F&I Management & Training

Aixam Mega has bought the assets of the Nice Car Company, the London-based electric vehicle dealer that went into administration in November. Aixam Mega will run Nice's sales and service facilities in London, while administrative functions will be handled at Aixam Mega's headquarters in Rugby, Warwickshire. Nice has marketed Aixam Mega's Mega City all-electric urban vehicle and Mega Multitrucks range of ultra-light commercial vehicles in London since 2006. Aixam Mega's UK general manager Lawrence Holland said that the acquisition gave existing Mega customers in London continuity of aftersales service. He said: "We are fully committed to developing the market for ultra-light electric private and commercial vehicles across the UK, and regard this dealership as an important part of our growing dealer network. "We have retained the key sales and service facilities, as well as some personnel, to make the transfer of business as seamless as possible. Mega drivers should be reassured that, from their perspective, it is now 'business as normal' at Nice Car." Sales of electric cars plummeted in the UK last year, but Mr Holland said: "Sales of electric vehicles have slowed during the recent economic downturn, and this has contributed to the problems experienced by the former Nice Car management team. But over the longer term sales have been growing steadily. We believe that this growth will continue and that electrics will buck the trends affecting the wider automotive sector."

DATED: 16.01.09

FEED: AW

Vauxhall aim to secure new workers' deal by month end Vauxhall bosses say they have until the end of January to secure the future of their two UK plants by concluding a 'less work for less pay' deal with unions. The agreement will mean no compulsory redundancies and will help preserve the plants at Ellesmere Port and Luton. An 'umbrella' deal has already been struck between General Motors Europe and British and European trade unions, which comprise a range of flexible working arrangements.

DATED: 16.01.09

FEED: AW

Outsourcing sales and marketing services in the motor industry is likely to increase in 2009 as manufacturers move to cut overheads by making widespread redundancies.
Motor industry consultancy Network Automotive said many manufacturers are already drawing up plans to reduce headcount dramatically and will place key programmes such as public sector sales and Motability with external suppliers.
Managing director Colin Bruder said: "The recession is placing manufacturers in a Catch-22 situation.
“There are several new car sales sectors, and Motability is the best example, where they cannot afford to continue employing dedicated sales and marketing teams but cannot afford to ignore the sales opportunities."
He added that many manufacturers will solve this by outsourcing programmes to consultants, removing permanent staff from their overhead and turning to external suppliers to add flexibility.

DATED: 16.01.09

FEED: AM

Measures to incentivise motorists to buy more fuel-efficient cars have been announced by the Chinese government.
It will halve the tax on cars with engines up to 1.6-litre to 5% and put aside £500m to encourage rural consumers to part-exchange their old cars for newer low emissions models.
It will also provide £1bn for the largely state-run Chinese car industry for development of alternative fuel vehicles in the next three years.
Hit by the global downturn, China's car sales have slowed to a forecast 5% growth this year, the lowest for a decade. Its government wants to boost this to at least 10%.

DATED: 16.01.09

FEED: AM

Kia Motors is starting full scale production of six versions of its Cee’d model with stop and start engine technology.
The models are being built at Kia’s Zilina plant in Slovakia and are expected to save drivers up to 15% in fuel costs.
Although left-hand-drive cars will start to hit showrooms during the spring, customers in the UK will have to wait until right-hand-drive production starts much later in the year.
A confirmed date for UK sales has not yet been set.
Kia’s research teams are also developing hybrid, fuel cell and electric vehicles for volume production in the next decade.
Paul Philpott, managing director of Kia Motors (UK), said: “We want to bring this advanced technology to UK customers as soon as possible but sadly we will have to wait for right-hand drive production to begin.”

Kia’s Idle Stop & Go (ISG) system automatically switches the engine off when the car is stopped in traffic and restarts the engine instantly when the driver wishes to move again.
While the car is stationary, if the clutch pedal is depressed, the engine is instantly re-started – automatically – so there is no delay in setting off as the engine re-starting process is accomplished in the time it takes the driver to select first gear.
The new ISG-equipped Kia Cee’d cars will also benefit from a new-generation, lighter weight manual gearbox which offsets the extra weight of the ISG system components.
In Europe, Cee’d ISG cars will be available with a choice of 1.4-litre and 1.6-litre petrol engines and in the three Cee’d family bodystyles – five-door hatchback, five-door sporty wagon and three-door Pro_Cee’d.
Later during 2009, similar ISG technology will also be made available for the 1.6-litre diesel Cee’d and ISG technology will appear on other Kia models in 2010.

DATED: 16.01.09

FEED: AM

The New Year has brought a new chairman for Toyota GB PLC, Naoya Taniguchi. Mr Taniguchi took up his post on 5 January, replacing Shimpei Kobayashi, who has returned to Japan to take up a new assignment within Toyota Motor Corporation. Mr Taniguchi, 53, has a long and distinguished career with Toyota, having joined the company in 1978 after graduation from Hitotsubashi University's Department of Commercial Science. In 1985 he moved to the European division to take charge of Toyota operations in Germany and Denmark and in 1991 joined Toyota Deutschland as co-ordinator in charge of sales, marketing and public relations. Mr Taniguchi returned to TMC in Japan from 1995 to 2001, then took the post of Group Vice President of Toyota Motor Sales USA, co-ordinating mid to long-term product strategy, the Scion brand, PR and strategic planning. He joins Toyota GB from TMC's Global Marketing Division, where he was Brand Planning General Manager. Mr Taniguchi is married and has a 23-year-old daughter. His move to the UK will give him more opportunities to pursue his hobbies of European history and church architecture and playing golf.

DATED: 16.01.09

FEED: AW

LDV is seeking talks with the Government to discuss the prospect of immediate financial assistance following the extended shutdown of its Washwood Heath plant into February.
As with others in the industry, LDV is struggling to forecast when sustained demand for new vehicles will recommence and losses are presently being incurred due to little or no production and reduced sales.
Guy Jones, PR and marketing director for LDV, said, “LDV and the excellent workforce here have ‘done all the right things’ that the Government has asked.
“We have invested heavily in the company creating 200 new jobs, transforming the skills of our workforce and developing cleaner electric vehicles, but the scale of the downturn has devastated the entire sector. LDV is producing the vans of tomorrow today and we hope the Government recognise and supports such UK innovation.”
LDV is owned by Russian manufacturer GAZ Group, which has invested $100m (£69m) in new technology, models, markets and workforce since it acquired the company in 2006.
LDV stated that Government assistance would be a last resort and it is still exploring all other avenues of support.
This includes preparing an application to the European Investment Bank for funds to continue its investment in green technology, seeking foreign investment, and continuing to pursue an aggressive and innovative marketing strategy to rekindle demand.

DATED: 16.01.09

FEED: AM

Reuters reports this morning that Renault has been in talks with Chrysler about a deal to sell the Jeep brand.

The news agency cites three sources with knowledge of the talks, but reports a Renault spokeswoman denying it has held any such discussions with Chrysler.
Cash-strapped Chrysler has until March to develop a long-term restructure programme if it is to secure further help from the US government.

A source told Reuters that Renault wanted to clarify whether acquisition of some Chrysler assets would jeopardise the company's access to government funding.

DATED: 16.01.09

FEED: AM

Today the government launched a scheme to guarantee billions of pounds of loans to small and medium-sized companies.
Business secretary Peter Mandelson said he hoped the loan guarantees would help businesses to refinance up to £20bn of existing loans, put in danger by dwindling bank lending.
"UK companies are the lifeblood of the economy and it is crucial that government acts now to provide real help to support them through the downturn and see them emerge stronger on the other side," Mandelson said.
It is the latest attempt the government to kickstart an economy ravaged by a global credit crunch.
The plan includes a £10bn Working Capital Scheme, securing up to £20bn of short-term bank lending to companies with up to £500m turnover, and an Enterprise Finance Guarantee Scheme, securing up to £1.3bn of additional bank loans to firms with up to £25m turnover.

"We know that some companies are struggling to secure the finance they need, not because of any failure in their business but due to the tougher credit conditions," Mandelson said.
"That is why we have designed a package of measures addressing different forms of credit and providing real help for businesses."
The government also pledged to help businesses raise new long-term finance by investing in viable companies which have high levels of existing debt through a new £75m enterprise fund, to which banks would contribute.

DATED: 16.01.09

FEED: AM

Vauxhall workers will not be made redundant - as long as they take a pay cut or agree new flexible working procedures. Bosses at parent company General Motors say they have reached agreement with union leaders across Europe for a 'new deal' to protect jobs. Hans Demant, managing director and vice president of engineering at GM Europe, said: "We have an umbrella agreement. We are looking at less work and less pay." Car bosses and unions have agreed that among the flexible options for workers at Vauxhall plants at Ellesmere Port and Luton will be: pay cuts, sabbaticals on 30% salary, four-day weeks and cuts in shifts. Mr Demant said: "As long as these agreements are in place we will not go for forced redundancies."

DATED: 13.01.09

FEED: AW

Car dealership group Inchcape is considering a significant fundraising as it negotiates new financial arrangements with its lenders and the steepest sales downturn in recent history. Inchcape is examining options which include a rights issue or share placing, although a decision about whether to pursue such an option is not imminent. Inchcape, which is being advised by Deloitte on the talks with its lenders, has committed bank facilities of more than £1 billion, well in excess of its debt burden. Inchcape declined to comment to the Sunday Telegraph, which broke the story. However, yesterday (Monday, January 12), the company issued a statement in which it said: "The Group expects trading conditions to remain difficult and is engaged with its finance providers to ensure that these arrangements are appropriate for a downturn in trading. As would be expected, it is also evaluating a range of options for its capital structure including a potential equity issue. "As outlined in our trading update on 15 December 2008, we continue to expect to report underlying results for 2008 in line with our previous expectations and the Group remains in compliance with its financing arrangements. A further announcement will be made in due course."

DATED: 13.01.09

FEED: AW

A car dealership which employs 130 staff at branches in North and East Yorkshire has gone into receivership after a sharp fall in sales. The deVries company, which had a £62m-a-year turnover, has outlets in Hull, York, Scarborough, Northallerton and Stockton on Tees. But poor sales and "major trading issues within the group" have put the firm into difficulties. Receivers Grant Thornton said it could not rule out branch closures. The company was founded in 1991 and has five Honda dealerships across North and East Yorkshire Operations Keith Hinds, of receivers Grant Thornton, said: "We are currently looking at maintaining as many trading operations as possible but we cannot discount the need to close some or all of the sites if buyers could not be found in the near future. "We are currently working with Honda to safeguard customer deposits and are maintaining full after sales services to customers." Bernard Bradley, general manager of Honda Cars, said: "This move was unavoidable due to major trading issues within the group which have been exacerbated by the current financial downturn. "We will now be making every effort to contact and reassure customers in the vicinity of the dealerships who may be affected."

DATED: 13.01.09

FEED: AW

Volvo is celebrating after bucking national trends and beating the downturn with rising sales of its new cars during 2008. According to figures released by the Society of Motor Manufacturers and Traders (SMMT), Volvo enjoyed a sales increase of 10.98% in comparison to 2007. Market share in the UK was also up 25% on the previous year - rising from 1.25% to 1.56%. This strong end to the year has also been carried over in the early days of 2009 with sales up 16 per cent compared to the same period last year. Volvo sold a total of 33,358 cars during 2008 and was one of only nine manufacturers on the 52-strong SMMT list to have experienced positive sales growth. The results are in marked contrast to the new car market as a whole, which experienced an overall drop of 11.32% in 2008 - equivalent to 272,212 fewer cars sold to UK customers. Sales of the Volvo C30 SportsCoupe rose by 27.6% thanks, in part, to the launch of the sports inspired R-DESIGN specification. The Volvo S40 and V50 also benefited from the introduction of the R-DESIGN specification and they enjoyed even greater success, with increases of 39.4% and 68.8% respectively. The versatile Volvo V70 premium estate also bucked national trends with sales rising by 9.6% in its segment. Nick Connor, Sales Director at Volvo Car UK Ltd, said: "Our efforts to realign price and trim levels gave our model range an additional edge in 2008. "The introduction of the R-DESIGN package on C30, S40 and V50 models has also played a major role in attracting new customers to the brand, while used car experts CAP say it's also had a positive effect on residual values too, further increasing the cars' desirability at a time of economic uncertainty."

DATED: 13.01.09

FEED: AW

Administrators have been appointed at De Vries Group, a retailer with five Honda dealerships in Yorkshire and Teeside. Its five outlets - Northallerton, Scarborough, York, Hull and Stockton-On-Tees - will continue trading under administrators from Grant Thornton to reduce stock levels and fulfill outstanding aftersales bookings.

Honda UK said it has been in talks with existing and prospective dealer partners and it hopes to announce new representation by the end of March. It expects one site to close.
Bernard Bradley, its general manager, cars, told AM that Honda had been working with De Vries for several months, providing "management support and significant financial support as well".

It is the second failure of a major Honda partner since the downturn in the new car market began last summer. Amethyst Group, which represented Honda in Cheltenham, Gloucester and Chippenham, went bust in similar circumstances at the end of October. All sites ceased trading.
Bradley said both De Vries and Amethyst had "issues existing in both businesses that were exacerbated by the current economic conditions."

Keith Hinds of Grant Thornton said redundancies among De Vries 130-strong workforce could not be ruled out. He added: "We are currently looking at maintaining as many trading operations as possible but we cannot discount the need to close some or all of the sites if buyers could not be found in the near future."

DATED: 12.01.09

FEED: AM

Not all car marques had a wretched 2008: Jaguar and Mini both managed to record a sales boost last year.

Over at the Detroit Motor Show, the chastened big car companies have been unveiling their latest models – and in the case of Jaguar and BMW, some impressive figures. Jaguar, whose owner is currently in talks with the Government about some kind of financial aid package, said its global sales were up 8% last year – a handy reminder to the Treasury that this is a brand worth saving. Another brand on the up is BMW’s Mini, with sales soaring 29% in the US last year. It’s a gloomy time for the UK car industry – but these two British-built marques provide some cause for optimism…

Jaguar, which has been in the news for all the wrong reasons lately, was over in Detroit to unveil its new XFR model. You’d be forgiven for wondering what chance it has of flogging a load of £60,000 cars this year (even if it can rack up 225mph). But clearly car buyers haven’t fallen out of love with Jaguar: it sold 8% more cars last year, despite the tough conditions. Unfortunately, Land Rover is running a lot less smoothly – its sales fell last year, as buyers opted for smaller vehicles. So further job losses are likely at the combined group.
One leading beneficiary of this downsizing has been Mini, the iconic British brand now owned by German behemoth BMW (but built in the UK - production has just re-started after an extended Christmas break). Globally, its sales inched up a more modest 4% - but the most eyebrow-raising figure was its success in North America, where sales rose by more than a quarter (making it Mini’s biggest market). Bigger has always seemed to be better when it came to US cars, but it looks like buyers are finally thinking smaller. Good news for BMW; bad news for the US car-makers.
OK, so these two marques aren’t actually British-owned any more. But there’s still hope for the UK car industry, not least because a Government obsessed with boosting employment (hence its summit today) will find it hard to stand by and watch thousands of auto workers get laid off. Although it seems nervous about committing to a bailout, perhaps because it’s worried about setting a dangerous precedent (the UK porn industry could be next, if the US is anything to go by), it’s clearly mulling some alternative schemes.

Top of the list at the moment seems to be a support package for motor-finance companies, which makes sense; nobody’s going to be buying cars if they can’t get their hands on an affordable loan. Now Business Secretary Peter Mandelson has admitted that the Treasury may provide additional funding or loan guarantees to help oil the wheels (so to speak). But it remains to be seen whether this will be enough to save an industry facing its biggest crisis for decades...

DATED: 12.01.09

FEED: MT

The taxpayer is left with a 43% stake in the new Lloyds-HBOS superbank after an unpopular rights issue...

Lloyds Banking Group, the superbank formed by the merger of Lloyds TSB and HBOS, will be 43% state-owned after institutional shareholders cold-shouldered the latest capital-raising effort today. The two banks had offered 30m of new shares via a rights issue – and to nobody’s great surprise, failed to sell about 99% of them. As underwriter, the government was forced to step in and buy the lot – and since it’s funding this with £16bn or so of taxpayers’ money, that means we own the stake. So we’ve all got a vested interest in its recovery now...

HBOS and Lloyds were seeking £11.5bn and £5.5bn respectively to finance the merger, which was rushed through by the Government in a bid to prevent the former’s collapse at the height of the banking crisis. But with both banks continuing to trade well below the rights issue offer price, investors had no interest in shelling out for the new shares. Just 0.24% of the 17.7m HBOS shares on offer were sold, while Lloyds didn’t fare much better, flogging just 0.5% of its 13m shares. So the Government was left with a 58% stake in HBOS and a 30% stake in Lloyds – equivalent to a 43% stake in the combined entity.
It’s no great shock that nobody wanted the shares. HBOS shares were up for sale at 113.6p, and are currently available on the open market for about 84p, while Lloyds shares were on offer at 173.3p, also well below its current market price of about 140p. So it’s really a wonder that they managed to shift any at all. It also means that the Government is now sitting on an even bigger loss on its various banking shares, given that they’re all worth substantially less than the price paid for them.

Still, the hope is that this new superbank – the UK’s biggest, controlling more than a quarter of the UK personal bank account and mortgage markets – will eventually turn out to be a good investment for the taxpayer. The irony is that it might be at our own expense: the government rode roughshod over competition rules to push the deal through, but even the Office for Fair Trading has warned that it could lead to a ‘substantial lessening’ in the choice of financial products. So your new investment may unfortunately come at a price.
And it hasn’t been an auspicious start for the Lloyds Banking Group (which will start trading later this month): it admitted today that it’s been forced to shell out £180m in fines to US regulators after altering the details of its Sudanese and Iranian clients to get round anti-terror laws. Not exactly the best way for a new superbank to make friends and influence people...

DATED: 12.01.09

FEED: MT