: 05.12.08
FEED: AM
Tuesday, December 02, 2008
Solent Group Collapses
Solent Group, which represented Citroen, Mazda and Nissan, has ceased trading.
Staff arrived for work on Friday morning to find the businesses in Portsmouth, which included the used car site Petworth Car Sales, still locked.
A message to customers on the group's website states: "It is with regret that due to adverse trading conditions, the directors have had to take the decision that the business must close.
"We are in negotiation with the banks to appoint an administrator and relevant parties will be contacted in due course, once this has been achieved.
"For staff, if you have any queries, please contact your line manager. "For customers, we apologise for any inconvenience that this has caused and if we are currently working on your car, or you are awaiting a delivery, please contact us by e-mail."
DATED: 02.12.08
FEED: AM
LCV contact centre is launched
Nissan launches a dedicated LCV database and customer contact centre this month as part of its bid to increase commercial vehicle sales.
The investment is being made in order to support dealers who have been tasked with tripling van and light truck registrations by 2012 (Nissan to make push for commercial sales, AM October 31).
Tony Lewis, LCV sales and marketing director at Nissan Motor GB, said customers had confidence in the product, but dealers wanted more support in managing leads and building customer relationships.
“This is all about customer relationships, not cold calling,” said Lewis.
“Often an LCV customer could be in the market in six months’ time.
"A lot in the industry don’t see them as current prospects, but it can take three months to make a specialist van conversion so we need to be prospecting them ahead.”
Nissan wants to identify how and when its LCV customers want to be contacted, so it can meet their needs but leave them to focus on running their business.
The LCV specialists in Nissan’s retail network will be trained in commercial vehicle knowledge.
This includes a range of training programmes brought in from Nissan Europe, including e-learning modules for sales and aftersales.
However Nissan also wants all sales staff to have an understanding of its van and light truck range.
DATED: 02.12.08
FEED: AM
GM's emergency meet with lenders
General Motors was in emergency discussions with its lenders at the weekend, reports The Sunday Times.
The company's chief executive Rick Wagoner is trying to sort a deal by tomorrow to secure £7.8 billion ($12 billion) in financial aid from the US government.
Wagoner is attempting to persuade some of its debt holders to swap part of the firm's $43 billion (£28 billion) debt pile for shares, to bolster their balance sheet.
DATED: 02.12.08
FEED: AM
Daimler and Cerberus start $7bn row
Cerberus has accused the German carmaker of knowingly selling a damaged asset last year. The private equity firm insists that Daimler breached the terms of a $7.2 billion deal to sell 80.1 percent of the business in August 2007. In a statement the equity firm said that Daimler had made "extraordinary changes" to its underwriting standards for vehicle leases and financing between February and August 2007 when the deal to sell Chrysler closed. Cerberus said those changes would have boosted sales of Chrysler, Jeep and Dodge vehicles but at the cost of shifting risk to the balance sheet of Chrysler and its financing arm. It added that Daimler had "intentionally and materially breached its obligations" under the Chrysler deal in other ways but did not elaborate further. Cerberus is said to be interested in buying the remaining share of Chrysler from Daimler. It is currently seeking $7bn in emergency federal aid for Chrysler and must submit plans to the US Congress on how it will restructure the business to make it more viable. DATED: 02.12.08 FEED: MT |
Daimler and Cerberus appear to be headed for a protracted legal dispute after the private equity firm launched an audacious bid demanding more than $7bn from the carmaker over losses that followed its 2007 acquisition.Ford says it may sell Volvo
The U.S. automaker said it would re-evaluate "strategic options" for the Swedish premium brand.
Ford cited the significant decline in the global auto industry and economic downturn, particularly in past three months, as the reason for the move.
"Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo," said Ford CEO Alan Mulally in a statement.
London & Scottish enter Administration
| London Scottish Bank plc (the 'Company' or 'Group') announced on 17 September 2008 that it continued to have a shortfall of regulatory capital and was engaged in discussions that might or might not lead to an offer for the Group. |
Whilst a number of parties remain interested in acquiring the Group, there can be no certainty that any offer will be made for the Group on a viable basis or that the regulatory capital shortfall can be remedied in the short to medium term. Without the certainty of an offer for the Group or the regulatory capital shortfall being remedied, the FSA yesterday took action to impose a requirement on the Company's permission to prevent it from accepting deposits and the Company is therefore unable to renew maturing deposits. Consequently, the Company instructed its lawyers to take immediate steps to petition the Court for an Administration Order, which was made by the Court at 11.54pm on 30 November. Thomas Burton, Margaret Mills, Thomas Jack, and Simon Allport all of Ernst & Young LLP have been appointed as joint administrators. HM Treasury and the Financial Services Compensation Scheme have confirmed that no FSCS Eligible Claimant will lose any money on their deposits as a result of the administration. The Company will seek to work closely with the administrators to minimise the effect on employees. Accordingly, the Company has requested that its shares be suspended with immediate effect from trading on the London Stock Exchange and listing on the Official List. |
