Friday, March 27, 2009
Government insists aid package is right option
The Government has denied reports ministers are warming to the idea of a scrappage scheme to boost new car sales and is instead insisting the industry buy into its £2.3 billion aid package.
A national newspaper claimed the Department for Business Enterprise and Regulatory Reform (BERR) is backing a plan to offer motorists up to £2,500 in taxpayer funded handouts for trading in their old car for a new or nearly-new model.
A number of EU countries operate similar schemes: in Germany payments of €2,500 for trading in cars more than nine years old was credited with a 21% surge in new car sales last month.
A BERR spokeswoman said: “Reports of our backing the scheme didn’t come from us. Our official line is that we are considering it. There is no timetable for when we will reach our decision.”
A Treasury insider put its position on scrappage more strongly. “We don’t believe it’s the right thing to do for various reasons,” he told AM. He wouldn’t go into the reasons.
The Government appears determined to see industry take-up of its £2.3 billion Automotive Assistance Scheme announced by Lord Mandelson in January.
Exchequer Secretary Angela Eagle said: “The Government understands that, in theory, a car scrappage scheme could help promote the purchase of lower-emitting cars – but there are questions about how effective this would be in practice. “This is why Government has put forward measures focused on targeting the production and sale of low-emitting vehicles, by providing loan support to manufacturers, as well as a further £250 million for supporting ultra low-carbon vehicles.”
Business Minister Ian Pearson met manufacturer and supply chain representatives to explain what they need to do in order to apply to the Automotive Assistance Programme.
The meeting is understood to have included representatives from Jaguar Land Rover, Vauxhall, Ford, Honda, Bentley and Toyota as well as trade associations.
The Government’s £2.3 billion scheme to facilitate loans and loan guarantees has now had clearance from the European Commission and is “open for applications”, the BERR spokeswoman said.
It applies to the UK auto-motive sector and supply chain with a turnover of more than £25 million.
Speaking after the seminar, Pearson said: “We are determined that this scheme delivers support as quickly as possible. We have already received a number of expressions of interest, and we look forward to other companies coming forward shortly.
“The Automotive Assistance Programme is an opportunity for manufacturers and companies in the supply chain in the automotive sector to get ahead of the game and be leading global players in a low carbon economy.
“The Government has put the scheme in place and has now clearly set out the criteria against which applications will be judged. Now it’s up to companies to come forward with their bids.”
Retail Motor Industry Federation director Sue Robinson said: “It is imperative that the Government declares its intentions on the introduction of a vehicle scrappage scheme, which we believe will provide a boost to the sector. Other measures that could provide support for the industry also need to be considered.”
DATED: 27.03.09
FEED: AM
A national newspaper claimed the Department for Business Enterprise and Regulatory Reform (BERR) is backing a plan to offer motorists up to £2,500 in taxpayer funded handouts for trading in their old car for a new or nearly-new model.
A number of EU countries operate similar schemes: in Germany payments of €2,500 for trading in cars more than nine years old was credited with a 21% surge in new car sales last month.
A BERR spokeswoman said: “Reports of our backing the scheme didn’t come from us. Our official line is that we are considering it. There is no timetable for when we will reach our decision.”
A Treasury insider put its position on scrappage more strongly. “We don’t believe it’s the right thing to do for various reasons,” he told AM. He wouldn’t go into the reasons.
The Government appears determined to see industry take-up of its £2.3 billion Automotive Assistance Scheme announced by Lord Mandelson in January.
Exchequer Secretary Angela Eagle said: “The Government understands that, in theory, a car scrappage scheme could help promote the purchase of lower-emitting cars – but there are questions about how effective this would be in practice. “This is why Government has put forward measures focused on targeting the production and sale of low-emitting vehicles, by providing loan support to manufacturers, as well as a further £250 million for supporting ultra low-carbon vehicles.”
Business Minister Ian Pearson met manufacturer and supply chain representatives to explain what they need to do in order to apply to the Automotive Assistance Programme.
The meeting is understood to have included representatives from Jaguar Land Rover, Vauxhall, Ford, Honda, Bentley and Toyota as well as trade associations.
The Government’s £2.3 billion scheme to facilitate loans and loan guarantees has now had clearance from the European Commission and is “open for applications”, the BERR spokeswoman said.
It applies to the UK auto-motive sector and supply chain with a turnover of more than £25 million.
Speaking after the seminar, Pearson said: “We are determined that this scheme delivers support as quickly as possible. We have already received a number of expressions of interest, and we look forward to other companies coming forward shortly.
“The Automotive Assistance Programme is an opportunity for manufacturers and companies in the supply chain in the automotive sector to get ahead of the game and be leading global players in a low carbon economy.
“The Government has put the scheme in place and has now clearly set out the criteria against which applications will be judged. Now it’s up to companies to come forward with their bids.”
Retail Motor Industry Federation director Sue Robinson said: “It is imperative that the Government declares its intentions on the introduction of a vehicle scrappage scheme, which we believe will provide a boost to the sector. Other measures that could provide support for the industry also need to be considered.”
DATED: 27.03.09
FEED: AM
GM to pull out from certain European markets
General Motors is to pull its Cadillac brand from half of its European markets in order to focus on the UK, Russia and Switzerland following the collapse of its distributor Kroymans.
Automotive News Europe has quoted a GM source as saying: “We will take it down to less than a dozen markets.”
Cadillac is currently sold in 25 European markets.
DATED: 27.03.09
FEED: AM
Automotive News Europe has quoted a GM source as saying: “We will take it down to less than a dozen markets.”
Cadillac is currently sold in 25 European markets.
DATED: 27.03.09
FEED: AM
Royal solidarity with car workers
The Prince of Wales gave a royal seal of approval to struggling car giant Vauxhall during a visit to its Ellesmere Port plant yesterday (Thursday March 26). Prince Charles spoke to workers at the General Motors (GM) factory about the pressures on the UK motor industry. Production is 20% down at the plant, while the UK industry as a whole saw a 59% drop last month. But workers, who are accepting a drop in pay and hours, said the royal visit proved the site had a future. There have been no redundancies either at Ellesmere Port or at Vauxhall's other plant in Luton. The Ellesmere Port factory is to build the next generation Astra from September, with GM insisting its future is safe. Vauxhall assembly line worker Paul Misson, a shift manager from Chester, met Prince Charles during his tour. Mr Misson said: "He was quite interested in the new vehicle we are launching. "We have just won a green award which the Prince was really interested in." Ralf Besenbeck, from Mainz, Germany, who is working at Vauxhall in the UK on a project said the visit was "an honour for all of us". "I think if someone from the Royal family visits us, it shows we have a future." His co-worker Bob Oldfield added: "I think it was a good visit. This will make people sit-up and see we have a future." After touring the assembly line, the prince attended a private discussion on the impact of the economic downturn on businesses.
DATED: 27.03.09
FEED: AW
DATED: 27.03.09
FEED: AW
Renault shelves plans for UK Dacia launch
Renault UK has shelved plans to launch its high-value Dacia brand in the UK because of poor economic trading conditions. The firm had been aiming to make the Sandero, its budget-priced five-door hatchback model, available at more than half its UK dealerships by next year. But, the company now says distribution, sales and marketing costs makes Dacia 'financially inadvisable' in the current economic climate. "We are not saying the plan is dead in the water, but our position has been readjusted. Our UK sales have to be profitable," said a spokesman.
DATED: 27.03.09
FEED: AM
DATED: 27.03.09
FEED: AM
ICFM members star brightly in Fleet News Awards
Institute of Car Fleet Management members won three of the four awards available for individual fleet managers at the 2009 Fleet News Awards, the most high profile awards in the fleet sector. Gerard Finn of Avon Cosmetics, a Fellow (FICFM) of the Institute, was named 'Fleet Manager of the Year - 401-plus vehicles.' He joined the ICFM in April 1993 and holds both Certificate and Diploma-level qualifications. Marie Jarrold of British Car Auctions, a Member (MICFM) of the ICFM, was awarded the title of 'Fleet Manager of the Year - 101 - 400 vehicles.' She joined the Institute in September 1996 and holds a Certificate in Car Fleet Management. Marie is currently studying for the Diploma in Car Fleet Management. Alan Legge of the British Standards Institution, an Associate Member (AICFM), won the 'New Fleet Manager of the Year' Award. He joined the Institute in February 2008 and is currently on the 'Fast Track' Certificate Programme. Chairman of the ICFM, Roddy Graham commented: "We are delighted that three of our members have scooped prestigious awards at this year's Fleet News Awards. It demonstrates the value of acquiring professional fleet management qualifications and we congratulate each of them on their excellent achievement. Given the UK fleet industry is the most advanced and mature in the world, they can be justifiably proud." Incidentally, Phil Redman of IBM, winners of the top 'Fleet of the Year' Award, and highly commended in the 'Fleet Manager of the Year - 401-plus vehicles' category is facilitating the 'delivering the skills for success' workshop at the free ICFM training workshop on March 31.
DATED: 27.03.09
FEED: AW
DATED: 27.03.09
FEED: AW
Thursday, March 26, 2009
Renault shelves plans for UK Dacia launch
Renault UK has shelved plans to launch its high-value Dacia brand in the UK because of poor economic trading conditions.
The firm had been aiming to make the Sandero, its budget-priced five-door hatchback model, available at more than half its UK dealerships by next year.
But, speaking exclusively to AM, it now says distribution, sales and marketing costs make Dacia (AM-online search word: Dacia) ‘financially inadvisable’ in the current economic climate.
“We are not saying the plan is dead in the water, but our position has been readjusted. Our UK sales have to be profitable,” said a spokesman.
In a recent interview, managing director Roland Bouchara told AM that a two-year research exercise had identified a ‘huge opportunity’ for Dacia in the UK.
“We are about to make a new car accessible to people who have been used to buying secondhand. It’s exciting and I am a big believer in the Sandero,” he said.
Destined for emerging markets when it was launched six years ago, the sturdy but well equipped entry-level Dacia Logan surprised Renault by attracting first-time buyers across western Europe.
DATED: 26.03.09
FEED: AM
The firm had been aiming to make the Sandero, its budget-priced five-door hatchback model, available at more than half its UK dealerships by next year.
But, speaking exclusively to AM, it now says distribution, sales and marketing costs make Dacia (AM-online search word: Dacia) ‘financially inadvisable’ in the current economic climate.
“We are not saying the plan is dead in the water, but our position has been readjusted. Our UK sales have to be profitable,” said a spokesman.
In a recent interview, managing director Roland Bouchara told AM that a two-year research exercise had identified a ‘huge opportunity’ for Dacia in the UK.
“We are about to make a new car accessible to people who have been used to buying secondhand. It’s exciting and I am a big believer in the Sandero,” he said.
Destined for emerging markets when it was launched six years ago, the sturdy but well equipped entry-level Dacia Logan surprised Renault by attracting first-time buyers across western Europe.
DATED: 26.03.09
FEED: AM
Suzuki postpones UK launch of Kizashi
Britain’s economic meltdown has put a brake on Suzuki GB plans to win a share of the company car market.
The Japanese firm has postponed plans to launch the Kizashi, its first D-segment saloon model, in the corporate sector.
Due to be unveiled at the New York motor show next month, the car was set to go into UK showrooms at the end of this year or during the first quarter of 2010.
It is now unlikely to be imported for at least two more years.
“We have taken account of the economic situation and reached the conclusion that corporate business is getting more costly and increasingly difficult,” said dealer development general manager Dale Wyatt.
“The D-segment is shrinking and right now, getting established in the fleet market and changing the focus of a largely retail dealer network represents a lot of effort for potentially little return.
“I think the present climate makes it unwise for us to try to enter a segment that is new to us and also particularly aggressive,” Wyatt added.
He said the fact that V6 petrol engines would only be available on initial versions of the Kizashi – it means prelude in Japanese - also had a bearing on the decision to defer.
“Diesel is a key requirement in this sector and I’d rather we wait for the two-litre diesel option. That will also give us time to see how the car is accepted in other markets.
“When it does arrive, I think it has the potential to add around 5,000 units to our annual volume,” said Wyatt.
DATED: 26.03.09
FEED: AM
The Japanese firm has postponed plans to launch the Kizashi, its first D-segment saloon model, in the corporate sector.
Due to be unveiled at the New York motor show next month, the car was set to go into UK showrooms at the end of this year or during the first quarter of 2010.
It is now unlikely to be imported for at least two more years.
“We have taken account of the economic situation and reached the conclusion that corporate business is getting more costly and increasingly difficult,” said dealer development general manager Dale Wyatt.
“The D-segment is shrinking and right now, getting established in the fleet market and changing the focus of a largely retail dealer network represents a lot of effort for potentially little return.
“I think the present climate makes it unwise for us to try to enter a segment that is new to us and also particularly aggressive,” Wyatt added.
He said the fact that V6 petrol engines would only be available on initial versions of the Kizashi – it means prelude in Japanese - also had a bearing on the decision to defer.
“Diesel is a key requirement in this sector and I’d rather we wait for the two-litre diesel option. That will also give us time to see how the car is accepted in other markets.
“When it does arrive, I think it has the potential to add around 5,000 units to our annual volume,” said Wyatt.
DATED: 26.03.09
FEED: AM
Volkswagen CVs in sponsorship deal with C4
Volkswagen Commercial Vehicles is sponsoring a new Channel 4 season called Adventure on 4, which starts on April 9 with Around the World in 80 Trades.
The 12-month sponsorship package will include the tag line "Adventure on 4 in partnership with Volkswagen Commercial Vehicles", which will run before and after each programme and will be supported by sponsor-branded promotional trails.
Channel 4’s online video-on-demand service will also feature the sponsorship deal.
It will focus on Volkswagen’s range of vans - the Caddy, Transporter and Crafter – with the closing strapline, “A solid investment whatever your trade. Volkswagen Commercial Vehicles. Let’s Go To Work”.
Steve Reynolds, head of marketing for Volkswagen Commercial Vehicles, said: “This TV advertising is an important and visual part of our communications strategy for 2009.
“In conjunction with our radio campaign, featuring the distinctive voice of Ray Winstone, this will maximise awareness of the Volkswagen Commercial Vehicles brand.”
DATED: 26.03.09
FEED: AM
The 12-month sponsorship package will include the tag line "Adventure on 4 in partnership with Volkswagen Commercial Vehicles", which will run before and after each programme and will be supported by sponsor-branded promotional trails.
Channel 4’s online video-on-demand service will also feature the sponsorship deal.
It will focus on Volkswagen’s range of vans - the Caddy, Transporter and Crafter – with the closing strapline, “A solid investment whatever your trade. Volkswagen Commercial Vehicles. Let’s Go To Work”.
Steve Reynolds, head of marketing for Volkswagen Commercial Vehicles, said: “This TV advertising is an important and visual part of our communications strategy for 2009.
“In conjunction with our radio campaign, featuring the distinctive voice of Ray Winstone, this will maximise awareness of the Volkswagen Commercial Vehicles brand.”
DATED: 26.03.09
FEED: AM
Volkswagen CVs in sponsorship deal with C4
Volkswagen Commercial Vehicles is sponsoring a new Channel 4 season called Adventure on 4, which starts on April 9 with Around the World in 80 Trades.
The 12-month sponsorship package will include the tag line "Adventure on 4 in partnership with Volkswagen Commercial Vehicles", which will run before and after each programme and will be supported by sponsor-branded promotional trails.
Channel 4’s online video-on-demand service will also feature the sponsorship deal.
It will focus on Volkswagen’s range of vans - the Caddy, Transporter and Crafter – with the closing strapline, “A solid investment whatever your trade. Volkswagen Commercial Vehicles. Let’s Go To Work”.
Steve Reynolds, head of marketing for Volkswagen Commercial Vehicles, said: “This TV advertising is an important and visual part of our communications strategy for 2009.
“In conjunction with our radio campaign, featuring the distinctive voice of Ray Winstone, this will maximise awareness of the Volkswagen Commercial Vehicles brand.”
The 12-month sponsorship package will include the tag line "Adventure on 4 in partnership with Volkswagen Commercial Vehicles", which will run before and after each programme and will be supported by sponsor-branded promotional trails.
Channel 4’s online video-on-demand service will also feature the sponsorship deal.
It will focus on Volkswagen’s range of vans - the Caddy, Transporter and Crafter – with the closing strapline, “A solid investment whatever your trade. Volkswagen Commercial Vehicles. Let’s Go To Work”.
Steve Reynolds, head of marketing for Volkswagen Commercial Vehicles, said: “This TV advertising is an important and visual part of our communications strategy for 2009.
“In conjunction with our radio campaign, featuring the distinctive voice of Ray Winstone, this will maximise awareness of the Volkswagen Commercial Vehicles brand.”
Reports claim Chinese may buy Volvo
Ford has confirmed it is in talks with a number of parties regarding the sale of Volvo.
The carmaker did not say who although according to Swedish reports they are Chinese companies.
These include Chery Automobile, Dongfeng Motor Group and Chongqing Changan Automobile.
A Ford spokesman said it was talking in more detail to these interested parties about the future of Volvo.
Volvo made a loss of $736m (£504m)in the last three months of 2008, while Ford's overall loss for the whole year totalled $14.6bn (10bn).
DATED: 26.03.09
FEED: AM
The carmaker did not say who although according to Swedish reports they are Chinese companies.
These include Chery Automobile, Dongfeng Motor Group and Chongqing Changan Automobile.
A Ford spokesman said it was talking in more detail to these interested parties about the future of Volvo.
Volvo made a loss of $736m (£504m)in the last three months of 2008, while Ford's overall loss for the whole year totalled $14.6bn (10bn).
DATED: 26.03.09
FEED: AM
Sytner buys all three Nick Whale dealerships
Sytner Group has acquired a Ferrari/Maserati dealership at Bromsgrove, near Birmingham, and Porsche centres at Solihull and Leicester for an undisclosed sum.
The outlets were run by the loss-making Nick Whale Holdngs. Whale could not be contacted by AM.
Mario Vignali, a Sytner franchise director, is now based at the Bromsgrove Ferrari/Maserati dealership trading as Graypaul Birmingham. The franchises will be moved early next year to a newly-built 30-car dealership at Solihull, near Birmingham.
Sytner’s Graypaul division also operates dealerships representing the two Fiat Group prestige brands at Nottingham, Edinburgh and Egham (Surrey).
A Ferrari North Europe spokesman said: “Nick Whale had plans for the franchises in the Birmingham area but Sytner offers stability, investment and a high level of customer service.”
A Porsche GB spokeswoman confirmed Sytner’s acquisition of the two Nick Whale centres.
Last April Nick Whale, chairman of his group, filed at Companies House a statement revealing a group operating profit of £695,000 in 2007 before initial losses on new operations. But there was a £782,000 loss after interest and tax.
The disposals appear to bring to an end Whale’s enterprise that began a decade ago when he left the Ryland Group whose chairman and chief executive was his elder brother Peter.
In the mid 1990s Peter Whale took over as boss from their late father who founded the company.
Nick Whale said after starting his own business: “I wanted to get out of plc land. And, besides, working with my brother was not easy.” He was ambitious and his group grew quickly, gaining Toyota, Lexus, Lotus and AC franchises over the years.
Last year Whale sold a BMW dealership in Warwick, and a Mini outlet in nearby Stratford-upon-Avon, to Rybrook Holdings, whose chairman is his brother Peter.
Rybrook, whose franchises include Bentley and Rolls-Royce, was formed from the remains of the larger Ryland Group after various disposals.
DATED: 26.03.09
FEED: AM
The outlets were run by the loss-making Nick Whale Holdngs. Whale could not be contacted by AM.
Mario Vignali, a Sytner franchise director, is now based at the Bromsgrove Ferrari/Maserati dealership trading as Graypaul Birmingham. The franchises will be moved early next year to a newly-built 30-car dealership at Solihull, near Birmingham.
Sytner’s Graypaul division also operates dealerships representing the two Fiat Group prestige brands at Nottingham, Edinburgh and Egham (Surrey).
A Ferrari North Europe spokesman said: “Nick Whale had plans for the franchises in the Birmingham area but Sytner offers stability, investment and a high level of customer service.”
A Porsche GB spokeswoman confirmed Sytner’s acquisition of the two Nick Whale centres.
Last April Nick Whale, chairman of his group, filed at Companies House a statement revealing a group operating profit of £695,000 in 2007 before initial losses on new operations. But there was a £782,000 loss after interest and tax.
The disposals appear to bring to an end Whale’s enterprise that began a decade ago when he left the Ryland Group whose chairman and chief executive was his elder brother Peter.
In the mid 1990s Peter Whale took over as boss from their late father who founded the company.
Nick Whale said after starting his own business: “I wanted to get out of plc land. And, besides, working with my brother was not easy.” He was ambitious and his group grew quickly, gaining Toyota, Lexus, Lotus and AC franchises over the years.
Last year Whale sold a BMW dealership in Warwick, and a Mini outlet in nearby Stratford-upon-Avon, to Rybrook Holdings, whose chairman is his brother Peter.
Rybrook, whose franchises include Bentley and Rolls-Royce, was formed from the remains of the larger Ryland Group after various disposals.
DATED: 26.03.09
FEED: AM
Ford confirms talks on Volvo sale
Ford has confirmed it is in talks with "a number of parties" regarding the sale of its Swedish subsidiary Volvo. The US giant said it was pleased with both the number and "quality" of those who had expressed an interest, but did not reveal any names. Ford is seeking to offload loss-making Volvo as it continues efforts to turnaround its own fortunes. In 2008 Ford made its biggest ever annual loss, despite selling Jaguar and Land Rover for $2.3bn (£1.15bn). Those two UK-based brands were bought by India's Tata Motors. According to reports in Sweden, a number of Chinese firms are interested in buying Volvo. These are said to include Chery Automobile, Dongfeng Motor Group and Chongqing Changan Automobile. "Ford is now talking in more detail to these interested parties about the future for Volvo," said a spokesman. Industry-wide woes Volvo made a loss of $736m in the last three months of 2008, while Ford's overall loss for the whole year totalled $14.6bn. Like most of the world's carmakers, Ford and its Volvo unit have seen sales and profits fall as the global economy has declined since last summer. Ford has been especially affected in its US home market, where like American rivals Chrysler and General Motors (GM), it has also failed to keep up with the growing demand for small, more fuel efficient cars. However, while Chrysler and GM have to date received a combined $17.4bn in state aid from the US government, and recently asked for a further $21.6bn, Ford has so far said it does not need the money. Volvo and fellow Swede carmaker Saab were given 28bn kronor (£2.3bn, $3.5bn) from the Swedish government in December. Saab is owned by GM, which already recent said it was in talks to sell the business. Separately on Wednesday, Fiat chief executive Sergio Marchionnie said he was now more optimistic about the global car industry, saying he expected to see the US economy recover in the second half of this year.
DATED: 26.03.09
FEED: AW
DATED: 26.03.09
FEED: AW
Nissan supports dealer network with business planning
Nissan Motor (GB) Limited has announced that it is implementing a programme to support its dealer network through the economic downturn. Supported by a field based team from apd Group, Richard Clark, Manager of the new Business Planning and Quality Department commented: "Nissan has recently established a Business Planning function in addition to its existing Business Management resource. "The main drivers are the economic climate and the need for dealers to understand, and be prepared for, the ambitious programme of new model launches. "The purpose of the new function is to provide the dealers with in-depth support in operational and financial performance. This is being carried out through an in-depth financial and operational diagnostic driven primarily by the composite reporting structure and the use of a high level business planning tool which will ensure alignment of the dealer and Nissan Motor (GB) Limited's business plans." Richard Clark is supported by three field based managers and the team of Business Management Consultants from apd Group who will be visiting the Nissan dealers and working with them to develop mid-term business plans which will not only help to ensure they stay viable and profitable, but also highlight areas for the dealers where short, medium and long term opportunities for increased business, improvement in processes, or structural or reporting changes will have a positive impact on their business. Scott Elliott, apd Group Commercial Director added: "Taking this approach in the current climate demonstrates Nissan Motor (GB) Limited's commitment to their dealer network and apd are proud to have been chosen as the partner to support this activity. We are confident that the dealers will see real benefit from the hands-on approach our consultants take."
DATED: 26.03.09
FEED: AW
DATED: 26.03.09
FEED: AW
Tata in call for £781m to keep JLR afloat
Jaguar Land Rover wants to tap the UK government's £2.3 billion funding package for vehicle manufacturers to the tune of £781 million to prevent 'devastating' damage to the company. A few days ago the company said it had already applied to the European Investment Bank for £281m in loans - the cash is part of the overall package arrangement. India's Tata Group, which owns JLR, has now warned the government that it needs another £500m or further job cuts are inevitable. Tata Group boss Ratan Tata is reported to have said: "If funds are not available, a company will not be able to run. So lay-offs will take place, redundancies will take place or in some cases, as has already happened in the UK, not with us, plants have been closed." In criticising the government for failing to provide cash help when first requested weeks ago, he added: "If the attitude is to see who blinks first, then the damage is going to be quite devastating. We are not coming for a bailout." The Department for Business, Enterprise and Regulatory Reform responded by saying that the 'primary responsibility' for funding JLR rested with Tata. A spokesman added: "The Government continues to have discussions with JLR over its long-term business plans."
DATED: 26.03.09
FEED: AW
DATED: 26.03.09
FEED: AW
Model Report from Experian
People carriers only vehicle type to increase in sales, says Experian
Londoners still the most loyal to 4x4s The latest used car sales statistics from Experian®, the global information services company, show that the used MPV segment is delivering resilient performance despite sales of larger engine vehicles falling during October to December 2008. Vehicles with larger engines, including the used luxury, executive, sports and upper medium segments all saw significant falls in sales. However, the used MPV segment was the only vehicle type to see sales increase significantly throughout the country (up 7.9 per cent). Furthermore, Experian's analysis shows that Greater London is the country's MPV hotspot - which grew by 19.0 per cent during the last three months of 2008. In addition, sales of used 4x4s in Greater London bucked the national trend and increased by 14.1 per cent during quarter four. The only other region to see an increase in the sale of used 4x4s during this period was the North - up by just 0.2 per cent. Over all, across the country, used car sales fell by 8.5 per cent during October, November and December, bringing the used car sales figures for the year to 7,179,796 - down 4.9 per cent on 2007. Kirk Fletcher, Managing Director of Experian's Automotive division, said: "The latest used car sales statistics show that despite a greater focus on smaller, more economical vehicles, the fall in sales for the used supermini and mini segments were still on a par with, for example, the upper medium and the sports segments. It indicates that even in a downturn there is a certain degree of reluctance to downgrade in size. "In the current environment, this kind of insight is crucial for dealers to help them identify which used vehicle types are proving most popular with buyers. Experian's MarketView Online can help dealers analyse specific markets, understand key market trends, forecast and benchmark sales, plan stocking levels for used cars and quantify opportunities for vehicle servicing."
DATED: 26.03.09
FEED: AW
Londoners still the most loyal to 4x4s The latest used car sales statistics from Experian®, the global information services company, show that the used MPV segment is delivering resilient performance despite sales of larger engine vehicles falling during October to December 2008. Vehicles with larger engines, including the used luxury, executive, sports and upper medium segments all saw significant falls in sales. However, the used MPV segment was the only vehicle type to see sales increase significantly throughout the country (up 7.9 per cent). Furthermore, Experian's analysis shows that Greater London is the country's MPV hotspot - which grew by 19.0 per cent during the last three months of 2008. In addition, sales of used 4x4s in Greater London bucked the national trend and increased by 14.1 per cent during quarter four. The only other region to see an increase in the sale of used 4x4s during this period was the North - up by just 0.2 per cent. Over all, across the country, used car sales fell by 8.5 per cent during October, November and December, bringing the used car sales figures for the year to 7,179,796 - down 4.9 per cent on 2007. Kirk Fletcher, Managing Director of Experian's Automotive division, said: "The latest used car sales statistics show that despite a greater focus on smaller, more economical vehicles, the fall in sales for the used supermini and mini segments were still on a par with, for example, the upper medium and the sports segments. It indicates that even in a downturn there is a certain degree of reluctance to downgrade in size. "In the current environment, this kind of insight is crucial for dealers to help them identify which used vehicle types are proving most popular with buyers. Experian's MarketView Online can help dealers analyse specific markets, understand key market trends, forecast and benchmark sales, plan stocking levels for used cars and quantify opportunities for vehicle servicing."
DATED: 26.03.09
FEED: AW
Wednesday, March 25, 2009
Profits plunge at HR Owen
HR Owen recorded a £1.3m operating profit before exceptionals from sales of £144m in 2008.
That compared with £4m operating profit from £156m of sales in 2007.
In the dealer group's financial statement to the stock market today, chief executive Nick Lancaster said predicting the year ahead is difficult but he believed that, with the benefit of property-related gains, the group would remain profitable in 2009.
HR Owen's sales of its premium franchises in recent years to focus on its specialist luxury and supercar brands have left the dealer with no debt and substantial cash reserves so it appears well placed to ride out the recession.
DATED: 25.03.09
FEED: AM
That compared with £4m operating profit from £156m of sales in 2007.
In the dealer group's financial statement to the stock market today, chief executive Nick Lancaster said predicting the year ahead is difficult but he believed that, with the benefit of property-related gains, the group would remain profitable in 2009.
HR Owen's sales of its premium franchises in recent years to focus on its specialist luxury and supercar brands have left the dealer with no debt and substantial cash reserves so it appears well placed to ride out the recession.
DATED: 25.03.09
FEED: AM
JLR jobs depend on Government loans
The chairman of Jaguar Land Rover owner Tata Motors told Sky News in an interview on Tuesday that the company could cut jobs in the UK if the Government did not guarantee multimillion pounds of loans to the company.
"If funds are not available a company will not be able to run so layoffs will take place, redundancies will take place," Ratan Tata said.
Sky says that Tata had been in a stand-off with the UK government over the funding.
"If the attitude is 'Let's see who blinks first' the damage is going to be quite devastating," Tata said.
Meanwhile the Daily Mail reports JLR wants £781 million of the Government's £2.3bn car bailout fund.
The Warwickshire based group has also applied to the European Investment Bank for £281 million in loans.
Jaguar Land Rover axed 450 jobs in January due to falling demand.
DATED: 25.03.09
FEED: AM
"If funds are not available a company will not be able to run so layoffs will take place, redundancies will take place," Ratan Tata said.
Sky says that Tata had been in a stand-off with the UK government over the funding.
"If the attitude is 'Let's see who blinks first' the damage is going to be quite devastating," Tata said.
Meanwhile the Daily Mail reports JLR wants £781 million of the Government's £2.3bn car bailout fund.
The Warwickshire based group has also applied to the European Investment Bank for £281 million in loans.
Jaguar Land Rover axed 450 jobs in January due to falling demand.
DATED: 25.03.09
FEED: AM
Tuesday, March 24, 2009
LDV’s fate to be decided this week
The future of LDV and its factory in Birmingham will be determined this week as officials from the Government and the Russian-owned vanmaker discussed last ditch efforts to save the company from administration over the weekend.
LDV has now provided full access to financial, technical information to the Government in order for it to consider the vanmaker’s plans to focus on the manufacture of electric vehicles.
Ministers have been said to be reluctant to offer taxpayer support due to doubts over LDV’s debts and unresolved finances. LDV will also need to have a cash injection of £4 million to stay afloat in order to give enough time for potential investors to carry out due diligence on LDV’s business.
Indian manufacturer Mahindra and Mahindra is believed to be one of three suitors that are interested in investing in LDV. Another company is quoted in The Times as being from the "far east" and the final investor is rumoured to be an ex-executive of a major American carmarker.
Erik Eberhardson, the leader of the management buy-out, said: “I believe LDV can be saved. I continue to have faith in the long term green future of LDV Maxus in Birmingham and that the management buy-out is the best option to secure it."
Evgeniy Vereshchagin, chief executive officer of LDV Group, has stated that he believes the management team has demonstrated that there is a long term profitable future for LDV as a specialist commercial vehicle manufacturer, with low carbon technology ready for production this year.
He said: “The team will be working day and night with the government to secure this opportunity for the workforce, our partners and the British economy.”
LDV has asked the Government for an immediate injection of £4 million in the form of a bridging loan in order to keep the company afloat over the next week. It is understood that PricewaterhouseCoopers have been lined up to act as administrators if the company does go under.
Guy Jones, LDV’s marketing director regularly updates his blog to keep onlookers informed about the latest goings on with the company. You can read it here - http://blog.ldv.com/
DATED: 24.03.09
FEED: AM
LDV has now provided full access to financial, technical information to the Government in order for it to consider the vanmaker’s plans to focus on the manufacture of electric vehicles.
Ministers have been said to be reluctant to offer taxpayer support due to doubts over LDV’s debts and unresolved finances. LDV will also need to have a cash injection of £4 million to stay afloat in order to give enough time for potential investors to carry out due diligence on LDV’s business.
Indian manufacturer Mahindra and Mahindra is believed to be one of three suitors that are interested in investing in LDV. Another company is quoted in The Times as being from the "far east" and the final investor is rumoured to be an ex-executive of a major American carmarker.
Erik Eberhardson, the leader of the management buy-out, said: “I believe LDV can be saved. I continue to have faith in the long term green future of LDV Maxus in Birmingham and that the management buy-out is the best option to secure it."
Evgeniy Vereshchagin, chief executive officer of LDV Group, has stated that he believes the management team has demonstrated that there is a long term profitable future for LDV as a specialist commercial vehicle manufacturer, with low carbon technology ready for production this year.
He said: “The team will be working day and night with the government to secure this opportunity for the workforce, our partners and the British economy.”
LDV has asked the Government for an immediate injection of £4 million in the form of a bridging loan in order to keep the company afloat over the next week. It is understood that PricewaterhouseCoopers have been lined up to act as administrators if the company does go under.
Guy Jones, LDV’s marketing director regularly updates his blog to keep onlookers informed about the latest goings on with the company. You can read it here - http://blog.ldv.com/
DATED: 24.03.09
FEED: AM
Rate cuts ‘losing’ effectiveness
Business leaders are sceptical about any positive effects from the Bank of England’s cut in base rate to an all-time low of 0.5% in its 315-year history.
Ian McCafferty, CBI chief economist, said continuing cuts were becoming less and less effective as a means of stimulating the economy.
Interest rates have been reduced six times since October.
The Bank also said it would expand the amount of money in the system by £75 billion to try to boost bank lending. The extra money will be electronic, not printed notes.
Chancellor Alistair Darling said that increasing the supply of money was “absolutely essential” in order for the UK to recover from the recession. It should get the economy moving to “help people and to help businesses grow”.
DATED: 24.03.09
FEED: AM
Ian McCafferty, CBI chief economist, said continuing cuts were becoming less and less effective as a means of stimulating the economy.
Interest rates have been reduced six times since October.
The Bank also said it would expand the amount of money in the system by £75 billion to try to boost bank lending. The extra money will be electronic, not printed notes.
Chancellor Alistair Darling said that increasing the supply of money was “absolutely essential” in order for the UK to recover from the recession. It should get the economy moving to “help people and to help businesses grow”.
DATED: 24.03.09
FEED: AM
Fiat doesn't want Chrysler's debts
Fiat doesn't want to take on any of Chrysler's debt in its agreement to acquire a 35% stake in the US carmaker.
Fiat “intends to make it absolutely clear that the proposed alliance will not entail the assumption of any current or future indebtedness of Chrysler,” the Italian carmaker told Bloomberg.
However Chrysler chief executive Bob Nardelli had told US TV news earlier this month that Fiat would assume responsibility for Chrysler’s debt equal to its equity stake.
Fiat plans to trade its small-car technology for a stake in Chrysler, which is being propped up by US state aid. Fiat has said it won’t make any cash payment and isn’t committed to future funding.
DATED: 24.03.09
FEED: AM
Fiat “intends to make it absolutely clear that the proposed alliance will not entail the assumption of any current or future indebtedness of Chrysler,” the Italian carmaker told Bloomberg.
However Chrysler chief executive Bob Nardelli had told US TV news earlier this month that Fiat would assume responsibility for Chrysler’s debt equal to its equity stake.
Fiat plans to trade its small-car technology for a stake in Chrysler, which is being propped up by US state aid. Fiat has said it won’t make any cash payment and isn’t committed to future funding.
DATED: 24.03.09
FEED: AM
Mini promises long-awaited corporate attack
Mini is looking for a 50% rise in its corporate volumes after admitting it has not done enough to woo the fleet sector. Mini UK boss Andy Hearn said: "For a lot of fleet business, Mini is a very good car and I don't think we've done enough to promote it to the people who can most benefit. You'll see evidence this year of us getting into the corporate market." Mr Hearn admitted the brand's huge success among retail buyers has meant fleet sales have never been a serious priority. He said: "We probably should have cultivated more fleet business over the last two or three years, it gives us a balance. We'll not go to fleet instead of retail but we need to develop that side of the business. When you look at the people scaling down and reducing emissions, Mini has got a product ready to take advantage of that. We need to make sure user choosers and fleets can see the advantages on Mini - whether it's on the balance sheet or the end user."
DATED: 24.03.09
FEED: AW
DATED: 24.03.09
FEED: AW
