F&I Management & Training

Labels: Delayed Drafts

General Motors' German unit Opel this afternoon agreed to a restructuring plan that aims to save as many jobs and factories as possible but needs 3.3 billion euros ($4.18 billion) in state aid, GM officials said.The idea is to split off Opel into a separate unit that would remain linked to its stricken U.S. parent while letting outside investors take a stake of more than a quarter, GM Europe President Carl-Peter Forster told a news conference. "There are still no decisions about plant closures or forced layoffs,"

DATED: 27.02.09

FEED: ANE

As unsold vehicles mount up across the globe, the carmaker Toyota has stashed some of its stock on an empty cargo ship.
The Japanese manufacturer has hired a ship in the Swedish port of Malmo to store thousands of unsold cars, reported EU Observer.
“It’s an emergency measure that we had to take due to storage space issues,” said a Toyotoa spokeswoman.
The decision to store 2,500 cars aboard a vessel was made last month when the Malmo port facility reached its limit of 12,000 cars.
“We hope to keep the time of this measure as short as possible, as we are continuously adapting our production level,” added Toyota.

DATED: 25.02.09

FEED: AM

Jardine Motors Group has completed a two-year programme to relocate its BMW and Mini dealerships in north London. The overhaul of the showrooms began in 2007 with the creation of new standalone aftersales sites for the two brands in Watford and Ruislip.The relocation of the Watford facility, which was moved from the combined sales and service centre in St Albans Road then allowed for the demolition of the entire site and the establishment of a new 32- car BMW showroom and seven-car Mini showroom which was completed in August. This project was followed by the relocation of the Stanmore BMW dealership in north London to a new BMW and Mini showroom at Stirling Corner on the A1 which features a 24-car BMW showroom and eight-car Mini showroom. This opened just before Christmas. This has been complemented by the opening of a new aftersales centre a mile away from the showroom at Borehamwood. Alun Jones, Jardine chief executive, said: “These developments represent a significant investment by Jardine in its BMW facilities in north London and will enable the group to significantly grow its BMW operations in this area and provide the highest levels of customer service for the future.”

DATED: 25.02.09

FEED: AM

Leading motor industry training bodies have got behind proposals to boost funding for training in the automotive sector.Business secretary Lord Mandelson announced the move as part of the government’s £2.5 billion package to support the industry.Mandelson said spending on skills training would be bumped up to £100 million from its current £65 million if there was demand.The extra £35 million from the Department of Innovation, Universities and Skills, which is primarily intended for car manufacturer training, will be offered via the Train to Gain scheme.Rob Foulston, Remit and RMIF chief executive, said extra funding was good news for the industry and Remit looked forward to working with government to further the cause of developing skills.He added: “Investment in training is vital if the sector is to move beyond the current economic situation.”The Learning and Skills Council (LSC), which oversees Train to Gain, has also announced new funding allocations weighted towards the sectors where it is most required: it considers one of these to be the automotive retail sector. Funding is allocated through a tendering process.The IMI, as Sector Skills Council, said it is working with training providers and employers to establish routes to obtain funding and is keen to establish further links to ensure the automotive sector can benefit from skills development that meets its needs. 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 only apply to England.

DATED: 25.02.09

FEED: AM

The government has told ailing van maker LDV that the taxpayer cannot be expected to bail out the firm, after it asked for £30m in loans. The firm has asked the government for a bridging loan because it is "literally running out of cash". LDV admitted that it has made a loss for four years. Sales have fallen after it suspended production in December. Russian parent firm Gaz said without funding thousands of jobs were at risk, including 900 in Birmingham. "The British taxpayer cannot be expected to pay for the company's losses," said a spokesman for Gordon Brown. The spokesperson confirmed that talks with the firm were "ongoing and regular" and being conducted by Business Minister Ian Pearson. Erik Eberhardson, who is the outgoing Gaz chairman and hopes to lead a management buy-out of the firm, says the situation is critical. "Unfortunately since the company [LDV] is not producing, it is not making enough revenue to cover its costs and the company is literally running out of cash right as we speak," he said. "It's 850 jobs in the plant, 1,200 jobs in the dealer network and about 4,000 jobs in the supplier industry which are at risk". He added: "We need £20-30m, depending on how we structure it," he added. Staff worries The joint leader of the Unite union, Tony Woodley, said the auto industry was on the brink. "We've had a crisis that now could turn into a catastrophe," he said. "That's why the government has got to do an awful lot more than it's even been trying to do." Staff at LDV, which has already sent a number of workers home in recent weeks, said the picture at the firm was bleak. John McLoughlin, said he had lost his job after working for the company for 33 years. "I don't know where to go from here," he said. "Luckily enough for me, today the wife has started a new job, so we've got some money coming in. It's not enough to pay the mortgage though." His comments came as it was announced that staff at Jaguar Land Rover are to be balloted over whether to accept a pay freeze and four-day week in order to avoid compulsory redundancies. Ultimate decision Gaz is controlled by oligarch Oleg Deripaska, a friend of Business Secretary Lord Mandelson. BBC business correspondent Martin Shankleman said the request for state help could cause Lord Mandelson political difficulties, after he was entertained by Mr Deripaska on his yacht over the summer. But the shadow chancellor, George Osborne, said the government should not intervene to bail-out the van-maker. Instead, ministers should establish a national loan guarantee scheme to help firms facing such difficulties, Mr Osbourne said. Whitehall sources have told the BBC that any talks with the van firm would be conducted by junior ministers and officials at the Department for Business, Enterprise and Regulatory Reform. But it is understood that ultimate responsibility over any scheme would still rest with Lord Mandelson. Prime Minister Gordon Brown said the government had adopted measures to help firms, whatever their size. He said steps included giving loans to small businesses, providing medium firms with working capital and larger firms with a facility from the Bank of England. The government has already announced measures to support the car industry including guarantees to unlock loans of up to £1.3bn from the European Investment Bank, as well as a further £1bn in UK government loans, to fund investment in greener vehicles. 'Sign of faith' The management buy-out of the firm aims to make it into the first big producer of electric vans in the UK. "We are almost ready to go, but we need the government to do its bit," added Mr Eberhardson. "I am confident they understand the potential to secure this exciting green technology in Britain - and the need to move very quickly." A company spokesman added: "Short-term bridging support for this management buy-out from the government will secure its future and the future of hundreds of jobs." Liam Byrne, Labour MP for Birmingham Hodge Hill, said: "LDV's plans for a management buy-out are an excellent sign of faith by the... leaders in the company. "For some weeks now I have been working closely with the company as they have shaped their ambitious plans for winning a big share of the 'green van' market." LDV was bought by the Gaz group two years ago. In November it announced 95 jobs were to be axed at its Washwood Heath factory in Birmingham.

DATED: 25.02.09

FEED: AW

Statement from Erik Eberhardson responding to BERR Responding to the statement from BERR rejecting LDV's request for support, Erik Eberhardson, leader of the management buyout, said: "We want to explore every avenue possible to save the company and the jobs. We still think that the company has a strong potential future as an electric van manufacturer, and the new ownership team, which is separate from GAZ, is prepared to invest its resources in that new venture if the government is able to give a short term loan. "We are ready to sit down and talk with the government at any stage about what commitments each party is able to put in. We hope the government will accept our invitation to do so."

DATED: 25.02.09

FEED: AM

Struggling van-maker LDV has asked the government for millions of pounds in loans to help secure its future. It wants access to bridging loans to tide it over while it presses ahead with plans for a management buy-out. The company, which employs 900 people in Birmingham, has seen sales plummet and suspended production in December. The management buy-out of the firm, currently owned by Russian company Gaz, aims to make it into the first big producer of electric vans in the UK. Gaz is controlled by oligarch Oleg Deripaska, a friend of Business Secretary Lord Mandelson. BBC business correspondent Martin Shankleman said the request for state help could cause Lord Mandelson political difficulties, after he was entertained by Mr Deripaska on his yacht over the summer. The company is warning the failure of its plans could cost 900 jobs directly and thousands more among suppliers. 'Sign of faith' Outgoing Gaz chairman Erik Eberhardson hopes to lead the management buy-out. "We are almost ready to go, but we need the government to do its bit," he said. "I am confident they understand the potential to secure this exciting green technology in Britain - and the need to move very quickly." A company spokesman added: "Short-term bridging support for this management buy-out from the government will secure its future and the future of hundreds of jobs." Liam Byrne, Labour MP for Birmingham Hodge Hill, said: "LDV's plans for a management buy-out are an excellent sign of faith by the... leaders in the company. "For some weeks now I have been working closely with the company as they have shaped their ambitious plans for winning a big share of the 'green van' market." LDV was bought by the Gaz group two years ago. In November it announced 95 jobs were to be axed at its Washwood Heath factory in Birmingham.

DATED: 25.02.09

FEED: AW

Car buyers could soon have a new source for car finance, as the Retail Motor Industry Federation (RMI), the motor sector trade body representing 8,000 businesses that sell new and used cars, is exploring the viability of joining an existing bank entity to establish a standalone motor industry finance facility. The proposed plan is for the RMI bank to provide car dealers with their own ring-fenced finance resource that consumers will be able to access, and will help to dispel misconceptions over the availability of consumer credit. The RMI will be taking its proposal to Government within the next few weeks. This facility when constituted will be available to RMI members only, ensuring its future financial risk credibility. RMI Chief Executive Rob Foulston commented: 'The current economic situation has made it clear that the retail motor sector would benefit from having its own source for consumer finance. While credit is available, this additional resource can only be of benefit to the industry.' Foulston adds: 'By having its own finance house, the retail motor sector will have control over its own finance, and be able to market this directly to consumers and businesses.'

DATED: 25.02.09

FEED: AW

Honda chief executive Takeo Fukui is to step down in June and be replaced by senior managing director Takanobu Ito. Like most Japanese carmakers it has seen sales slide in the wake of the global downturn and tightening credit. Japanese exporters, such as Honda, have also been hit by the strong yen. Rivals such as Toyota and Nissan have had to cut both production and jobs. The move follows a similar change at the top of Toyota, where Akio Toyoda replaced Katsuaki Watanabe. Honda saw its quarterly profit to December 2008 profit plummet by 90% Japan's second-biggest carmaker is now expecting an 80bn yen ($856m; £579m) profit for the financial year which ends on 31 March, as against an earlier prediction of 185bn yen profit.

DATED: 25.02.09

FEED: AW

Staff at Jaguar Land Rover are to vote on a one-year pay freeze and a four-day week, in return for no compulsory job losses for two years. The deal has been agreed between the firm and union leaders, and workers are due to decide within the coming weeks. Owned by India's Tata, the carmaker cut 450 jobs in January. Based in Gaydon, Warwickshire, it employs about 15,000 people in Castle Bromwich, Coventry and Solihull in the West Midlands and Halewood, Merseyside. 'Severe situation' The deal aims to help Jaguar Land Rover save up to £70m each year. It comes as Jaguar Land Rover continues to respond to an industry-wide fall in sales, as customers both in the UK and around the world cut back on buying new cars. Jaguar Land Rover has already held a number of temporary work suspensions, as have most of the other main carmakers. "We have had a number of constructive meetings with the unions to reach this agreement," said a company spokesman. "The unions recognise the severity of the situation and the need to take action to achieve further cost reductions while avoiding further redundancies." Last month the government announced measures to support the car industry including guarantees to unlock loans of up to £1.3bn from the European Investment Bank, as well as a further £1bn in UK government loans, to fund investment in greener vehicles.

DATED: 25.02.09

FEED: AW

The Unite union has defended its claim that a major, unidentified UK car plant could close within days unless it gets financial help from the government. Business Secretary Lord Mandelson warned against "feeding rumours" and said such comments could in themselves cause damage to the UK car industry. Culture Secretary Andy Burnham said the union claims were "irresponsible". But Unite insists more than 6,000 UK jobs are at risk and it would have been irresponsible not to have spoken up. 'Difficult time' Unite joint leader, Tony Woodley, warned on Friday that the unnamed plant, which he said employed more than 6,000 people directly or indirectly, needed urgent state aid to stay open. He said the government had to act to prevent what he described as "a catastrophe". The union says it would have been irresponsible to have named the company but also irresponsible not to have mentioned its plight. Unite sources have told the BBC they believe there is government money available for a lifeline but that ministers have not grasped the urgency of the situation. A source close to Mr Woodley said he had not taken the step of speaking up lightly. But the government says such comments are potentially very damaging and it is in talks with key manufacturers. Lord Mandelson warned the union that such "rumours" could "turn into a shockwave that destabilises a company or an industry and brings about the very outcome that we are seeking to avoid". Mr Burnham also criticised the union's comments, telling BBC Radio 4's Any Questions: "I think it's irresponsible really to put an unfounded rumour of that kind into the public domain. "It's quite clear to anybody with eyes and ears that the car industry is facing a very difficult time." But he added that it was "absolutely right" that ministers were being asked to do more for the car industry "given its importance to the British economy". Last month, Lord Mandelson announced a series of government measures aiming at supporting the car industry. These included guarantees to unlock loans of up to £1.3bn from the European Investment Bank, as well as a further £1bn in UK government loans, to fund investment in greener vehicles. The Department of Innovation, Universities and Skills also said it was prepared to increase funding to help train carmakers' employees from £65m to £100m. Mr Woodley's comments came as figures from the Society of Motor Manufacturers and Traders (SMMT) showed new car production in the UK fell dramatically in January compared with the previous year. A total of 61,404 new cars were produced last month, 58.7% lower than in January 2008, as plants closed for extended winter shutdowns. Car firms have been hit by falling demand amid the wider economic slowdown and the SMMT said the decline in vehicle output highlighted the need for more measures to help the industry. Several car firms have had to cut jobs and reduce workers' hours in response to slowing demand.

DATED: 25.02.09

FEED: AW

The Board of Cattles announces that in order to preserve liquidity in the business, it is temporarily suspending lending to new customers in Welcome Finance with immediate effect. Welcome Finance will continue to offer renewal products to existing customers.

The Board has appointed Deloitte, its internal auditor, to assist management in the review of Cattles' impairment provisions which was announced last week. James Corr, Cattles' Finance Director, who was due to retire at the end of February, will remain in his role until the current review is completed. Accordingly, Robert East's planned appointment to the Board, as Finance Director, has been deferred until further notice.

DATED: 24.02.09

FEED: IUK