F&I Management & Training

Automotive charity BEN has appointed Nigel Williams as head of national development.
Williams joins BEN after 30 years in motor finance and most recently worked for nine years at Black Horse Motor Finance.

He said: “I am really looking forward to the different challenges that working for BEN brings and of course I’ll be able to remain close to the automotive sector.
“There is a real opportunity to extend the reach of BEN’s fundraising work beyond the traditional channels and I’d like to develop new and innovative ways in which we can approach fundraising and support in general.”

DATED: 21.03.09

FEED: AM

The number of new cars produced in the UK declined a record 59% annually in February as the motor industry continues to suffer. The Society of Motor Manufacturers and Traders (SMMT) said car production totalled just 59,777 last month. Car firms in the UK and elsewhere have cut both jobs and production as the recession has hit car sales. The carmakers have been lobbying the government for help for their finance arms that provide loans to buy cars. "The large fall in February's vehicle production is a direct result of weak demand," said SMMT chief executive Paul Everitt. It was the largest drop in a single month, according to SMMT records dating back to 1970, and the fifth straight month of decline. Government aid Business Secretary Lord Mandelson told the BBC he had been "encouraging" car manufacturers to apply for European loans. "We're going to make sure that where there are firms that are viable going concerns - and in the vast majority of cases they are - that they do have a future," he said. Lord Mandelson did not address whether the government would introduce a scrapping scheme, which involves paying drivers of high polluting older cars to switch to new models. He had said earlier this they were "looking at" the possibility of such a scheme, but no decision had been made yet on this idea.

DATED: 21.03.09

FEED: AW

Lord Mandelson has toured the Nissan car plant during a visit to the north east of England Friday 20th March. The Business Secretary discussed the future of the motor industry with bosses at the factory, which announced in January it was axing 1,200 jobs. He saw a concept version of its newest model, the Qazana, due to go into production next year. The former Hartlepool MP also visited a printable electronics research centre at Sedgefield's hi-tech NETPark. In addition he went to Smith Electric, in Washington, which produces electric vans and trucks. The firm is collaborating with Ford on a battery-electric version of a Transit van. Survive and thrive Lord Mandelson described car manufacturers and their suppliers as the cornerstone of Britain's manufacturing. "It's very important to me and to the economy as a whole that they survive," he said. "And they will survive and they will thrive in the future as long as they make the right decisions now. "These are a combination of cutting back in response to their former over-production, and now the extreme loss of demand, but also making the right decisions to invest in future markets. "That's what I will be discussing with Nissan".

DATED: 21.03.09

FEED: AW

BMW underscored the troubles of the luxury car segment when it scrapped its sales targets for the next few years. Chief executive Norbert Reithofer said the carmaker would miss the 2012 sales target of 1.8 million cars by more than 100,000. The company says it is also unlikely to meet its 2010 target of 1.6m sales. In the past year, BMW's sales have dropped 4.3% to 1.44m units.

DATED: 21.03.09

FEED: AW

Inchcape yesterday reported a pre-tax profit before exceptional items of £190.7m from its trading in 2008. That compared with £235.1m in 2007. Operating margin has also declined to 3.8% from 4.4% in 2007.

Net debt was reduced from £540m in November 2008 to £408m at the year-end.
Andre Lacroix, chief executive, said: "Recent market conditions have been unprecedented and extremely challenging, affecting the entire car industry on a global basis.
"We have responded swiftly by reducing our cost base, right sizing the business for the current environment and deleveraging the group."
The London-based international motor retailer has also announced plans to raise £232m through a new shares issue.

The cash would be used to reduce gearing, decrease finance charges and delay its refinancing requirement until 2012.
Lacriox said the group is well placed to gain market share during the recession.
March order levels at its UK operations were in line with the board's expectations, he added.
"While we believe trading conditions will remain extremely challenging throughout 2009, we are confident that the actions we have taken put us in a strong position to deliver a solid performance this year. Looking further ahead, Inchcape is positioned to take advantage of growth opportunities as markets recover.”

DATED: 20.03.09

FEED: AM

IM Group has merged the Subaru, Isuzu and Daihatsu brands under a single management structure, with Paul Tunnicliffe at the helm.
Lawrence Good, previsously managing director of Subaru and Isuzu UK, has left the business to head up IM Group's only owned dealership Showells in Lye Stourbridge, West Midlands. He will take up the position from April 1.
Tunnicliffe said: “In this uncertain business climate, it is vitally important for the sake of our manufacturers, dealers and staff that we take every opportunity to review our spending levels and reduce costs. This new structure will unfortunately result in some redundancies but at the same time provide us with an opportunity to streamline our operations.


“Although we face tough times ahead, this new structure, and the savings it brings, gives us the best possible opportunity to maximise the potential of all our brands, to the advantage of us all. In particular Subaru’s ongoing product development featuring the new Boxer Diesel, represents a massive source of incremental volume. I am also very keen to continue working closely with the Subaru dealers on how best to exploit it.”
Sam Burton remains as sales director for Subaru and Paul Hegarty becomes operations director for Subaru, Isuzu and Daihatsu.

DATED: 20.03.09

FEED: AM

Plans to give drivers £2,000 to trade in their old car for a new one will help to prop up foreign car plants, but do very little to protect British jobs, according to Professor Garel Rhys, of Cardiff University Business School. He has calculated that only 4% of the cars bought under any newly troduced 'scrappage' scheme would be made in Britain. Business Secretary Lord Mandelson is reported to be in advanced talks on proposals to spend up to £500 million on launching a 'scrappage' scheme that could see owners of cars at least nine years old being paid £2,000 to scrap them in favour of a new or nearly-new model. Professor Rhys says that such a move would ignore a unique feature of the British car industry: 78% of cars made in Britain are exported and 86% of cars bought in Britain are imported. He also says that the potential benefit of a 'scrappage' scheme to the British car industry was eroded further by the absence of small cheap models made here. He said: "A person who has been driving a nine-year-old car is not going to be able to afford a Jaguar, a Land Rover, or even a Toyota Avensis. We only make two cars that they are likely to buy: the Nissan Micra and the Mini, and these account for 4% of the British market. A scrappage scheme would result in the British taxpayer subsidising vehicle factories in other countries." British car dealers would benefit from the scheme, Professor Rhys said, but were likely to take advantage of the grants to reduce the discounts they were currently offering."The scheme is almost certain to push up the average retail cost of cars," he said. "If people try to say it's got anything to do with rescuing the British motor industry they either don't know what they are talking about or they are being disingenuous".

DATED: 20.03.09

FEED: AW

The 2010 British International motor show has been cancelled as the motor industry cuts spending. Carmakers cannot commit to the event at a time when they face "unprecedented challenges", said Paul Everitt, chief executive of the industry body SMMT. Car sales, and thus carmakers' profits, have plunged in recent months as consumers have struggled to get loans to buy cars. But the London show was struggling even before the credit crunch. For years, the show was held in Birmingham, though it moved to London in 2006 after several carmakers decided not to attend the show there and as visitor numbers tumbled. The 2006 show was well-supported by the industry, though by 2008 some carmakers had decided to stay away from the biennial show in spite of its growing popularity with consumers. Not the end The Society of Motor Manufacturers and Traders (SMMT) said the decision to cancel the show had been a "difficult one". "The global credit crunch has placed the automotive sector under unique pressure and has created a level of uncertainty that deters manufacturers from committing to large-scale, international events," said SMMT chief executive Paul Everitt. The show's organisers stressed the cancellation would not be permanent. "Given the great strides that the Motor Show has taken since its return to London, we fully endorse the decision to postpone [it] until market conditions will again permit us to deliver a world class event that truly showcases the UK industry," said Rob Mackenzie from International Motor Industry Events. When the show returns it may not be in "its current form", the SMMT indicated. Manufacturers were, however, committed to holding an event to showcase the UK car industry, SMMT spokesperson Nikki Rooke told the BBC. Global challenge The British motor show is not the only one to feel the pinch as carmakers reduce their marketing budgets during the recession. In January, the important Detroit auto show saw several carmakers stay away, with others cutting back spending on lavish displays and parties. The Tokyo show has also been warned that some automotive groups might stay away and there have already been some cancellations by carmakers ahead of the Frankfurt show in September. Yet the British show's problems are different from those faced by some of the major industry shows. The London show is widely seen as a consumer show and as such it will be the first to be deserted by carmakers traditionally more eager to display their products at shows that are described as industry fairs, such as Detroit, Geneva, Frankfurt and Paris. Consequently, world premieres and important concept vehicles have been relatively few and far between at British shows in recent years, a factor that in turn has hit visitor numbers.

DATED: 20.03.09

FEED: AW

GM boss Rick Wagoner has said the firm is willing to take "a less than 100%" stake in its Opel offshoot, in order to get German aid to save the subsidiary. Germany's economy minister is in the US to discuss a government bail-out of European subsidiary Opel. But Berlin wants to be sure no state support would find its way back to Detroit and be used to bail out GM. "We're open to a different structure in Europe," said Wagoner. "We need more cost savings." Wagoner met with the German Economy Minister Karl-Theodor zu Guttenberg on Monday night in Washington. Guttenberg said it was essential for GM to find a private investor. Germany's economy minister was meeting the US treasury secretary on Tuesday to discuss a government bail-out of General Motors' subsidiary Opel. Karl-Theodor zu Guttenberg will discuss with Timothy Geithner GM Europe's 3.3bn euros (£3.1bn; $4.3bn) request for aid. GM has already received $13.4bn from the US government, and has requested another $16.6bn, but this money will not go to its European operations. There are concerns that without state aid, GM Europe could go bust. Detailed proposals Mr Guttenberg met GM officials on Monday night. He was seeking assurances that any monies contributed by the German government would not be used to prop up Opel's US parent. Instead, he wants to ensure that any state funding will be used to secure Opel's long term future. Any decision about a bail-out will depend on the detailed proposals for its European operations being put together by GM. Germany has already demonstrated its willingness to help its ailing car industry by introducing a 2,500 euros cash incentive for car owners who trade in old cars. The UK government is also waiting to see GM Europe's proposals before it makes any decision about contributing to a bail-out of GM's UK-based Vauxhall subsidiary. "We need to see what the plans are before making any decision," said a spokesperson for the Department of Business, Enterprise and Regulatory Reform. The proposals should be completed "in the short term" said a spokesperson for GM Europe.

DATED: 18.03.09

FEED: AW

IM Group has merged the Subaru, Isuzu and Daihatsu brands under a single management structure, with Paul Tunnicliffe at the helm.
Lawrence Good, previsously managing director of Subaru and Isuzu UK, has left the business to head up IM Group's only owned dealership Showells in Lye Stourbridge, West Midlands. He will take up the position from April 1.

Tunnicliffe said: “In this uncertain business climate, it is vitally important for the sake of our manufacturers, dealers and staff that we take every opportunity to review our spending levels and reduce costs. This new structure will unfortunately result in some redundancies but at the same time provide us with an opportunity to streamline our operations.

“Although we face tough times ahead, this new structure, and the savings it brings, gives us the best possible opportunity to maximise the potential of all our brands, to the advantage of us all. In particular Subaru’s ongoing product development featuring the new Boxer Diesel, represents a massive source of incremental volume. I am also very keen to continue working closely with the Subaru dealers on how best to exploit it.”
Sam Burton remains as sales director for Subaru and Paul Hegarty becomes operations director for Subaru, Isuzu and Daihatsu.

DATED: 18.03.09

FEED: AM

Infiniti will not launch in the UK with domestic dealer groups.Instead, Nissan’s premium sister brand has chosen two partners from the Middle East.The brand will launch in the UK in September to coincide with the opening of its first dealership. Construction of the new showroom, at Reading, is already under way as the first step in the development of a UK network.Talking to AM at the Geneva Motor Show, Infiniti Europe vice-president Jim Wright refused to reveal which companies would be establishing its UK network. However, he admitted that Infiniti had chosen two partners “for a long-term commitment”, both from the Gulf and which have been partners with Nissan there for 20 years. Both will recruit UK staff.It appears UK dealers were not prepared to commit to Infiniti’s high franchise standards as few UK consumers are aware of the brand. It means Infiniti will not meet its stated goal of having 14 dealerships operational by August.“At the end of the day, it’s about people. From an investor’s point of view it’s about your attitude to risk,” said Wright.Although the recession has slightly delayed Infiniti’s UK launch – originally set for July – Wright was upbeat and insisted that it is an advantage for the brand to be an unknown in the market.

DATED: 18.03.09

FEED: AM

Infiniti will not launch in the UK with domestic dealer groups.Instead, Nissan’s premium sister brand has chosen two partners from the Middle East.The brand will launch in the UK in September to coincide with the opening of its first dealership. Construction of the new showroom, at Reading, is already under way as the first step in the development of a UK network.Talking to AM at the Geneva Motor Show, Infiniti Europe vice-president Jim Wright refused to reveal which companies would be establishing its UK network. However, he admitted that Infiniti had chosen two partners “for a long-term commitment”, both from the Gulf and which have been partners with Nissan there for 20 years. Both will recruit UK staff.It appears UK dealers were not prepared to commit to Infiniti’s high franchise standards as few UK consumers are aware of the brand. It means Infiniti will not meet its stated goal of having 14 dealerships operational by August.“At the end of the day, it’s about people. From an investor’s point of view it’s about your attitude to risk,” said Wright.Although the recession has slightly delayed Infiniti’s UK launch – originally set for July – Wright was upbeat and insisted that it is an advantage for the brand to be an unknown in the market.

Blue Bell BMW in Crewe car dealership will stage a film premiere on March 26 to celebrate the launch of a new model.

With the site set up as a drive-in movie theatre, workers at the Blue Bell Mini dealership are inviting customers to preview a locally made film, entitled The School That Roared.
The film, produced by the students of The Cooperative British Youth Film Academy, of which South Cheshire College is a part, has gained support from some big names in the industry, including Dancing On Ice star Todd Carty.
Dealer principal Barry Holt said: “We saw this as an opportunity to really support the talented individuals and offer a unique preview evening to highlight the success of the film.”

DATED: 18.03.09

FEED: AM

Business Secretary Lord Mandelson is preparing to launch a £2,000 'scrappage' scheme next month in a bid to kick-start UK car sales. It is understood that talks on the launch of a 'scrappage' scheme, which has been promoted by the motor industry, are at an advanced stage. It is possible that the launch of the initiative could be contained in the Government's Budget statement on April 22. Under the plan, owners of cars and vans more than nine years old would be entitled to a £2,000 discount on the purchase of any new or one-year-year-old car or van bought at a dealership. Owners of the old vehicles would have to deliver them to one of a number of car recycling plants and receive a certificate of 'scrapping'. They would then present this to a dealer and receive the Government-funded £2,000 discount.

DATED: 17.03.09

FEED: AW

General Motors is planning to seek third party investors for Vauxhall/Opel and is compiling a prospectus, which will be sent to 'possible interested parties'. GM Europe chief Carl-Peter Forster said: "Through our discussions with German officials, we have determined that finding an outside investor that has the majority of its investment backed by the Government is the most promising and innovative path to take. "This would mean the taxpayer has no immediate contribution to the restructuring - the Government would only provide guarantees for the majority of the investment made by a third party." This, he said, "would keep Government from having to take an equity stake in the company, a political precedent that many have been cautious about setting". National and regional governments are seen as the likeliest candidates to take stakes in exchange for the €3.3 billion the carmaker is seeking in state aid from European governments.

DATED: 17.03.09

FEED: AW

The Prime Minister will have the final say on the introduction of a scrappage scheme designed to lift the gloom in the car and van retail market.If the scheme, which would give customers a fixed, state-funded voucher, was to get Gordon Brown’s backing it would be introduced no sooner than June, following the Budget on April 22.The plans have been discussed at the Treasury with Exchequer Secretary Angela Eagle and the Retail Motor Industry Federation.Eagle is said to be “actively looking into the scheme”.RMIF director Sue Robinson said: “We got the impression the Treasury was taking the issue very seriously. But Eagle made it clear no decision had yet been made and when it was it would be Gordon Brown who would have the final sign-off.”The aim of such a plan would be to stimulate the demand for new and nearly-new cars and light vans. The RMIF and SMMT believe up to 250,000 cars and 30,000 vans could go through a scrappage scheme lasting no more than two years. It would apply to cars and light vans producing more than 150g/km CO2 and more than eight years old. The voucher worth £2,000 would be put towards a new or nearly-new vehicle.

The scheme would be sold to the public for its environmental benefits rather than a means to boost sales prospects for dealers who suffered a 27% fall in sales in the final months of 2008.Fears of poor new car sales in March – traditionally the best of the two plate-change months – would also provide additional focus.In a paper to the Treasury, RMIF chairman Paul Williams said: “The scheme would move the perception away from bail outs and would be seen as an initiative to help all the participants in the industry, including retailers, repairers, car manufacturers and component manufacturers. And at the same time it would remove older and more polluting vehicles from the road.”Scrappage should appeal to ministers since it would help the Government achieve its target of a 20% reduction of CO2 emissions by 2020 and a market recovery would see an increase in tax from car sales. The RMIF’s proposal is based on analysis of scrappage schemes in other countries, including Germany, France, Ireland and Spain. China has a purchase tax cut and incentive scheme.Robinson said the German scheme was the model for the federation’s plans. German motorists can receive €2,500 (£2,200) for swapping a car which is at least nine years old.
The European Commission has approved the UK Government’s £2.3 billion of funding announced by Lord Mandelson in January. Reasserting his backing for a scrappage scheme, SMMT chief executive Paul Everitt said: “The clearance of state aid is an important step in sustaining the UK motor industry, but the need for short-term measures to kick-start demand remains critical.”

DATED: 17.03.09

FEED: AM

Ssangyong will be showing an almost production-ready example of its new C200 crossover SUV at the Seoul Motor Show in South Korea on April 2.
The company says that the C200 unveiled at the show will closely resemble the production version scheduled to be launched later this year.
The C200 concept was first unveiled at the Paris show last October and is the first new model in the broadening of the SsangYong range. It is similar in size to a Toyota Rav4, Honda CRV and a Nissan Qashqai and with a 2,640mm wheelbase, is slightly longer than a Volkswagen Tiguan.
The C200 will feature a new diesel engine which has been designed to have low noise levels and reduced vibration. It produces 175bhp and complies with Euro V exhaust emissions requirements. Manual and automatic transmissions are likely to be available in the UK, with the show car having a six-speed auto.Work has already started on the production line for the new car, ahead of schedule.

Diesel hybrid Kyron
The diesel hybrid Kyron has a direct injection diesel engine, with a high-voltage battery supplying electric power to the electronic motor.
Last year SsangYong said tests had shown improvements in fuel efficiency of around 25% in comparison to existing vehicles of the same class. In terms of emissions, there was a reduction of approximately 10% in nitrogen oxide and 15% in particulates.
The company also said the completion of the development of a diesel hybrid car will allow for the development of a diesel hybrid technology that ensures a fuel efficiency improvement of at least 30% and a reduction in exhaust emissions of at least 50%.

DATED: 17.03.09

FEED: AM

Few car drivers regularly check tyre pressures despite the safety implications and negative impact on fuel economy of driving with under-inflated tyres. Now a new method of tyre inflation used by the American NASCAR race teams could provide the answer – and provide retailers with a new profit stream and an important way to retain service customers.Filling tyres with pure nitrogen instead of normal air – which is mostly a combination of oxygen and nitrogen – means better fuel economy, extends tyre life, is safer and more reliable, and improves handling, according to equipment suppliers.Nitrogen tyre filling machines are widely on sale in America and are used by around 18,000 dealerships and service centres. Two suppliers are now looking for distributors in the UK.Tiresafe, sold under the Castrol brand, and SafeRide sell a range of machines, from portable inflators priced $39.95 (£28.20) to truck generators at $9,600 (£6,771).According to Tiresafe, dealers charge customers between £40-70 for an initial purge and inflation with five tyres inflated in around six to seven minutes. Some dealers then decide to charge for future inflations, others offer free inflations for life as long as the customer returns their car to the dealership every six months. It has a major impact on customer retention.Nitrogen keeps tyres inflated for four to five times longer than air; it takes up to six months to lose 2psi compared to a month with air. In addition, it is non-explosive, which means no more truck tyre blow-outs. Instead the tyre slowly deflates.“Nitrogen tyre inflation is one of the best customer retention tools you can have in your operation,” said a SafeRide spokesman. The US Nitrogen Institute claims that customers can cut fuel bills by almost 6%, which for someone driving 15,000 miles a year in a 35mpg petrol car could mean a saving of £106 a year at today’s fuel prices. Added to this is the 31% increase in tyre life. Visit http://www.getnitrogen.org/ or http://www.saferidenitrogen.com/ for more information.

DATED: 17.03.09

FEED: AM

Few car drivers regularly check tyre pressures despite the safety implications and negative impact on fuel economy of driving with under-inflated tyres. Now a new method of tyre inflation used by the American NASCAR race teams could provide the answer – and provide retailers with a new profit stream and an important way to retain service customers.Filling tyres with pure nitrogen instead of normal air – which is mostly a combination of oxygen and nitrogen – means better fuel economy, extends tyre life, is safer and more reliable, and improves handling, according to equipment suppliers.Nitrogen tyre filling machines are widely on sale in America and are used by around 18,000 dealerships and service centres. Two suppliers are now looking for distributors in the UK.Tiresafe, sold under the Castrol brand, and SafeRide sell a range of machines, from portable inflators priced $39.95 (£28.20) to truck generators at $9,600 (£6,771).According to Tiresafe, dealers charge customers between £40-70 for an initial purge and inflation with five tyres inflated in around six to seven minutes. Some dealers then decide to charge for future inflations, others offer free inflations for life as long as the customer returns their car to the dealership every six months. It has a major impact on customer retention.Nitrogen keeps tyres inflated for four to five times longer than air; it takes up to six months to lose 2psi compared to a month with air. In addition, it is non-explosive, which means no more truck tyre blow-outs. Instead the tyre slowly deflates.“Nitrogen tyre inflation is one of the best customer retention tools you can have in your operation,” said a SafeRide spokesman. The US Nitrogen Institute claims that customers can cut fuel bills by almost 6%, which for someone driving 15,000 miles a year in a 35mpg petrol car could mean a saving of £106 a year at today’s fuel prices. Added to this is the 31% increase in tyre life. Visit www.getnitrogen.org or www.saferidenitrogen.com for more information.

Few car drivers regularly check tyre pressures despite the safety implications and negative impact on fuel economy of driving with under-inflated tyres. Now a new method of tyre inflation used by the American NASCAR race teams could provide the answer – and provide retailers with a new profit stream and an important way to retain service customers.Filling tyres with pure nitrogen instead of normal air – which is mostly a combination of oxygen and nitrogen – means better fuel economy, extends tyre life, is safer and more reliable, and improves handling, according to equipment suppliers.Nitrogen tyre filling machines are widely on sale in America and are used by around 18,000 dealerships and service centres. Two suppliers are now looking for distributors in the UK.Tiresafe, sold under the Castrol brand, and SafeRide sell a range of machines, from portable inflators priced $39.95 (£28.20) to truck generators at $9,600 (£6,771).According to Tiresafe, dealers charge customers between £40-70 for an initial purge and inflation with five tyres inflated in around six to seven minutes. Some dealers then decide to charge for future inflations, others offer free inflations for life as long as the customer returns their car to the dealership every six months. It has a major impact on customer retention.Nitrogen keeps tyres inflated for four to five times longer than air; it takes up to six months to lose 2psi compared to a month with air. In addition, it is non-explosive, which means no more truck tyre blow-outs. Instead the tyre slowly deflates.“Nitrogen tyre inflation is one of the best customer retention tools you can have in your operation,” said a SafeRide spokesman. The US Nitrogen Institute claims that customers can cut fuel bills by almost 6%, which for someone driving 15,000 miles a year in a 35mpg petrol car could mean a saving of £106 a year at today’s fuel prices. Added to this is the 31% increase in tyre life. Visit www.getnitrogen.org or www.saferidenitrogen.com for more information.

The RMIF has talked to a Treasury minister about its plans to form a car dealer bank in partnership with an existing financial institution. Paul Williams, RMIF chairman, has told Angela Eagle, exchequer secretary to the Treasury, that his members want to have some control over funds available to lend to car buyers.“We are feeling our way around Westminister with this idea,” Williams said. “It is a serious intention, and part of our determination to get some action moving for the retail motor industry.“We don’t have a particular bank in mind – our partner might be a high street or commercial bank. The RMIF has already had a response from some banks but I can give no details at this stage.”Williams said many members were expressing growing concerns about the inability of banks to extend credit.
As banking was not a core competence at the RMIF, he and other executives decided a partnership with a bank was the answer.Rob Foulston, RMIF chief executive, said although credit was available to dealers, an additional resource could only be of benefit to the industry. The idea has met with a frosty reaction from the Finance & Leasing Association director general, Stephen Sklaroff, who said: “The market is already served by a significant number of captive and independent motor finance houses.“Current difficulties in the wholesale funding markets are affecting many lenders of all kinds, and would affect any new players in a genuinely competitive market. “The FLA is therefore concentrating its efforts on ensuring, through active discussions with the Government, that existing motor lenders have access to appropriate support in order to continue to serve their dealer customers.”Graham Filmer, an automotive sector independent finance and insurance consultant, said: “A dealer bank would add gravitas to the RMIF and could enable its members to have more control over lines of credit.“But it would depend on how it was set up. For the RMIF to have control, it would probably need to put the finances of the bank on its books. If it had a minority stake, avoiding that, then its degree of control would be debatable.”

DATED: 17.03.09

FEED: AM

Nissan expects to lose 20% of its UK dealers by the end of 2010, though the current economic climate could accelerate the process. Nissan GB managing director Paul Willcox said 40% of the dealer network was not performing to expectation, and half of those outlets were likely to part company with the franchise. He said: "In August we had around 180 sites, of which 60% were doing a fantastic job, the rest were not and 20% were poor on every KPI score you can think of. "We had a clear, open policy to these dealers, improve or find another franchise. We hadn't terminated dealers for a long time, but we terminated four in December despite the downturn, on the basis of consistently poor performance." Mr Willcox had expected to remove the worst-performing 20% of dealers over two years but the current economic climate is likely to accelerate the process. "In September the world changed - and in a downturn if you are consistently poor on all your KPIs the one that will impact on you will be profitability. In a growing, buoyant market you can coast through on poor performance but you can't any more." Nissan will help strong performing dealers through the downturn, along with struggling outlets which have the potential to turn things around. "However partners who don't address their operational issues will find we won't support them if they run into problems," said Mr Willcox.

DATED: 16.03.09

FEED: AW

Motor industry faces surge in red-tape, confusion and extra costs thanks to ill-timed tax changes Motor retailers in the U.K. face a sudden and significant increase in red-tape next month - and the possibility of increased costs - unless proposed changes to the current practice of taxing company cars provided to employees in the industry is deferred, according to international accountancy firm Mazars. Demonstrator cars are commonly used as 'company cars' in the evening and at weekends by employees in the industry. At present, the taxable benefit on these vehicles is calculated based on a typically provided car. The reforms will require the industry to undertake a significant exercise at the beginning of each tax year to determine the taxable benefit on these vehicles grouped according to their list price and CO2 emissions. There are fears that this will lead to significant administration and added costs at a time when the industry is facing significant financial pressure. The proposals could also result in employees having to pay significantly more tax, and confusion over why the changes have occurred. Mazars is concerned that the changes have been poorly communicated and the short notice period is unreasonable given the substantial amount of work the shift will generate. The firm is seeking dialogue with the Treasury following discussions with a number of clients - and through them the representative industry bodies - which highlighted that a substantial proportion of the sector was unaware of the impending reforms. Alastair Kendrick, a director at the firm and a specialist in company car taxation comments: "The changes were only announced on HMRC's website on 30 October last year, without any formal notice sent to manufacturers and dealers. We've met with a number of motor manufacturers and importers, as well as industry bodies, and there is a genuine concern that there has been a lack of proper consultation and impact assessment." He continued: "The suggestion the changes are in response to supposed abuse of the system seems not be substantiated. This current period of unprecedented industrial upheaval will of course magnify the detrimental impact of the proposals."

DATED: 16.03.09

FEED: AW

A ‘three-for-one’ deal could be offered by dealers to stimulate new car sales.Broadspeed.com, which generates sales for dealers online, is trying to put the deal together for what is believed to be a seven-seat family vehicle.The offer involves a customer paying list price for one of the vehicles and he or she receives two identical models for free – providing they buy three service plans.Although the specification must be the same, the colours can be different.Cost of the service plans depends on mileage and engine size.Simon Empson, managing director of Broadspeed.com, said the deal could be put together only if the terms of the service plan were viable.Negotiations with dealers and manufacturers were ongoing and so Empson was unable to reveal full details of the offer, but it is believed it will involve a single brand.Empson said: “I can do it – it is whether I can promote it. We have dealers who want to do it, but we have to wait for the manufacturers to give it the green light. “The manufacturers will not agree to any marketing scheme which they view as distressing their product. However, there is significant surplus with manufacturers which has to be sold soon as all the storage facilities are full. Cars will have to be sold at half price or whatever can be achieved.”A spokesman for the Society of Motor Manufacturers and Traders said: “The offer shows just how hard the industry is working to stimulate demand.”

DATED: 16.03.09

FEED: AM

A crack down on car finance fraud last year saved the motor finance industry £123 million.

Finance companies’ efforts to combat attempted frauds at the application stage resulted in a 36% drop in the number of fraud cases reported in the final quarter of 2008, compared with the same period in 2007. Finance and Leasing Association members reported that 10,500 fraudulent motor finance agreements were caught by screening processes at the application stage in 2008.
These agreements, if approved, would have resulted in loans worth £123,423,000 being granted to fraudsters.
New statistics released today by the FLA show the reduction in fraud was achieved despite an increasing proportion of car buyers using dealer finance.
In the last 12 months, 53.1% of consumers buying a new car used dealer finance, compared with 47% in the previous 12 months.

DATED: 16.03.09

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GM Europe has created a website called Facts and Fiction to help address comments circulating in the media about the future of the business.
The website, http://gmeuropefactsandfiction.com, aims to provide facts to help dispel rumours.
GM said: “There is some fair and informed reporting about GM Europe, Opel & Vauxhall supported by facts.
“Unfortunately there is also misinformation, uninformed opinion, myths and urban legends that we read and hear. In fact, some really good fiction. But that's all it is. Fiction.
“GM Europe Facts & Fiction is not about our spin nor propaganda. It's not about our opinion nor about our perspective. For each popular myth we state the facts, plain and simple. And we stand behind these facts. We hope this will help to sort out fact from fiction. And when you read some fiction about us, please send them a link to this site and help correct misinformation.”

DATED: 16.03.09

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Citroen UK has appointed Charles Peugeot to head up its new commercial vehicles sales division.
He will head up a team of nine that includes the current commercial vehicle operations team, together with six field based business centre managers.
Peugeot will report directly to Xavier Duchemin, managing director of Citroën UK.
Duchemin said: “I am very pleased that Charles will be joining us to further strengthen our LCV team.
“Once again Citroën is forging ahead for the future, against a backdrop of very difficult trading conditions, in preparation for the time when the market becomes somewhat easier, while also helping us to maximise our potential right now.”

Peugeot has two masters degrees and three years experience with PSA Peugeot Citroën in both engineering and commercial roles for Citroën in the Spanish market.
He said: “This is a very exciting opportunity, and I am pleased to be working with an excellent and well established team here in the UK.
"With virtually brand new models across the entire Citroën LCV range, I am convinced that we have a very promising future in the UK market.”

DATED: 16.03.09

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Efforts to mirror a scheme which pays people to scrap their old vehicles and buy new ones has been condemned. Incentives in Germany encouraging consumers to scrap old cars and buy new ones, thus boosting sales by almost a quarter in February, has been hailed a huge economic success. Germany initiated a scheme whereby car owners are being paid 2.500 euro ($3,140; £2,230) to scrap any vehicle over nine years old and replace it with a new model. Total sales hit their highest February level for 10 years, although exports slumped by more than half during the month. Squandered resources The idea is to get people to buy more energy efficient vehicles, and also to save jobs in the motor industry. According to environmentalist George Monbiot however, it is an expensive way to cut carbon emissions "especially as there is a limited pool of money from the state". "Money should be used to the best possible effect if we are trying to reduce the impact on the environment," he says. "And that means as much carbon cut as we can for every pound that we spend." He did a rough calculation to work out what the cost would be and found it to be in excess of £500 (542 euros; $690) a ton for cutting carbon dioxide. "That is staggering - way more than a lot of other ways of reducing our carbon emissions," he says. He advocates investing in nuclear power or wind farms or, more to the point, investing in energy efficiency, which can actually save money at the same time as saving on carbon emissions. "Getting people to scrap their old cars and buy new ones is an incredibly ineffective and inefficient use of those pounds or euros or dollars," he says. Underestimated Mr Monbiot believes his calculation could be a wild underestimate of costs because there are several important factors he did not take into account. "There is one academic paper which suggests that scrapping schemes could actually raise carbon emissions rather than reducing them because of the carbon costs of manufacturing new cars," he points out. But if people continue buying cars rather than travelling by public transport, or walking or cycling, isn't it better to try to make that driving as undamaging as possible? "You can do that by means which don't require public expenditure," he says. "You can do it by means which actually raise public money. "One of the most effective is the banding of vehicle excise duty, when the more efficient your car is the less money you pay. That's the sort of incentive which doesn't cost the taxpayer a cent," he insists. Mixed reactions Supporters of the German plan include BMW board member Ian Robertson, who insists that rather than being an expensive scheme it would probably not cost governments anything at all. In a recent interview with the BBC he said "the 2,500 euros paid out are probably offset by the VAT [value added tax] on the cars that are being sold, which would not have been sold otherwise". He also reasons that it is keeping suppliers and dealers going, which is therefore having a good effect on the economy. The chief executive of the UK's Society of Motor Manufacturers and Traders is urging the government to follow Germany's lead. Paul Everitt says maintaining a steady rate of fleet renewal is vital to combat the recent fall in new car registrations. "We urge the government to implement the scrappage incentive scheme to take older cars off the road and boost the new car market," he says. Dieter Zetsche, chief executive of BMW's main rival Daimler, which owns Mercedes, disagrees however. "I am not a proponent of the scrapping scheme that is applied in Germany," he told the BBC last week, insisting that governments should act to make structural changes to the economy in an anti-cyclical way rather than try to change consumer behaviour. "Governments should focus on fixing the banking system, or offer loan guarantees, thus freeing up lending to car buyers and the corporate sector, rather than meddle directly with initiatives such as the German scrapping scheme," he said. Mr Monbiot would undoubtedly concur with Mr Zetsche. "Instead of paying people to scrap their cars, we might as well burn ten-pound notes in power stations," he proclaims.

DATED: 16.03.09

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Shares in French carmakers Renault and PSA Peugeot Citroen have risen sharply on market talk of a merger between the two vehicle manufacturers. The speculation came after PSA announced that it had appointed Barnaby Noble - a former vice president of mergers and acquisitions at Alstom - as director of strategy and business development Renault denied any merger possibility, while PSA declined to comment.

DATED: 16.03.09

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Auction used car prices have been significantly higher in the early months of 2009 compared to the end of 2008 and motor auctions have been breaking sales records. However without an upswing in new car sales this boom will come to an end' warns David Scarborough, Chairman of the RMI's Society of Motor Auctions (SMA), which represents the UK's motor auctions businesses. With used car demand up around 20 per cent in January alone, car dealers are searching for new stock. The SMA's membership has reported that all auctions were breaking sales records and had continued to do so until volumes dwindled leading up to March registration change. The change was dramatic, as at the end of 2008 values were low, and auctions were quiet. Scarborough commented: 'The auctions sector late in 2008 reflected the overall gloomy trend in the retail car sector with price reductions, little activity, and very few deals being struck. The start of 2009 looked healthier as most auctions had large volumes of cars already carried over from December. But we were about to experience a serious and exceptional demand that would outstrip supply immediately. 'Anyone visiting a motor auction in 2009 would be surprised that we are in any economic slowdown. 100 per cent conversions and much higher percentages of book value have been achieved for all major vendors during this period and for the first time for over a year everyone seems happy. It is my belief that this will continue dependent on vendor expectations following book value rises and the reduced effect this will have on their results.' 'While the pattern of an upswing in auctions activity in the early months is similar to previous years, the difference is the incredible scale of the increased activity and the subsequent prices achieved against the last third of 2008 . Scarborough concludes: 'With new car sales likely to continue at a much slower pace than previous years, the used car at auction will continue to be in big demand but for all our sakes we need volume to hit the market once more, bringing a little reality and overall prosperity back to all in the motor trade.'

DATED: 16.03.09

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BMW's net profits tumbled nearly 90% to 330m euros ($423m; £306m) last year, as the global economy weakened and reduced demand for cars. Earnings were hit by 2.4bn euros of exceptional costs linked to bad debts, personnel costs and provisions to cover risks on used car markets. Separately, the European Investment Bank made a 400m euros loan to BMW as part of a wider industry package. The EIB approved 3bn euros in loans to the European auto industry. The money will go to German, Italian, French and Swedish carmakers, the EIB said. Most of it will be aimed at improving fuel efficiency and cutting carbon emissions. The bank added that it expected to approve a further 2.8bn euros of loans to the industry in April and May, which would take its total lending to the sector to 6.3bn euros since December. BMW is not the only carmaker to struggle. VW reported on Thursday that sales fell 15% in January and February. And troubled carmaker Saab said that it planned to cut 750 jobs in Sweden. BMW gloom Shares in BMW fell 8% to 21.04 euros on the news of its profit fall. BMW did not provide an outlook for the year ahead. However, Norbert Reithofer, BMW's chief executive said in a statement: "The BMW Group has been able to make improvements at an operating level in the midst of extremely difficult economic times." He added: "Cost structures have been further optimised and thanks to rigorous management of free cash flow, the BMW group is in a very solid financial position." BMW is to cut its dividend by two-thirds to 0.30 euros. "We want to pay a dividend even in difficult economic times, demonstrating both the confidence we have in our operating strength and the interest in our shareholders," Mr Reithofer said. Volkswagen hit Announcing the fall in sales, Volkswagen said that 2009 sales and profits would not match the record levels of 2008. "The group's sales revenue in 2009 will be below that of the previous year due to the declining unit sales situation," VW said in a statement. "In such a situation, it will not be possible to reach the high level of earnings achieved in previous years," it added. Separately Saab, whose US parent General Motors wants to sell it, announced job cuts. "We announced this morning we would see to make 750 redundancies in our production facility in Trollhaettan," Saab spokesman Joe Oliver told the AFP news agency. "This is a necessary action to increase liquidity and the top priority for Saab at the moment is to reorganise efficiently in order to attract new investors."

DATED: 16.03.09

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US carmaker General Motors has said it will not need the $2bn (£1.45bn) of funding it had previously requested for March from the government. GM said the development reflected the acceleration of its efforts to cut costs. It had delayed spending planned for January and February, it added. GM has already received $13.4bn in aid, and has requested another $16.6bn. In December the company warned it could run out of cash in a matter of weeks if money were not made available. GM said the $2bn requested for March would not be needed "at this time". However, it did not indicate whether it would need the funds at a later date or if it planned to change its request for the $16.6bn asked for last month. "GM will remain in regular contact with the Presidential Task Force on the auto industry on the status of GM's restructuring actions, its liquidity position, timing of future funding requests, and other relevant topics of mutual concern," said Ray Young, GM vice president and chief financial officer.

DATED: 16.03.09

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Labels: Delayed Drafts

1car1, one of the largest independently owned car and van rental companies in the country, has gone into administration.
Staff at the Leeds-based company have been told of the situation.
Management has declined to comment thus far.
Seven hundred people are employed at the company

According to today's Sun newspaper, staff were sent a memo stating that: "We cannot guarantee salaries will be paid as normal at the end of this month.”

DATED: 16.03.09

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Business Secretary Lord Mandelson has stated that he wishes discussions with the Treasury and Bank of England regarding support for the car industry had gone quicker.
In an interview with the BBC Lord Mandelson said: “On giving financial liquidity to the car financing arms, I wish that discussions with the Treasury and the Bank of England – and it is the Bank of England that have pole position on this - had gone quicker than they have.
“But the discussions are none the less making progress and I hope that it will be possible for us to help those car finance arms because that goes hand in hand with our other efforts to help boost the car market and put a shot in the arm for a demand for cars.”
The Bank of England, which rarely responds publicly to criticism, issued a statement saying it was "puzzled" by remarks from Mandelson.
The statement from the central bank said: "It is not the role of the Bank to provide sector-specific support. That is clearly and properly a matter for the government."
Shadow Business Secretary Ken Clarke explained what he thought of Peter Mandelson's apparent criticism of the Treasury and Bank of England for not working fast enough to put the car financing bail out schemes in place.
Clarke spoke with the BBC: “It explains why the Government has not turned any of their plans to help the car industry into any reality.
“There’s scarcely a penny of assistance gone to the car industry and that is because the Treasury are not allowing Peter Mandelson to go ahead with help for the car finance companies.”
To watch the BBC's interview with Lord Mandelson click here. To watch the BBC's interview with Ken Clarke click here.

DATED: 16.03.09

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