Friday, January 23, 2009

Service plan to give Vardy aftersales lift

Peter Vardy Ltd is ready to launch its own service plan after a three-month trial which it hopes will boost aftersales activity at its four dealerships.
Service Assist will initially be sold with new cars on a peace of mind and affordable ownership promise before being extended to all-makes used cars and service customers.
The scheme is offered to new car buyers only at the point of collection/delivery and post delivery and not as part of the initial car sales process.
The company believes that there is only so much a customer is willing to accept during the sales process when they will also be offered finance and insurance products and other upsell and accessory products.
Chief executive Peter Vardy is looking for penetration of around 30% on new car sales with staff paid commission. During the trial, staff achieved a sales conversion rate of 15-20%.

“Our target in 2009 is to increase service retention by 10%. At the moment we are all over the place with retention ranging from 42% to 70%,” Vardy said.
The Vauxhall, BMW and Chevrolet retailer has also relaunched its website and has added finance and insurance calculators as well as What Car? reviews of its models. Vardy describes the site as his “fifth dealership”.
Internet sales manager Euan Cameron says around 30% of customer enquiries are via the website with half through email and the rest coming into the showroom after doing an online search.
In December this equated to around 25 enquiries per day. Five per cent of these enquiries are buying their finance online.
The group puts as much information about the cars online as possible – except mileage. “This triggers them to contact the dealership,” says Cameron. “Our fear is that if we give away too much information, enquiries will fall.”
Customers can also request servicing, but they cannot specify times. “I want to do EasyJet style service bookings with different prices for different times of the day, but the software isn’t there yet,” says Vardy.

DATED: 23.01.09

FEED: AM

Fiat-Chrysler-Peugeot ?


TRADING of shares in Fiat SpA has been suspended, following rumours that the Italian giant could merge with Peugeot
Fiat, which this week announced it had taken a 35 per cent share in Chrysler, denies the speculation.
However, the effect on the market has seen the group’s share price tumbling - and the stock of Peugeot-Citroen rising.
The attractions of the deal are clear - with the potential to sell 9 million cars, the company would be the 3rd largest in the world. But there are clear and massive difficulties in any such merger, not least the ongoing crises engulfing the industry.
Of course, they are also flatly denied by all parties. But even so, many will be keeping a watching eye on it…

DATED: 23.01.09

FEED: CDM

Thursday, January 22, 2009

SAAB could run separately from GM

Saab could run as a separate business in a move by General Motors to make the brand more attractive to potential buyers.
“Saab has been negotiating with GM and the Swedish government about becoming a more independent company, initially as part of GM,” a GM source said.
It means the Swedish carmaker would take control of its decision-making and finances, reported Automotive News Europe.
GM executives will decide Saab’s future before February 17, when they submit a business plan to the US government.
The sale of Saab has been part of GM’s strategic review which started in December.
Last week at the Detroit auto show, GM vice-chairman Bob Lutz said: “Frankly, they’ve [Saab] have been on GM life support.”

DATED: 22.01.09

FEED: AM

Toyota takes top spot from GM

General Motors has played down the fact its no longer the World's biggest carmaker following 77 years in the top spot.

Toyota officially overtook the American manufacturer after reporting this week it sold 8.97 million cars last year compared to GM's 8.35 million, reports The Times.

GM'S sales analyst Mike DiGiovanni said: "I don't think being number one in global sales means much at all to the average consumer. I think it's an internal benchmark of our industry."
The US manufacturer is working to an end-of-March deadline to present a viability plan to the country's Government to prove it deserves the $13.4 billion (£9.7 billion) emergency loan it was given to avoid bankruptcy.

DATED: 22.01.09

FEED: AM

Buy Out secures dealers future

REGENT Automotive Ltd has bought 3 of H.R. Owen’s London Volvo dealerships, in a management buy-out.
The Marylebone, Colindale and Chiswick sites will now trade under the

'Volvo Cars London' name.


It is the latest move in H.R. Owen’s commitment to dispose of all its non-specialist brands.
Regent MD Tracey Perry leads the buy-out, with financial funding from Barclays Bank and Ford Financial. It secures the jobs of 110 people across the 3 sites, which will turn over £40 million in 2009.
The deal includes Volvo’s UK flagship site in Chiswick, which opened in October


Also joining Perry, who’s had a 26-year career with Volvo, are aftersales director Frank Fisher, plus fellow directors Barry Green and David Jaggar.
‘This is a fantastic operation with excellent potential, a loyal team of staff and a great brand in Volvo,’ said Perry.
‘The 4 directors involved also bring a wealth of industry expertise to this venture, and with Volvo sales bucking national trends and increasing in the UK, this is a great opportunity for Volvo Cars London to flourish.’
Last year, Volvo sales increased by almost 11 per cent, in a market so many makers have suffered heavily.
But what sets the new team apart? ‘We have experience, knowledge and enthusiasm of both the brand and the market place,’ said Perry. ‘We are really excited about applying this in our own way.’


DATED: 22.01.09


FEED: CDM

Labels:


Buy Out secures dealers future

REGENT Automotive Ltd has bought 3 of H.R. Owen’s London Volvo dealerships, in a management buy-out.
The Marylebone, Colindale and Chiswick sites will now trade under the
'Volvo Cars London' name.

It is the latest move in H.R. Owen’s commitment to dispose of all its non-specialist brands.
Regent MD Tracey Perry leads the buy-out, with financial funding from Barclays Bank and Ford Financial. It secures the jobs of 110 people across the 3 sites, which will turn over £40 million in 2009.
The deal includes Volvo’s UK flagship site in Chiswick, which opened in October

Also joining Perry, who’s had a 26-year career with Volvo, are aftersales director Frank Fisher, plus fellow directors Barry Green and David Jaggar.
‘This is a fantastic operation with excellent potential, a loyal team of staff and a great brand in Volvo,’ said Perry.
‘The 4 directors involved also bring a wealth of industry expertise to this venture, and with Volvo sales bucking national trends and increasing in the UK, this is a great opportunity for Volvo Cars London to flourish.’
Last year, Volvo sales increased by almost 11 per cent, in a market so many makers have suffered heavily.
But what sets the new team apart? ‘We have experience, knowledge and enthusiasm of both the brand and the market place,’ said Perry. ‘We are really excited about applying this in our own way.’

DATED: 22.01.09

FEED: CDM

Wednesday, January 21, 2009

Subaru launches web-based dealer support

Subaru has launched a web-based programme to provide dealers with the latest product developments and information about the Subaru brand, designed to keep the network ahead of its competitors.
The S Drive aims to improve dealer performance through increasing morale and motivation by encouraging consistent performance across key measures, said Subaru.
It can be used to build an understanding of the Subaru brand, provide information on the latest training courses and give users the opportunity to communicate directly with Subaru senior management via an “ask the board” chat line.
Subaru hopes to engage all dealer staff, on the basis that it is the whole team that makes the difference from a customer perspective.
Dealer staff who score well in product knowledge quizzes can earn the user Fujis, the S Drive currency. Each Fuji is worth £1 and can be redeemed against prizes from an online gift catalogue, including gift vouchers and sailing weekends.

DATED: 21.01.09

FEED: AM

800 Dealers in Motab. Trial

Motability Operations is allowing 800 dealers to accept trade-ins from disabled customers leasing cars because it wants to remove a barrier to potential new business.New Motability customers have to make an advance payment averaging around £600 for all but 250 of the 4,000 models/derivatives available in the lease scheme.

Motability fears some business is lost because customers can’t make the payment.Around 4,500 dealers provide cars on behalf of Motability, which pays them a fee for each vehicle provided and a standard service fee for maintaining the vehicle throughout the three-year lease. Trade-in trials started in September, but more dealers will start accepting part-exchanges by April. Motability said the priority is to build a significant volume of dealers, rather than to iron out potential problems.Mike Betts, Motability Operations chief executive, said 80% of its new customers already owned a car. Offering a part-exchange service put Motability in line with other car-buying channels, and attracted more customers.“Where dealers offer a trade-in, customers can both realise the value of their existing car to help meet the cost of an advance payment, and keep their old car until the new one is ready,” he said. “The specifics of the trade-in arrangement are down to the dealer and the customer.”Motability said: “Makes and models so far are representative of the broader car market. Around a third of non-customers drive cars that are more than 10 years old, which means there is an additional environmental benefit in customers trading in for a more modern car.”

DATED: 21.01.09

FEED: AM

Trefik takes 21% stake in Lookers

Trefick, the private investment vehicle controlled by entrepreneur Jack Petchey has taken a 21.2% stake in dealer group Lookers. The company has acquired 38,711,800 ordinary shares of 5p each in the company, representing approximately 21.31% of the company's issued share capital. All shares are voting shares, one vote one share. The 83-year-old entrepreneur has a background in the motor trade as an Austin Morris dealer and a track record of investing in dealer groups. Mr Petchey is a philanthropist whose Jack Petchey Foundation has given grants of more than £60 million to charities working with young people in east London.

DATED: 21.01.09

FEED: AW

Tuesday, January 20, 2009

Jardine drops Chrysler

Top 10 AM100 group Jardine Motors has dropped its three Chrysler sales franchises.The group has closed its Lancaster Chrysler Dodge and Jeep dealership in Bishops Stortford, and ended new car sales at its dealerships in Lakeside and Southend.Both Lakeside and Southend will remain as authorised repairers and Jardine will continue to sell used stock at the sites. Alun Jones, Jardine chief executive, said: “We had a lease that was going to run out at the end of 2008 at Bishops Stortford, but we decided to end it early. “The decision was property driven, but we have also been looking at the sales climate over the next six months and decided the best thing to do was to exit new car sales with the franchise.”Jones told AM that dealers and manufacturers are generally experiencing the same kind of difficulties at the moment. He said: “We’re looking at our cost bases and so are they. "We’re currently trying to minimise our exposure to stock and I think manufacturers are responding to that. Cuts in production should relieve the pressure.“We’re trying to reduce the amount of low mileage used cars we have and concentrate on higher mileage models to give us a wider spread.”A large number of UK dealers are expected to exit the Chrysler, Jeep and Dodge franchises in 2009 due to the decline in their market shares from 0.77% in 2007 to 0.64% in 2008, according to SMMT figures. The carmaker wants to work with its retailers to improve profitability.

DATED: 20.01.09

FEED: AM

Porsche makes mandatory offer for Scania

Porsche has had to make a mandatory offer of £2.6 billion for Scania following its increase in Volkswagen to 50.76%.
VW owns 69% of Swedish-based truck maker Scania and Porsche had to legally make an offer, although it has no interest in acquiring shares in the company.
Under Swedish takeover regulations, Porsche was required to make a bid for Scania after it earlier this month raised its stake in the truck maker's main shareholder, Volkswagen, above 50 percent, giving it indirect control of Scania.

DATED: 20.01.09

FEED: AM

Fiat confirms plan for 35% stake in Chrysler

Fiat S.p.A. and Chrysler LLC confirmed Tuesday that the Italian company intends to acquire an initial 35 percent stake in the U.S. carmaker.In a joint statement, Fiat, Chrysler and Chrysler's majority shareholder Cerberus Capital Management L.P, said they have signed a non-binding term sheet to establish a global strategic alliance. The pact would provide Chrysler with access to competitive, fuel-efficient vehicle platforms, powertrains, and components to be produced at Chrysler manufacturing sites, the companies said. Under the terms of the deal, Fiat would make available its distribution network in key growth markets. Substantial cost savings opportunities would be available to the alliance, the companies said.

DATED: 20.01.09

FEED: ANE

Aviva sells HPI to Solera

US group Solera has bought vehicle information provider HPI from insurance giant Aviva. The £81 million acquisition, which had been several months in planning, slots HPI alongside Solera’s only other UK-based business, Audatex. It provides insurers and bodyshops with software for motor accident claims management.“The acquisition will help us meet some of the increased demand from our clients for access to integrated historical information on specific vehicles and specific clients,” said Solera chief executive Tony Aquila.Aquila said Solera intends to grow the HPI business model regionally and internationally. Brand extensions are already under consideration.Aviva, which owns Norwich Union and the RAC, last year announced plans to focus on core insurance and vehicle breakdown services. In November it agreed for German turnaround specialist Arques Industries to buy RAC Auto Windscreens, which Aviva had gained in its acquisition of the RAC in 2005.HPI, headed by managing director Joe Doyle and automotive director Daniel Burgess, has offices in Salisbury and Harrogate and employs around 180 people. Originally established in 1938, the vehicle provenance check provider has been part of Norwich Union since August 2004.
It holds a database of all UK registered vehicle data and histories and a national mileage register. In 2008, in a move to broaden its automotive offerings, it launched HPI Valuations, a residual valuation service headed by former CAP editor Martin Keighley.Aviva said the gross assets of HPI totalled £112 million as at the end of October. HPI has been a significant referrer of motor insurance leads to Aviva and this will continue, said Aviva.

DATED: 20.01.09

FEED: AM

Fiat Confirms Chrysler talks

Fiat Vice-Chairman John Elkann confirmed Tuesday the group is in talks over taking a stake in Chrysler LLC.Elkann did not release further details. Fiat will release a statement about the talks at 12pm CET on Tuesday.It is not a mystery we are talking with Chrysler, Elkann told Italian news wires. Fiat and Chrysler are discussing forming a strategic partnership that could include a Fiat equity stake in the ailing U.S. carmaker.If the deal is completed, Fiat would get a 35 percent stake in Chrysler in exchange for Fiat's platform, engines and transmission technology, sources told Automotive News Europe. Fiat would have an option to acquire up to 55 percent of the automaker over time, The Wall Street Journal reported.

DATED: 20.01.09

FEED: ANE

GM boss warns that Saab could close

General Motors boss Rick Wagoner has warned that the company's Saab subsidiary could close if a buyer cannot be found. Mr Wagoner said: "All options are on the table. We've had interest from buyers but we need to drive a resolution on Saab as fast as we can." Vice president Bob Lutz added: "Saab is a luxury we can no longer afford." A decision on up-for-sale Saab's future could be part of cash-strapped GM's restructuring plans that have to be presented to the US government before March 31. If GM fail to convince the government that they are viable, they risk losing a £12 billion cash bailout without which the car firm would be forced into bankruptcy.

DATED: 20.01.09

FEED: AW

French carmakers to get state aid

The French government could take a bigger stake in its battered carmakers in return for financial aid, Industry Minister Luc Chatel has said. The government is set to meet car firm chiefs on Tuesday and announce an aid package plan to help them cope with the impact of the economic crisis. President Nicolas Sarkozy earlier promised that France would put "a lot of money" into aid for the carmakers. The car industry is one of France's biggest employers. Aid plans Economy Minister Christine Lagarde said last week the government was set to announce measures to boost carmakers' capital and improve financing for car purchases. However, Mr Chatel said in a newspaper interview on Monday that nothing had been decided. "Carmakers' needs are not necessarily in the form of boosting their capital but in exchange for our financial support taking a stake in (companies') capital can, in some cases, be a fair trade," he told Le Figaro. This support plan will not be a gift - carmakers will notably have to commit to keeping industrial sites in France A new 300m euro (£270m; $397m) state-support fund for the industry would be launched ahead of a broader rescue package to be unveiled in late January, he said. The French government, which already owns a 15% share in Renault, is also pressuring carmakers not to pay a dividend to their shareholders in exchange for state funds. Another newspaper, Le Parisien, reported the broader rescue package could eventually be worth between 5bn and 10bn euros, and said the government was considering other measures such as deferring tax payments for carmakers' suppliers. Mr Chatel did not give any details on how the state would help France's biggest carmakers such as PSA Peugeot Citroen and Renault, but said several options were being considered. "Loans at favourable rates, loan guarantees, convertible bonds - we are studying all the possibilities." "The major issue is what is given in exchange. This support plan will not be a gift. Carmakers will notably have to commit to keeping industrial sites in France," he said. He said the plan would also cover foreign carmakers with sites in France. France has been in talks with the European Commission over the plan and Ms Lagarde said last week she had asked the Commission to coordinate EU aid to the car sector. Mr Chatel said there were limits to what the Commission would accept. "There are some measures that it is not prepared to allow - it is notably hostile to fiscal aid for a single sector. In any case, we will be acting within the broader framework of a European action plan," he said.

DATED: 20.01.09

FEED: AW

Fiat & Chrysler in Partnership talks

Fiat Group is in negotiations with Chrysler LLC to form a strategic partnership that could include a Fiat equity stake in the ailing U.S. carmaker.

The pact would help Chrysler speed up and strengthen its relaunch plan. According to people familiar with the matter, Fiat could give Chrysler access to its mini-, small-, lower-medium and upper-medium platforms, engines and transmissions. This would allow Chrysler to quickly build a complete new range of front-wheel-drive, low-emission vehicles.Chrysler, which was acquired by private-equity firm Cerberus Capital Management LP in 2007, saw its sales drop 30 percent last year and has been forced to throttle back on new investment. It received $4 billion in emergency government loans this month.

DATED: 20.01.09

FEED: ANE

Sunday, January 18, 2009

New Marshall Chief signals growth intent

A new chief executive, a new strategy: four months after executive chairman Robert Marshall told AM that Marshall Motor Group would not be looking to expand beyond its regional east of England heartland, the man he appointed as chief executive insists it is vital to look further afield for growth.

Daksh Gupta, who took up the post in November, claims the industry has “changed massively” since that interview with Robert Marshall, not least the slide into recession.“We should be open-minded to opportunities outside our core region. It won’t be Scotland or Wales, but there are lots of towns and cities that offer scaleable opportunities,” he said.“We have the balance sheet to grow and we are debt-free, but it’s all about the right opportunities.”

Gupta points out that Marshall has always grown during recessions, but he believes there are only limited options for continued expansion within its present regional base.
He is keen to add German marques to the Marshall portfolio.His focus will be on three key performance levers: operational excellence, customer satisfaction and manufacturer relationships. Gupta has already reorganised Marshall’s management team from a regional structure to a franchise system with the appointment of five franchise directors:

Adrian Lewis, previously The Car Shop managing director. He has used car expertise and takes on Chrysler Jeep and Ford.
Neil Owen, ex-Summit chief operating officer and former Jardine divisional director. He has operational expertise and will be responsible for Vauxhall.
Chris Sheppard, ex-Camden Retail and Polar Motor Group. He has an aftersales background and takes on Land Rover, Jaguar and Volvo.
Mark Furniss, ex-Inchcape Fleet Solutions finance director who is skilled in KPIs and acquisitions. He will oversee Nissan, Honda cars and motorcycles, Toyota, LDV, DAF and Ford LCV.
Paul Atkinson, ex-Jardine, becomes interim franchise director for Peugeot and Citroën while a permanent director is sought.
Gupta is also looking for someone to fill a sixth franchise director’s role while, this week, he has promoted Carole Minter to the board as HR director.
He believes the change to a franchise structure is crucial to improve car manufacturer relationships.“It is difficult to get into the detail of CSI and margins when you have to focus on lots of different franchises.”He has met and written to all 1,400 employees laying out his expectations and encouraging them to take greater ownership.“99% of errors are own goals; they are people errors and they happen because we allow them to happen,” Gupta said. “We are already seeing the early shoots of people taking ownership.”He added: “Every manufacturer has dealers in the upper quartile making returns of 3%-plus, so every dealer has to ask themselves ‘are we doing everything we can to make money?’.

DATED: 18.01.09

FEED: AM

End of the PT Cruiser

Chrysler is ending global production of its PT Cruiser this summer.
It hopes to try to sell the tooling for the retro-styled C-segment hatchback, which ceased sales in the UK last year, to raise some funds, said its president Tom LaSorda.
Last year, Russian carmaker GAZ bought the tooling for the last generation Chrysler Sebring saloon.
Since Chrysler Group's takeover by Cerberus it has also dropped the Crossfire coupe and roadster. Observers also expect it to kill off the Commander from its Jeep brand.

The moves leave UK dealers with the Sebring and 300C models and Grand Voyager MPV in Chrysler's range, plus Dodge and Jeep models.

DATED: 18.01.09

FEED: AM

Mitsu. Ad can't be shown before 9pm Watershed

Mitsubishi’s latest television advert for its Lancer cannot be shown before the 9pm watershed due to its “light-hearted innuendo”.
The advert didn’t clear pre-tranmission examination by Clearcast to be played at all times of the day after it deemed the content to be inappropriate for younger viewers.
The campaign features a conversation between a young boy and his Dad as they take a drive in the Lancer.
The boy asks: “Where did I come from?” The rest of the advert focuses on the father’s description of the birds and the bees to his son from outside the car, but as they journey home progresses, each explanation inside the car is mirrored by events outside.

Lance Bradley, Mitsubishi’s director of sales and marketing, said: “Clearcast thought that the light-hearted innuendo throughout the ad could be seen as inappropriate – especially for younger viewers.
“We are happy to have the TV ad shown after the 9pm watershed and will also be making the ad available through our website too.”

DATED: 18.01.09

FEED: AM

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