F&I Management & Training

Once upon a time a man appeared in a village and announced to the villagers that he would buy monkeys for £10 each. The villagers, seeing that there were many monkeys around, went out to the forest and started catching them. The man bought thousands at £10 and, as supply started to diminish, the villagers stopped their effort.

He next announced that he would now buy monkeys at £20 each. This renewed the efforts of the villagers and they started catching monkeys again. Soon the supply diminished even further and people started going back to their farms.

The offer increased to £25 each and the supply of monkeys became so scarce it was an effort to even find a monkey, let alone catch it!

The man now announced that he would buy monkeys at £50 each! However, since he had to go away on some business, his assistant would buy on his behalf. In the absence of the man, the assistant told the villagers: "Look at all these monkeys in the big cage that the man has already collected. I will sell them to you at £35 and when the man returns from the city, you can
sell them to him for £50 each."

The villagers rounded up all their savings and bought all the monkeys for 700 billion pounds.

Strange as it may seem they never saw the man or his assistant again, only lots and lots of monkeys!

Now you have a better understanding of how the UK BANKS BAILOUT WILL WORK !

It doesn't get much clearer than this................

DATED: 31.01.09

FEED: PTL

in light of the present financial crisis, it's interesting to read
what Thomas Jefferson said in 1802:

'I believe that banking institutions are more dangerous to our liberties
than standing armies. If the American people ever allow private banks to
control the issue of their currency, first by inflation, then by
deflation, the banks and corporations that will grow up around the banks
will deprive the people of all property until their children wake-up
homeless on the continent their fathers conquered.'

Astute chappie or what?

DATED: 31.01.09

FEED: PTL

The management of Lex, the UK’s biggest car leasing firm, has approached private equity firms to fund a multi-billion pound buy-out of the business, reported Daily Telegraph.
The move would help streamline owner Lloyds Banking Group’s balance sheet.
The merger of Lloyds TSB and HBOS earlier this month to create Lloyds Banking group, brought together Lloyds’ Autolease arm with 129.000 vehicles and Lex, owned by HBOS with 251,000 vehicles.

DATED: 30.01.09

FEED: AM

Porsche has not been able to escape the global downturn with revenues down by 14.3% to €3 billion between August 2008 and January 2009.
Porsche is also expecting sales in the first half of the business year to have decreased by 27.3% to approximately 34,000 units.
The German manufacturer won’t publish full six-month earnings until March as it needs to incorporate fourth-quarter data from Volkswagen, which it has a controlling stake in.
The carmaker will suspend manufacturing for 19 days between now and August. Porsche already halted assembly lines at its main plant in Zuffenhausen, Germany, for eight days this month and extended employees’ Christmas break by three days.

DATED: 30.01.09

FEED: AM

Government help for the car industry will be capped at £250m per company, it has emerged since its bail-out offer.
The limit will be a heavy blow to Jaguar Land Rover which is believed to be seeking access to £1b in bridging loans, reported The Times.
Paul Everitt, SMMT chief executive, said the government provision would impose the upper limit of £250m and a lower limit of £5m.
The long-awaited package includes a scheme to unlock £1.3billion of loans from the EU for car manufacturers and major suppliers while UK government will fund a further £1billion of loans to invest in eco-friendly vehicles such as hybrids and plug-in cars.

DATED: 30.01.09

FEED: AW

Honda is to close its UK base for four months after Friday's shifts are over. This will affect just over 2,500 of its 3,700 employees, who will receive their full basic pay for the first two months, but around 60% thereafter. The shutdown at its Swindon base is thought to be one of the longest in Britain's recent industrial history. The move is in response to the downturn in the UK car market. On Friday the Japanese car company said global third quarter net profit had dropped 89%. Production staff, who install and upgrade machinery rather than make cars, will continue to work at Swindon during the shutdown. The last shift will end at 1820 tonight. Safeguarding jobs Honda has said there are no plans for redundancies and that it intends to "safeguard employment" for workers who want to stay at the company. Dave Hodgetts, senior director at the South Marston plant, said the company was not giving any guarantees but was "giving [its] best intentions". "We will be trying to protect their jobs - that's our priority for the whole period," he said. "After the four-month break, the plan is for all the staff to come back and their jobs will be secure," he added. Mr Hodgetts added the company would be ordering parts for next month, an indication of its commitment to start production in June. When staff return on 1 June, they will be making fewer vehicles as production, which was at around 240,000 vehicles a year, will resume at half that level. Among those vehicles will be the Honda Jazz, a small vehicle priced at between £10,000 and £12,000 which Honda says is proving popular with cash-strapped consumers. Honda, which employs 3,700 people in the UK and exports the Civic to 60 countries worldwide, has also cut 3,100 temporary jobs in Japan and reduced global production by 56,000 vehicles. 'Not utopia' Staff will be paid during the closure, but when the plant reopens, employees will have to work unpaid overtime equal to the amount they have been paid for over the four-month period, a spokesman for Honda said. Jim D'Avila, Unite the Union's officer for the South West, added that while it was good that workers were still being paid, if things got dramatically worse "companies like Honda will not be able to pay wages". "[The closure] has been a long time coming...but we have been trying to minimise the financial hardship and protect as many jobs as we can." Many workers will be cutting back, he said. "It's not utopia here...some will have to make financial adjustments to their budget. Some will get rid of cars, others will take a second mobile phone back or will take holidays in the UK instead of abroad." But some workers might be better off, he said. "[Some] will go off and get casual jobs and in some instances their income will be greater than if they had worked the four months." It is understood that more than 1,000 staff have signed up for a voluntary severance package and some have already left the business. Profits plunge Also on Friday, Honda said that its net profit for the three months to December plummeted 89%. The company made a net profit of 20.24bn yen ($226m; £158m), far lower than the 200bn yen it made in the same period the year before, prompting the company to cut its annual forecast by more than 50%. The group now expects net profit for the year to March 2009 to be 80bn yen, less than half its earlier forecast of 185bn yen. Bentley, Vauxhall and Jaguar Land Rover have all stopped production or cut the working week as demand for their cars fall.

DATED: 30.01.09

FEED: AW

Tim Abbott has been named the new Managing Director of BMW (UK) and will take up his new position on 1 February 2009. Tim is currently the company's Sales Director, a post he has held since August 2006. He replaces Klaus Kibsgaard who is moving to a new senior management post within the BMW Group Sales and Marketing division which will be announced soon. Tim has a broad experience of the motor industry spanning both manufacturer and retail environments. He first joined BMW in 1986 and held several positions in the regional and then national sales teams. In 1996 his career took him into the retail sector with Audi, establishing a successful group of five dealerships in the south-east of England which he sold in 2004 to United Auto Group (UAG). Following two years as a Divisional Managing Director for Sytner Group, he rejoined BMW (UK) as Sales Director. Speaking today, Ian Robertson, Member of the Board of Management of BMW AG responsible for sales and marketing, said, "Tim's breadth of experience across this industry has proved to be a great asset in his current position and will be even more valuable as he takes over the leadership of BMW (UK). He is a skilled business leader and his retail experience gives him exceptional insight into dealer network management. I congratulate him on his appointment." Tim commented, "I am clearly delighted with my new appointment. While the current business environment is tough, our exceptional brands and range of outstanding cars and motorcycles put us in a strong position. My role is to give clear leadership and direction to the company and the dealer network as we meet the challenges which lie ahead." Tim is 51 years-old, was educated at Loughborough University and is married with three children. He has a keen interest in motor sport and golf.

DATED: 30.01.09

FEED: AW

Volkswagen confirmed the dire state of the car industry when chief executive Martin Winterkorn estimated that global industry sales had dropped by a further quarter in January. He said that Europe's largest carmaker sold 15% fewer vehicles during the month, although global sales were down by 25%. Volkswagen estimates point to a further deepening of the largest crisis the car industry has seen for decades. In December worldwide sales fell by 18%.

DATED: 30.01.09

FEED: AW

CAR dealers are to find they soon will be unable to sell PPI packages at the same time as car finance.
A new rule change has introduced restrictions on the sale of Payment Protection Insurance, which could hit dealer sales process and profit streams.
The Competition Commission has introduced the changes, to address what it perceives as a lack of competition in the PPI market. It means that loan providers, and retailers who provide loans, will be restricted in how and when they sell PPI products.
The rules, which come into force in October 2010, mean car dealers cannot actively sell PPI within 7 days of selling a vehicle on finance.
However, a customer can approach the dealer about PPI after 24 hours.
Confused? Imagine how bewildered customers are going to be, said RMIF director Sue Robinson.
‘Putting the onus on customers to shop around for these products is actually more likely to lead to customers being uninsured rather than to them obtaining a better deal.
‘The Competition Commission’s approach is heavy handed. In the current climate, customers want reassurance that, if they buy a car on finance, they are able to meet the repayments if they are made redundant.’
She is far from impressed. ‘This decision could lead to customers inadvertently leaving themselves without this vital form of insurance, and prevents dealers from effectively doing their job when it comes to finance provision.’
The implications could spread even further too, she warned. ‘This could impede the recovery in the car market.’
This week’s change will not, we’re sure, be the last we’ll hear of the story…

DATED: 30.01.09

FEED: CDM

GETTING credit for buyers is a vital step the government must take to help the industry, ministers have been told.
At today’s meeting between industry leaders and the government, ministers were told tens of thousands of jobs are at risk if more help isn’t given to the car industry.
SMMT chief Paul Everitt welcomed yesterday’s £2.3bn aid package, which frees up loans for carmakers, but added problems extended to the lack of finance available to potential car buyers.
‘It was a serious and constructive meeting underlining the strategic importance of the UK motor industry,’ Everitt said after the meeting.
‘As an industry, we emphasised the lack of specific proposals to stimulate demand in the market and ease consumer credit, but have agreed to meet officials later this week to discuss technical issues holding up the ability of vehicle financing arms to get access to Bank of England funding.
‘We acknowledged the positive steps set out in yesterday’s statement and have agreed to work together to ensure that companies of all sizes are able to access the various government support schemes, including those announced yesterday.’
Business Secretary Lord Mandelson is reported to have said work to boost credit had begun.
In a statement after the meeting, Lord Mandelson said the package of loan guarantees had been welcomed by the manufacturers and they had discussed how carmakers and suppliers could access them.
‘There was also agreement at today’s meeting to take forward work to improve car company financing arms’ access to funding,’ he said.
He said his department had already opened exploratory discussions with banks and there would be more meetings on the issue with manufacturers this week.

DATED: 30.01.09

FEED: CDM

IMPORTED cars are going to rise in price due to the weakness of the pound, report financial experts.
This will mean new car prices will become more expensive – with some car manufacturers already responding.
Audi has just announced a 2 per cent rise across most of its car range, for example. There have also been price changes for Peugeot, Honda and various other makers.
The weakness of the Euro is a major factor in this. It means the UK pound ‘buys’ less abroad, driving up the cost of imports.
Furthermore, the BBC reports that Japanese cars will rise in price, due to the strength of the yen – electrical manufacturer Canon has already put up prices of electrical goods across Europe.
But prices will not rise across the board. Big sellers for Honda, Vauxhall, Nissan and Toyota – cars such as the Civic, Astra, Qashqai, Micra, Auris and Avensis – are all produced in UK factories.
This means they will be exempt from currency fluctuations. It is the other models about which dealers may be soon explaining price rises to customers. Yet more bad news for new car sales - and once again, something that is out of dealers’ hands…

DATED: 30.01.09

FEED: CDM

CAR dealers have a bad reputation – and, according to Which? Car magazine, it is entirely justified!
The shock findings are revealed in the consumer body’s latest issue, where it lays into car dealers with all guns firing.
‘Car dealers’ reputation for sharp practices could be justified,’ says Which?. This followed an undercover investigation that discovered lots of bad examples.
12 out of 26 dealers made ‘dubious or vague claims,’ for example. 4 of these could have broken new Consumer Protection Regulations.
Which? even suspected some dealers of using ‘bait and switch’ tactics. This is where a car is advertised despite car dealers knowing there is no stock. The aim it to upsell an alternative.
Examples of bad practice include:
• A Peugeot dealer saying he had a model that was advertised on its website. Later, the researcher was told the dealer didn’t have that model and was shown a different car.
• A Jeep dealer said an offer would finish at the end of the month despite the Jeep website saying it had months to run. The salesman claimed ‘there’s only about 10 left in the country’: Which? found no apparent shortage.
• A Vauxhall dealer advertised an Astra on a website. The mystery shopper was told to take a seat while the salesman ‘checked stocks’. The dealer walked into an office, came straight back out – in full view – and said that car was gone. ‘He then went into full sales mode, offering a used Astra, with several thousand miles on the clock, for the same price,’ reported the shopper.
Richard Headland, Editor, Which? Car, said: ‘The ghost of Arthur Daley’s alive and kicking, unfortunately. Dealers have had ample time to get used to the new rules, but too many still let car buyers down.
‘If dealers want to win the confidence of consumers, especially in these tough times, they need to play by the rules.’

DATED: 30.01.09

FEED: CDM

New restrictions on the sale of payment protection insurance (PPI) will mean that car dealers are unable to provide PPI at the same time as finance packages sold to their customers, warns the Retail Motor Industry Federation (RMIF). The Competition Commission has today (Thursday 29 January 2009) announced that in order to address a perceived lack of competition in the PPI market, they are to restrict the sale of PPI products by loan providers and retailers who provide loans. It will mean car dealers will be unable to actively sell PPI within seven days of selling a vehicle on finance, although a customer may approach a dealer after 24 hours to buy the product. The new rules will take effect in October 2010 with the information requirements implemented in April 2010. While the move is intended to promote competition, Sue Robinson, RMIF Director, believes the decision could leave customers without insurance: 'Putting the onus on customers to shop around for these products is actually more likely to lead to customers being uninsured rather than to them obtaining a better deal.' Robinson adds: 'The Competition Commission's approach is heavy handed in this case. In the current climate customers want reassurance that if they buy a car on finance they are able to meet the repayments if they are made redundant. This decision could lead to customers inadvertently leaving themselves without this vital form of insurance, and prevents dealers from effectively doing their job when it comes to finance provision. Further, this could impede the recovery in the car market.'

DATED: 30.01.09

FEED: AW

Production could be cut at one of the UK's major car manufacturers as sales slump in the global downturn. Toyota said it was considering introducing a shorter working week and completely suspending production in a bid to reduce costs. The firm, which employs 3,900 in Derbyshire and 600 in Flintshire, has already suspended night shifts and is planning two 14-day shutdowns. A spokesman said no changes had been confirmed and discussions were ongoing. Toyota spokesman Steve Carter added any cuts would affect both sites but were necessary to try to safeguard jobs. Mr Carter said: "Our employees recognise further action is needed to maintain the employment levels at the factory. "But redundancies are not included in the measures which have been put forward by the company." Last week the firm denied rumours of job cuts in the US and UK after experiencing a 4% drop in global sales. It is expected to declare its first-ever loss, which is likely to to be over £1bn, at the end of the financial year. Factories in Japan have also been temporarily closed in an effort to reduce the stock of unsold vehicles. 'Doom and gloom' Last month, the company announced it had put on hold is planned £88m investment in a new Auris 1.3 litre NR engine at its engine plant in Flintshire. Production had been due to start later this year. Alyn and Deeside MP Mark Tami said he had been assured that workers' jobs were safe. He said: "Toyota has the finest reputation for quality engineering and there is no doubt that once the economy has recovered it will be at the forefront of new technologies. "Right now the company is discussing options with employees, but redundancies are not on the agenda." Martin Fry, an employee representative at Deeside plant, said workers had been told the company was seeking to reduce its wage bill by between 10 and 20%, which could mean workers being put on a four or a four-and-a-half day week. He said Toyota was open to suggestions because it was trying to avoid lay offs but on current production levels the firm had 1,200 "surplus" employees between Deeside and the Burnaston assembly plant. Residents in nearby Queensferry were worried about the impact on the Flintshire area. Grocer Barry Whittle said "Quite a lot of people come off the industrial estate into Queensferry because there's a lot of food places here so it affects everybody. "There are jobs going at Corus in Shotton so this is another blow." Andrew Beck who runs a bathroom and tiles business said: "It's all doom and gloom at the moment. The two biggest employers in the area are Airbus and Toyota so this will have a big effect on Queensferry. It seems like a sign of the times. Another resident Jennie Hughes said: "It's the not knowing that's the worst, I know people who just don't know if they'll still have a job on Monday."

DATED: 30.01.09

FEED: AW

New restrictions on the sale of payment protection insurance (PPI) will mean that car dealers are unable to provide PPI at the same time as finance packages sold to their customers, warns the Retail Motor Industry Federation (RMIF).
The Competition Commission has today (Thursday 29 January 2009) announced that in order to address a perceived lack of competition in the PPI market, they are to restrict the sale of PPI products by loan providers and retailers who provide loans. It will mean car dealers will be unable to actively sell PPI within seven days of selling a vehicle on finance, although a customer may approach a dealer after 24 hours to buy the product.
The new rules will take effect in October 2010 with the information requirements implemented in April 2010.
While the move is intended to promote competition, Sue Robinson, RMIF Director, believes the decision could leave customers without insurance: ‘Putting the onus on customers to shop around for these products is actually more likely to lead to customers being uninsured rather than to them obtaining a better deal.'
Robinson adds: ‘The Competition Commission's approach is heavy handed in this case. In the current climate customers want reassurance that if they buy a car on finance they are able to meet the repayments if they are made redundant. This decision could lead to customers inadvertently leaving themselves without this vital form of insurance, and prevents dealers from effectively doing their job when it comes to finance provision. Further, this could impede the recovery in the car market.'

DATED: 30.01.09

FEED: HA

‘Lord Mandelson's announcement of increased funding for employee training in the automotive sector is good news for the industry, and as the largest apprentice training provider in the retail motor sector ReMIT looks forward to working with Government to further the cause of developing skills,' said Rob Foulston, Chief Executive of ReMIT, the motor industry apprentice training provider.
ReMIT is the training arm of the Retail Motor Industry Federation (RMIF). Rob Foulston was commenting on the statement on training made by Business Secretary Lord Mandelson as part of the car industry support measures he announced in the House of Lords.
The package included a £35m funding boost for new training, and coincided with the announcement of additional funding from the Higher Education Funding Council.
Foulston added: ‘Investment in training is vital if the sector is to move beyond the current economic situation.'

DATED: 30.01.09

FEED: HA

Camden Motor Group has entered administration as of today, 29.01.09

It is currently unclear which aspects of the business are involved in this process, and as
we hear more detail we will post.

DATED: 29.01.09

FEED: PTL

The Government should kick-start car sales by launching financial incentives to encourage owners to voluntarily scrap older cars and replace them with new models. The call came from the AA on the eve of a motor industry summit today (Wednesday, January 28) where Business Secretary Lord Mandelson will meet car industry representatives to discuss help for the industry. The AA has written to the Treasury saying the scheme would help reduce vehicle emissions and add a needed boost to new car sales. Simultaneously, it has been revealed that a scrappage scheme in Germany has sparked a rush on car dealers prompting speculation that 2009 new car sales could be higher than expected. Since January 14, car owners have been able to obtain Government certificates entitling them to ?2,500 if they scrap a car that is at least nine years old and buy a new or nearly-new model. The German car dealers' organisation, ZdK, says it expects 200,000 more cars to be sold as a result of the scheme. France has also seen an upturn in sales after the Government introduced a bonus of ?1,000 at the beginning of December for people scrapping a car at least 10 years old and replacing it with a new model with carbon dioxide emissions of less than 160 g/km. The French Government claims the scheme will lift sales by 100,000 units this year. In the UK, the AA says that the current Vehicle Excise Duty (VED) system gives an incentive for some motorists to hold on to pre-2001 cars particularly if they want a more powerful and bigger car. There are two flat rates of VED for pre-2001cars, one below 1,549cc and the other above. These vehicles tend to be the gross polluters and tend to be less roadworthy and less safe. In the proposed AA scheme a voucher against the purchase of a new car would be awarded. The motorist would take the old vehicle to the dealer and the dealer would offer the £500 discount plus any additional discount which would be increased to cover the scrap value. The AA estimates that there are approximately 4.26 million pre 1996 cars or 14% of the car parc. AA president Edmund King said: "A cash incentive to get the older gross polluter cars off the road to be replaced by cleaner, greener, safer models would be a boost to sales, the environment and road safety."

DATED: 29.01.09

FEED: AW

Consumer confidence in car-buying could receive a boost as a result of the Government's public show of support for the motor industry,' according to Sue Robinson, Director of the Retail Motor Industry Federation (RMIF), representing 8,000 retail motor sector businesses, commenting on the car industry support measures announced by Business Secretary Lord Mandelson yesterday (Tuesday 27 January 2009) in the House of Lords. The support package includes a scheme to unlock £1.3bn of loans from Europe for car manufacturers and major suppliers. He said the government would also guarantee up to £1bn of further loans. 'This investment in the industry should send the right message to consumers, endorsing the availability of credit and the excellent deals in the showroom,' added Robinson. Following his statement, Lord Mandelson made reference to a self financing scrappage scheme that would encourage motorists to dispose of older and more polluting vehicles, in favour of newer vehicles. Robinson observed: 'The proposition that the UK should adopt a self-financing scrappage policy was first proposed by RMIF Chairman Paul Williams on behalf of the RMIF at our meeting with Lord Mandelson in November 2008. The RMIF will shortly be presenting a paper to Government that puts the case for a self-financing Scrappage Scheme in the UK that mirrors those successfully adopted in other EU states. '

DATED: 29.01.09

FEED: AW

Commenting on today's meeting with the secretary of state for Business Enterprise and Regulatory Reform (BERR), SMMT chief executive Paul Everitt said: "It was a serious and constructive meeting underlining the strategic importance of the UK motor industry. We acknowledged the positive steps set out in yesterday's statement and have agreed to work together to ensure that companies of all sizes are able to access the various government support schemes, including those announced yesterday. "As an industry, we emphasised the lack of specific proposals to stimulate demand in the market and ease consumer credit, but have agreed to meet officials later this week to discuss technical issues holding up the ability of vehicle financing arms to get access to Bank of England funding. "In addition, we will have further discussions on measures to stimulate consumer demand, including reviewing action and planned action in other EU member states."

DATED: 29.01.09

FEED: AW

The government has been warned that tens of thousands of car workers' jobs could be lost unless it gives more help to the motor industry. Union leaders told ministers that although a £2.3bn loan guarantee package was a welcome start, more needed to be done. Tony Woodley, joint leader of Unite, said immediate financial support was needed to keep workers in jobs. Business Secretary Lord Mandelson hosted a summit in central London. Three-day week Car sales are falling amid a worsening economic climate, with unions warning of a jobs "catastrophe" if the measures do not have an impact soon. Several plants are on extended shutdowns, with firms including Honda, Nissan and Jaguar Land Rover among those affected. Engineering group GKN, which supplies parts to car makers including Land Rover and Ford, announced on Wednesday that it had cut 242 UK jobs since October and may have to shed more. Luxury sports car firm Aston Martin became the latest manufacturer has also cut production, with workers at its factory at Gaydon, Warwickshire, starting a three-day week. The government announced on Tuesday that it would offer car makers loans of up to £1.3bn from the European Investment Bank and guarantees of support of up to a further £1bn for lending. Mr Woodley said as he left the meeting, at the Department for Business, Enterprise and Regulatory Reform, that tens of thousands of jobs were now at risk because of the "collapse" in car sales. He pressed Lord Mandelson to offer immediate financial support and said more should be done to help access credit to encourage car sales. 'More to do' Mr Woodley said: "These are the big issues now. The government has listened intently to what we said. "We have made it clear that yesterday's announcement was a good start but it will not in itself be quick enough to offset potentially tens of thousands of job losses. We need an immediate cash injection. "The message is 'well done - but there is much more to do'." Business Minister Pat McFadden said: "We understand the importance of the car industry and we want to do everything we can to help. "We also have to remember the importance of the supply companies which have factories around the country." Tom Purves, chief executive of BMW, described the meeting as "very constructive", adding: "We are all working in the same direction. "We have seen an unprecedented drop in demand and the government understands that." Asked about the government package, he replied: "No-one can say whether it's enough or not enough. "The conversations we had about taking elements of the package on over the next two weeks has been very beneficial. "I agree we need to take action quickly - the government understands that."

DATED: 29.01.09

FEED: AW

Business Secretary Lord Mandelson has outlined a package of government support for the UK car industry potentially worth up to £2.3bn. The package includes a scheme to unlock £1.3bn of loans from Europe for car manufacturers and major suppliers. He said the government would also guarantee up to £1bn of further loans. But shadow business secretary Ken Clarke said the European loans were announced last year and called the whole package "pretty small beer". Outlining the measures in the House of Lords, Lord Mandelson said the automotive industry was vital to British manufacturing anad at the heart of many regional economies but was "in the frontline of the downturn". 'Low carbon future' He said the measures would boost the industry and lay "the foundations of its reinvention for a low carbon future". They include guarantees to unlock loans of up to £1.3bn from the European Investment Bank and another £1bn in loans to fund investment in green-friendly vehicles. But he said there would be "no blank cheque" and any schemes supported had to provide jobs, develop new technology and processes for the long term and provide value for money. Regional development agencies and the Technology Strategy Board are to be invited to bring forward new research and development programmes into cleaner engines, lighter cars and "plug-in hybrids". He also said spending on skills training for employees would be boosted to £100m from its current £65m, if there was demand from the industry. And trade and investment minister Mervyn Davies had been asked to draw up plans to improve access to additional funding for car companies' financing arms. The car industry had to change to succeed in the "new world" and had to be cleaner and greener, Lord Mandelson said. "This industry is not a lame duck and this is no bail out," he added. Responding in the Commons, shadow business secretary Ken Clarke said the package seemed to be "pretty small beer" compared with stories that had appeared over the weekend. "I'm slightly disappointed. I thought the secretary of state who I am shadowing would produce some new ideas, some dynamite," he said. "Is it the case that the secretary of state has not produced a bail-out because the Treasury has finally won an argument inside the government and explained to him that they can't afford the kind of support for the industry that was being trailed." 'Dithering' The government was "behind the curve" on helping the car industry which he said, as far back as October, ministers had said they stood "ready to help" while the Tories had suggested loan guarantees for the finance arms of car companies in November. "Here we are months later and during that time sales of cars in this country have dropped by half whilst the government dithers," he told MPs. And he said on the "key subject" of getting people who could afford it credit to buy cars - the government had only said it was "looking at steps" to address it. "For the rest of the statement I think the car industry will have listened in vain," he said. John Thurso, for the Liberal Democrats, said he had "grave concerns" about whether the package would work and said much had been announced already. "There are a number of worthy crumbs of comfort for the automotive industry but as it has been announced today, it is neither strategic nor comprehensive nor the panacea it was trailed to be," he said. Unite general secretary Derek Simpson told the BBC he was pleased the government had made a start in helping the car industry but questioned whether the loans would be enough. "In the case of the car industry I suspect much more needs to be done," he said. Jaguar Land Rover and the Society of Motor Manufacturers and Traders welcomed the announcement which they said recognised the strategic importance of the car industry to the British economy but said they would go through the detail with Lord Mandelson on Wednesday. And Stephen Sklaroff, of the Finance and Leasing Association - which represents the motor finance sector, said he looked forward "to early discussions with Mervyn Davies on how best to support all types of lenders to free up credit for new and used cars". Friends of the Earth welcomed the announcement but said more needed to be done to make sure the car industry was building cars that used less fuel - and providing incentives for people to buy them.

DATED: 29.01.09

FEED: AW

The Institute of the Motor Industry (IMI) the Sector Skills Council for the automotive retail sector has today (28 January) welcomed the news from the Department of Innovation, Universities and Skills (DIUS) that automotive employers will be able to access high quality skills support and increased funding via the Train to Gain scheme.
The measures set out in Lord Mandelson's statement to the House of Lords on a package of measures to help the automotive industry included the commitment that, if there is demand from the industry, funding to support new training will be increased.

The IMI is working with training providers and employers to establish a route to obtain funding and are keen to establish new links with employers to ensure the automotive sector can benefit from skills development that meets its requirements. This is a critically important programme specifically targeted to help all small and medium sized enterprises (SMEs) in the automotive sector, train their workforce, at a time when it is undoubtedly most needed.
The Learning and Skills Council (LSC) has announced new funding allocations weighted towards the sectors where it is required. The funding is allocated via a competitive tendering process and organisations who want to bid for this additional money can contact the IMI who, as the Sector Skills Council, will try and provide support as a named partner.
The LSC recently increased the flexibility of its eligibility criteria for access to Train to Gain funding. Employees who already hold a Level 2 qualification and are looking for another Level 2 or higher, are now eligible for funding, as are employees looking for part-qualifications or what the LSC calls "bite-sized chunks" of training. These new allowances apply to England only.

DATED: 29.01.09

FEED: HA

Organizers have cancelled this year's Barcelona auto show after major automakers pulled out of the event due to the economic crisis.ANFAC, the Spanish auto manufacturers association, decided Wednesday that dwindling carmaker interest made it impossible to go ahead with the show, which was scheduled to take place from May 9 to May 17.General Motors, Peugeot, Citroen and Nissan are among carmakers that decided not to exhibit at the show because of cost-cutting measures and the weak state of the Spanish market.

DATED: 29.01.09

FEED: ANE

MOTORISTS who are holding onto their cars for longer has led one company to label a new customer type. ‘MOT virgins’ are people who have never before kept a car long enough to put it through the MOT test.

Now, due to the recession, they are choosing to keep their current car instead of trading for a new one. This means the first MOT at 3 years is something they’ve never experienced before.
Kwik-Fit says there are 2 million of them out there, too!

It means YOUR aftersales department will see more of this type of customer. It is thus important to reassure them with the right information.
Kwik-Fit says you should explain the system fully, ensuring they’re fully up to speed with the processes and the legal side. Also, reassure them – two thirds of cars pass their MOTs first time.

David White, customer services director at Kwik-Fit, said: ‘With new car sales sliding, 2009 looks set to be the year that MOT virgins come of age.’ Can you capitalise on them popping their MOT cherry?

DATED: 28.01.09

FEED: CDM

Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, has told Lord Mandelson today the support package he announced for the UK car industry did not do enough to stimulate demand and ease consumer credit.
The SMMT acknowledged the positive steps set out in Mandelson’s speech like the £2.3 billion in guaranteed loans which was set out for carmakers and suppliers.
Everitt said: “It was a serious and constructive meeting underlining the strategic importance of the UK motor industry.
“We emphasised the lack of specific proposals to stimulate demand in the market and ease consumer credit, but have agreed to meet officials later this week to discuss technical issues holding up the ability of vehicle financing arms to get access to Bank of England funding.

“In addition, we will have further discussions on measures to stimulate consumer demand, including reviewing action and planned action in other EU member states.”
The Retail Motor Industry Federation also met with Mandelson today and tried to reinforce the size and strategic importance of the retail sector in relation to the whole motor industry.
Sue Robinson, trade associations director at the RMIF, said: "It's the dealers that face the consumer, and are the point of contact for credit and car buying. Overall, this investment in the industry should send the right message to consumers, endorsing the availability of credit and the excellent deals in the showroom."

DATED: 28.01.09

FEED: AM

There's been a muted reception to Lord Mandelson's £2.3bn aid package for Britain's battered car industry...
The Government is providing some roadside assistance to the UK’s broken-down motor industry with a £2.3bn support package, Business Secretary Lord Mandelson said on Tuesday. The money will mostly be used to guarantee loans made to manufacturers or big suppliers, in the hope that they might be able to start selling some cars again, and to fund research into eco-friendly vehicles. But do consumers really want to be spending their hard-earned savings on a new set of wheels at the moment? And is this just too little cash to make any difference?

The aid package – which we mustn’t call a bailout, or Mandy will get upset – is in two parts. The first involves state guarantees to unlock £1.3bn of European Investment Bank loans (the money put aside to lend to UK companies last year), intended to make financing easier. But it’s also putting aside £1bn in direct loans to help manufacturers build more environmentally-friendly cars. Mandelson insisted that the car industry was ‘not a lame duck’; but that it needed to reinvent itself ‘for a low-carbon future’ (he’s also making an extra £35m available for staff retraining).
The Government reckons the case for intervention is clear. We may not own many of our car-makers any more, but the industry directly or indirectly employs about 1m people in the UK. Mandelson says it contributes about £10bn in ‘added value’ to the economy – while it’s also disproportionately important to Britain’s manufacturing prowess and the health of certain regional economies. And it’s certainly had a rotten few months: both sales and production have halved in recent months as the deteriorating economic climate has hammered demand, putting thousands of jobs at risk.
However, some reckon that the Government is barking up the wrong tree by making it easier for us to pay for new cars – they argue that it’s trying to supply a non-existent demand, since most people just won’t want to shell out on big-ticket items at the moment. Nor has the green lobby been appeased by the funding for extra research into eco-friendly vehicles – a far greener option, they point out, would be to forget building cars and invest the money in public transport instead.
The other worry is that this package just won’t be enough. It’s certainly pretty small in comparison to the aid that other countries are giving their carmakers (or the huge sums that the Treasury has pumped into the financial system) - while those EIB loans could take months to materialise. Equally, most of the money will probably be hoovered up by big groups like Vauxhall and Jaguar Land Rover, which could leave the smaller part-makers out in the cold (GKN said today that it had cut 2,800 jobs since October, including about 250 in the UK).
Still, an industry with 1m employees accounts for a lot of voters – and probably a lot of unionised Labour voters at that. So there was never really any doubt that the Government would do something. But it remains to be seen whether this will prove to be anything more than a green-figleaved political sop...

DATED: 28.01.09

FEED: MgT

Business Secretary Lord Mandelson has outlined a package of support for the UK’s car industry which includes guaranteed loans of up to £2.3 billion for car manufacturers and suppliers.
Speaking to the House of Lords this afternoon he announced the two cornerstones to the package: £1.3 billion is from the European Investment Bank and grants of up to a £1bn to fund "worthwhile investments".
Applications from carmakers and suppliers for funds would be reviewed on a case by case basis and there was “no blank cheque on offer”.
Mandelson maintained that the UK car industry was "not a lame duck" and "the package is not a bailout".
He wants the funds to be used to fuel research and development of cleaner, low carbon vehicles, including electric and hybrid technology.
Mandelson also said spending on the Train to Gain skills training for automotive employees would be boosted to £100m from its current £65m, if there was demand from the industry.
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said: “This is an important announcement that recognises the strategic contribution of the motor industry and follows action in other EU member states, the US and Japan.
“The UK motor industry is productive and globally competitive with a long-term future at the heart of the low carbon agenda. We look forward to discussing the substance of the announcement at our meeting with Lord Mandelson tomorrow.”

Why is the automotive sector important to the UK economy?
• 27 car and CV manufacturers operating in the UK• 1.75m cars and commercial vehicles produced each year• £51bn turnover• £9.5 billion value added• Over 800,000 UK jobs• UK automotive manufacturing supplies over 100 markets worldwide offering some resilience to the UK issues• New cars emit less CO2 than older models – the average new car CO2 emissions have fallen 13% in the last decade.

DATED: 27.01.09

FEED: AM

Thomas Day Motors has had to call in administrators Baker Tilly at its single site in Fleet, Hampshire.
The business cited the measure as a result of the global credit crunch and the inability of banks to support small businesses.
A statement on the company’s website said: “May we take this opportunity of thanking our many customers and friends for their business over the last 40 years.”
Thomas Day Motors had a duel franchise site with MG and Renault.

DATED: 27.01.09

FEED: AM

Great time for small businesses to buy a used commercial vehicle says British Car Auctions According to leading vehicle auction company, British Car Auctions (BCA), average values for LCV's continued to fall in the final months of 2008 as the used vehicle sector as a whole remained depressed. And with prices now more affordable than ever, it could be an opportunity for small and medium businesses looking to source new vehicles for their organisations.

Although early results in 2009 suggest the commercial market may be bouncing back, there are still plenty of good value vehicles in the marketplace and opportunities abound for small businesses wanting to get the best value vehicle from their budget. Overall, BCA described 2008 as possibly 'the toughest in a decade' for LCV sales with LCV values falling by £1,096 (28.3%). In particular dealer part-exchange vans fell in value by nearly £600 over the whole year, from £2,322 to £1,728 - a significant 25.5% in this budget priced sector.

Nearly-new vans also struggled to maintain values in 2008, following the period of rapid growth in values the previous year when some manufacturers experienced supply issues on new stocks. Average values fell at BCA from £11,063 in January 2008 to £7,998 in December, a fall of £3,065 (27.7%). BCA's Duncan Ward, commented "The used LCV sector relies on a strong and confident economy for the small businesses and solus traders who are the key buyers of stock - either directly or via a retailer.

As the economic turmoil intensified in 2008, small business confidence ebbed away and this was reflected in van-buying activity. "It is quite possible that last year we saw the toughest market conditions in over a decade. With credit tight, there were plenty of buyers and lots of activity in the budget sector, but demand slowed around £5,000 - this seems to be the upper limit that many buyers can afford without resorting to finance. This has led to the unusual situation of the cheapest vans often being the most in demand. "However, early 2009 has kicked off exceptionally well with huge attendances at our light commercial sales around the network. Professional retail buyers are active and are currently busy replenishing their forecourt stock so small business buyers should act quickly to make sure they can still get some great deals."

DATED: 27.01.09

FEED: AW

UNSECURED personal loans have become significantly more expensive for borrowers.

Loan rates have jumped by up to 3.5 per cent in 18 months, reports comparison site moneyfacts.co.uk.

A car buyer would have been able to source a loan for an average rate of 8.6 per cent in June 2007. Today, the same average rate has leapt to 12.0 per cent – meaning a 3 year loan costs an extra £262 in interest.
The dearer the car, the bigger effect any interest rare rises have, too. A 5 year loan for £25k means, today, buyers are paying an extra £1,468 in interest.
Moneyfacts analyst Michelle Slade said: ‘Base rates may be at a historically low level, but anyone needing a personal loan has seen no benefit.
‘With stricter lending criteria, it is now much harder to be accepted for a loan. If you are, you will be paying a premium for the benefit.
‘The risk of customers defaulting on unsecured lending has increased. As a result, borrowers are paying a significantly increased rate than they were 18 months ago.’

It means the case for in-house finance is more compelling than in years. Manufacturers are still able to source competitive rates, which means car buyers are often better off by using dealer finance. The obvious benefit to dealers is an extra source of revenue from commission.
It is imperative dealers point out these benefits to customers, if they are to both make more money, and save money for their buyers.

DATED: 27.01.09

FEED: CD

RETAILERS and car dealers have been told supporting them is a top priority by their industry body, the IMI.

The organisation is thus working on a series of measures to help retailers deal with the recession.
These include helping apprentices who have been made redundant part way through their placements. This ensures they can continue and compete their qualifications.
It also offers advice to apprentice employers - the IMI can advise on means to save money without cutting jobs.

The IMI is also running a series of training days. The first is to help women working in the sector, and will be run at the following locations:

• 9 February – Milton Keynes
• 12 March – Reading

The second training event will help people looking to improve their career progression, or aid those who have been unemployed and want to return into the industry.
Two dates have been announced: 17 February and 24 February. Locations are to be confirmed, but the course content will include:

• Personal development planning
• Training needs
• Impression management
• CV writing
• Interview techniques

Lesley Woolley, head of professional development at the IMI, said: ‘These training sessions are specifically aimed at helping those in our sector improve their skills in the job market.
‘We understand that with rising consumer expectations, the current economic climate, and difficult trading conditions faced by the automotive industry, the need for competent, ethical individuals has never been more crucial.’
Interested? Send an e-mail to careers@motor.org.uk.

DATED: 27.01.09

FEED: CD

Institute of the Motor Industry (IMI) is supporting apprentices made redundant by advising them on how to continue qualifications and working with training providers to identify suitable work placements for appropriate apprentices.
For employers who might be considering making an apprentice redundant, IMI can also offer advice to avoid this situation from occurring.
According to IMI, there has been a reduction of apprentice activity in the motor industry, due to the current economic climate.

DATED: 26.01.09

FEED: AM

After just over a year in charge of Fiat UK, Andrew Humberstone is getting tough with dealers and threatening to withhold incentives for those who do not co-operate with a new business plan.
But he does so from a position of strength in that the business improvements of the last few months are the best in 12 years.
Humberstone told a dealer conference on Thursday that he could not do business with dealers who did not have a business plan.
“We are asking everyone to come up with a proposal for return on investment and to agree with us that it is attainable,” he said.
The managing director told AM that he wanted a proper ‘bottom up’ forecast: how many cars could be sold and through which channels. Having done that, dealers should be able to show what market share they could win in their areas.
“I am not prepared to support dealers who do not have a clear business strategy. I am prepared to withhold incentive payments if I do not get a business plan. I am not interested in being a dictator; I want to be a partner but I need all dealers to be talking to us,” he added.

Humberstone might sound as if he is risking the relationship with the whole network, but he believes that in the 14 months he has been in charge, visited all 150 partners, and built relationships with those who will be staying with Fiat, he has also delivered huge improvements on profit and method.
“When I arrived, 75% of our volume was registered in the last three days. Now registrations are flat across the whole month. I do not need people who put us over a barrel at the end of every month.”

DATED: 26.01.09

FEED: AM