Tuesday, April 07, 2009
UK car firms tipped to get funds
The European Investment Bank is expected to approve significant funding for two car makers in Britain, Jaguar Land Rover and Nissan, later. Jaguar Land Rover has applied for around £270m to invest in research and technologies to develop more environmentally friendly cars. Nissan and its sister plant in Spain are seeking around £360m to produce more fuel efficient, cleaner engines. The moves come as the car industry has been hit globally by a slump in sales. When it is distributed, this funding is set to be the first money provided to any car maker in the UK since the financial crisis began. Under EIB rules, any loan requires that car makers must invest in new technology to lower emissions during vehicle production and driving. The EIB loans are expected to require some form of guarantee from the UK government, before any money is paid. The board of the EIB - the lending arm of the European Union - is debating the topic at a meeting in Luxembourg. Slowing industry Figures released on Monday illustrated the gloomy state of the sector. UK car sales dropped 30.5% in March, compared with the same month a year earlier, according to the Society of Motor Manufacturers and Traders (SMMT). The industry argues that help is needed immediately for car makers to ensure they can survive the recession. Business Secretary Lord Mandelson has set aside £2.3bn in support for the car industry, mostly in the form of loan guarantees as well as direct aid to car makers.
DATED: 07.04.09
FEED: AW
DATED: 07.04.09
FEED: AW
Carmaker Ford cuts debt by $9.9bn
The US carmaker Ford has seen its shares rise 16% in New York, after saying it had cut $9.9bn (£6.7bn) from its $25.8bn debt. The 38% debt reduction will reduce Ford's interest payments by more than $500m a year. It said the move, along with previous agreements with the United Auto Workers (UAW) union, would "substantially strengthen Ford's balance sheet". Shares in the firm closed 52 cents higher at $3.77. 'Strong positive' "As with our recent agreements with the UAW, Ford continues to lead the industry in taking the decisive actions necessary to weather the current downturn and deliver long-term profitable growth," said Ford chief executive Alan Mulally in a statement. Ford is the only one of the big three US carmakers that has not taken government bail-out money to enable it to continue operating. "Clearly it is a strong positive for the company, the ability to reduce liabilities and the interest burden," Fitch Ratings managing director Mark Oline said. "At this point the interest of the bondholders and equity holders are pretty much aligned. Both want Ford to survive the current environment."
DATED: 07.04.09
FEED: AW
DATED: 07.04.09
FEED: AW
Nissan and JLR secure £710m investment package
Nissan and JLR secure European funding
The European Investment Bank (EIB) has approved funding for Nissan and Jaguar Land Rover in the UK.
A £340 million package has been approved by the EIB for Jaguar and Land Rover and Nissan’s UK and Spanish operations have been given a £370m package.
Both manufacturers will invest the money in research and technology of fuel efficient models.
A spokesman from Unite the union said: "We wish it could have come sooner but we have it now so we're very pleased.
"This is certainly not a handout. This is a loan which will be repaid to the Government as soon as we are in a position to do so."
The EIB loans have to be guaranteed by the Government before any money is paid to the manufacturers.
The Federation of Small Businesses welcomed the EIB's support, but said the loans had to be implemented as soon as possible by the government to ensure businesses involved in the supply chain could benefit from it.
DATED: 07.04.09
FEED: AM
The European Investment Bank (EIB) has approved funding for Nissan and Jaguar Land Rover in the UK.
A £340 million package has been approved by the EIB for Jaguar and Land Rover and Nissan’s UK and Spanish operations have been given a £370m package.
Both manufacturers will invest the money in research and technology of fuel efficient models.
A spokesman from Unite the union said: "We wish it could have come sooner but we have it now so we're very pleased.
"This is certainly not a handout. This is a loan which will be repaid to the Government as soon as we are in a position to do so."
The EIB loans have to be guaranteed by the Government before any money is paid to the manufacturers.
The Federation of Small Businesses welcomed the EIB's support, but said the loans had to be implemented as soon as possible by the government to ensure businesses involved in the supply chain could benefit from it.
DATED: 07.04.09
FEED: AM
Saab's contract hire business is closed
Saab dealers have been dealt another blow as the brand’s contract hire business has been closed.
Masterlease, which runs Saab Contract Hire, has also stopped underwriting any fleet contracts for Saab vehicles.
There are currently no alternatives, but Saab said it is talking to “various funding partners about contract hire, both private label and general”.
It added that GM UK stands behind any warranties on Saab products.
One long-standing Saab dealer said there was “nowhere to go at the moment”.
While contract hire was popular, it was difficult to gauge the impact of its withdrawal as Saab had received a lot of bad press which was generally affecting sales, he said.
Another dealer who said contract hire accounted for around 30% of business last year, was switching as many customers as possible to PCP.
He did not expect a replacement partner for Saab contract hire to be found in “the near future”.
DATED: 07.04.09
FEED: AM
Masterlease, which runs Saab Contract Hire, has also stopped underwriting any fleet contracts for Saab vehicles.
There are currently no alternatives, but Saab said it is talking to “various funding partners about contract hire, both private label and general”.
It added that GM UK stands behind any warranties on Saab products.
One long-standing Saab dealer said there was “nowhere to go at the moment”.
While contract hire was popular, it was difficult to gauge the impact of its withdrawal as Saab had received a lot of bad press which was generally affecting sales, he said.
Another dealer who said contract hire accounted for around 30% of business last year, was switching as many customers as possible to PCP.
He did not expect a replacement partner for Saab contract hire to be found in “the near future”.
DATED: 07.04.09
FEED: AM
Budget is vital for the industry
As one of the phenomenons of the crisis impacting our industry and that of the wider economic meltdown, the decision to cancel next year’s British International Motor Show was one of the least surpising or significant.
To have persisted with an event designed to showcase the achievements of the UK motor industry would have appeared a ghastly fraud with carmakers – like so many modern day emperors – counting while their Rome burned around them.
With so many problems besetting our industry the Society of Motor Manufacturers and Traders is to be commended for taking the decision to cancel.
It claims, after all, the industry is in “a state of emergency”. GM’s protracted crisis only exacerbates the situation.
A look at the areas of potential impact provide considerable food for thought: scrappage, of course, will lead the expectations of many.
Most industry watchers say we will hear in the Budget whether the UK is to have a scrappage scheme.
Other areas of concern include changes to VED refunds which could cost the industry £70-80 million a year, the proposed 2010/2011 introduction of a first year rate of tax on new cars, increases to DVLA first registration fees, fuel prices and taxation, benefit-in-kind on dealer demonstrators and rate relief on empty buildings.
The issues at hand are enough to cause sleepless nights at the best of times – in the middle of a crisis, the Budget will be critical to the survival of the sector as we know it.
DATED: 07.04.09
FEED: AM
To have persisted with an event designed to showcase the achievements of the UK motor industry would have appeared a ghastly fraud with carmakers – like so many modern day emperors – counting while their Rome burned around them.
With so many problems besetting our industry the Society of Motor Manufacturers and Traders is to be commended for taking the decision to cancel.
It claims, after all, the industry is in “a state of emergency”. GM’s protracted crisis only exacerbates the situation.
A look at the areas of potential impact provide considerable food for thought: scrappage, of course, will lead the expectations of many.
Most industry watchers say we will hear in the Budget whether the UK is to have a scrappage scheme.
Other areas of concern include changes to VED refunds which could cost the industry £70-80 million a year, the proposed 2010/2011 introduction of a first year rate of tax on new cars, increases to DVLA first registration fees, fuel prices and taxation, benefit-in-kind on dealer demonstrators and rate relief on empty buildings.
The issues at hand are enough to cause sleepless nights at the best of times – in the middle of a crisis, the Budget will be critical to the survival of the sector as we know it.
DATED: 07.04.09
FEED: AM
As one of the phenomenons of the crisis impacting our industry and that of the wider economic meltdown, the decision to cancel next year’s British International Motor Show was one of the least surpising or significant.
To have persisted with an event designed to showcase the achievements of the UK motor industry would have appeared a ghastly fraud with carmakers – like so many modern day emperors – counting while their Rome burned around them.
With so many problems besetting our industry the Society of Motor Manufacturers and Traders is to be commended for taking the decision to cancel.
It claims, after all, the industry is in “a state of emergency”. GM’s protracted crisis only exacerbates the situation.
To have persisted with an event designed to showcase the achievements of the UK motor industry would have appeared a ghastly fraud with carmakers – like so many modern day emperors – counting while their Rome burned around them.
With so many problems besetting our industry the Society of Motor Manufacturers and Traders is to be commended for taking the decision to cancel.
It claims, after all, the industry is in “a state of emergency”. GM’s protracted crisis only exacerbates the situation.
A look at the areas of potential impact provide considerable food for thought: scrappage, of course, will lead the expectations of many.
Most industry watchers say we will hear in the Budget whether the UK is to have a scrappage scheme.
Other areas of concern include changes to VED refunds which could cost the industry £70-80 million a year, the proposed 2010/2011 introduction of a first year rate of tax on new cars, increases to DVLA first registration fees, fuel prices and taxation, benefit-in-kind on dealer demonstrators and rate relief on empty buildings.
The issues at hand are enough to cause sleepless nights at the best of times – in the middle of a crisis, the Budget will be critical to the survival of the sector as we know it.
Most industry watchers say we will hear in the Budget whether the UK is to have a scrappage scheme.
Other areas of concern include changes to VED refunds which could cost the industry £70-80 million a year, the proposed 2010/2011 introduction of a first year rate of tax on new cars, increases to DVLA first registration fees, fuel prices and taxation, benefit-in-kind on dealer demonstrators and rate relief on empty buildings.
The issues at hand are enough to cause sleepless nights at the best of times – in the middle of a crisis, the Budget will be critical to the survival of the sector as we know it.
DATED: 07.04.09
FEED: AM
Labels: Delayed Drafts
GMAC UK unemployment insurance offer
GMAC UK is including free involuntary unemployment cover on all its new and used car finance packages, covering repayments of up to £1,000 per month.
Dennis Foley, managing director, sales and marketing, GMAC UK, said: “Our aim is to give consumers confidence that now is a great time to visit a Vauxhall, Saab or Chevrolet retailer and purchase a new or used car.”
Free involuntary unemployment cover is available on all GMAC finance contracts taken out from April 3 until June 30 this year and provides customers with 24 months of free cover in the event of unexpected involuntary unemployment, covering repayments of up to £1,000 per month, for a maximum of 12 consecutive payments.
DATED: 07.04.09
FEED: AM
Dennis Foley, managing director, sales and marketing, GMAC UK, said: “Our aim is to give consumers confidence that now is a great time to visit a Vauxhall, Saab or Chevrolet retailer and purchase a new or used car.”
Free involuntary unemployment cover is available on all GMAC finance contracts taken out from April 3 until June 30 this year and provides customers with 24 months of free cover in the event of unexpected involuntary unemployment, covering repayments of up to £1,000 per month, for a maximum of 12 consecutive payments.
DATED: 07.04.09
FEED: AM
UK car firms tipped to get funds
The European Investment Bank is expected to approve significant funding for two car makers in Britain, Jaguar Land Rover and Nissan, later.
Jaguar Land Rover has applied for around £270m to invest in research and technologies to develop more environmentally friendly cars.
Nissan and its sister plant in Spain are seeking around £360m to produce more fuel efficient, cleaner engines.
The moves come as the car industry has been hit globally by a slump in sales.
When it is distributed, this funding is set to be the first money provided to any car maker in the UK since the financial crisis began.
Under EIB rules, any loan requires that car makers must invest in new technology to lower emissions during vehicle production and driving.
The EIB loans are expected to require some form of guarantee from the UK government, before any money is paid.
The board of the EIB - the lending arm of the European Union - is debating the topic at a meeting in Luxembourg.
Slowing industry
Figures released on Monday illustrated the gloomy state of the sector.
UK car sales dropped 30.5% in March, compared with the same month a year earlier, according to the Society of Motor Manufacturers and Traders (SMMT).
The industry argues that help is needed immediately for car makers to ensure they can survive the recession.
Business Secretary Lord Mandelson has set aside £2.3bn in support for the car industry, mostly in the form of loan guarantees as well as direct aid to car makers.
DATED: 07.04.09
FEED: BBC
Monday, April 06, 2009
Land Rover loan 'to be approved'
Jaguar Land Rover will get approval for a loan of £270m (300m euros) from the European Investment Bank on Tuesday 7 April, the BBC understands.
According to government sources, the firm has met the loan criteria.
A loan of £364m (400m euros) will also be split between Nissan's plants in Sunderland and Spain, bringing the UK total to £455m (500m euros).
Jaguar Land Rover said it could be a number of weeks before any cash was handed over.
Sources at the company were more cautious, stressing that whilst they were confident the money will be approved, they did not want to assume it would.
Greener technology
If the EIB loan is approved by its board when it meets in Luxemburg, it would then need some form of government guarantee before any monies were disbursed.
They add the deal is likely to be approved by the board of the EIB when it meets in Luxembourg next week.
Business Secretary Lord Mandelson has set aside £2.3bn (2.5bn euros) in support for the car industry which is mostly made up of loan guarantees as well as direct aid to car makers.
The criteria for any EIB loan require car makers to invest in new greener technology to lower emissions during vehicle production and driving.
The car industry has been particularly hit by the recession with UK sales down 22% and car production plummeting 59% on the same time last year.
Jaguar Land Rover cut 450 staff in January 2009 and are seeking further 300 salaried redundancies from its 14,500-strong UK workforce. Some 50,000 British jobs are dependent on the firm.
Staff are essentially working a four-day week following an agreement with trade unions. Hourly-paid employees are working a 35-hour week and a pay freeze has been agreed on the guarantee of no compulsory job cuts for two years.
Based in Gaydon, Warwickshire, it employs about 15,000 people in Castle Bromwich, Coventry and Solihull in the West Midlands and Halewood, Merseyside.
Some 12 million people are employed in the European car industry, including 800,000 workers in the UK.
DATED: 06.04.09
FEED: AW
Court approves SAAB restructuring
The court, in Vanersborg, approved the extension after hearing that no creditors had entered reservations against Saab's proposed reorganization plan, which envisages asking creditors to write off 75 percent of its non-prioritized debts. "The court has decided that the reconstruction can continue until May 20 at the latest, if no other decision is taken before then," the court said.
A court-appointed administrator, Guy Lofalk, said about 20 "actively interested parties" were eyeing Saab, whose U.S. parent has said it will cut its ties with the brand by Jan. 1, 2010
DATED: 06.04.09
FEED: ANE
Thursday, April 02, 2009
Experian wins new contract
The Retail Automotive Alliance has signed a renewed contract with Experian for vehicle data checks. It won a tender process under which the RAA considered products from rival provenance check companies. The three year contract with the RAA's 22 dealer group members represents an expected stock turn of 103,000 vehicles.
Experian was first appointed as the RAA's supplier of provenance services in 2007.
Marc Matthew, the RAA chairman and also chairman of the Lifestyle Europe dealer group, said: “We have enjoyed an excellent working relationship with Experian over the last two years, and our review of other provenance services showed that Experian’s continues to be the best choice in the marketplace. So much so, all of our members were unanimous in the decision to continue our relationship with Experian.”
DATED: 02.04.09
FEED: AM
Experian was first appointed as the RAA's supplier of provenance services in 2007.
Marc Matthew, the RAA chairman and also chairman of the Lifestyle Europe dealer group, said: “We have enjoyed an excellent working relationship with Experian over the last two years, and our review of other provenance services showed that Experian’s continues to be the best choice in the marketplace. So much so, all of our members were unanimous in the decision to continue our relationship with Experian.”
DATED: 02.04.09
FEED: AM
GM Chief says Bankruptcy a consideration
General Motors' new chief executive said yesterday that the carmaker is prepared to enter bankruptcy if it cannot restructure by itself.
Fritz Henderson, who became CEO after Rick Wagoner was ousted at the weekend, said: "Our preference is to do this outside a bankruptcy process."
However he revealed the carmaker has made contingency plans for bankruptcy should it be impossible to renegotiate its committments to bondholders and the United Auto Workers union.
DATED: 02.04.09
FEED: AM
Fritz Henderson, who became CEO after Rick Wagoner was ousted at the weekend, said: "Our preference is to do this outside a bankruptcy process."
However he revealed the carmaker has made contingency plans for bankruptcy should it be impossible to renegotiate its committments to bondholders and the United Auto Workers union.
DATED: 02.04.09
FEED: AM
Pendragon Confirms Discussions with Lenders
The UK's largest dealer group Pendragon today confirmed that it is in the process of negotiating its borrowings.
In a statement, it said: "The Board of Pendragon notes the increase in the Group's share price following recent press speculation about a potential restructuring of its existing borrowing arrangements.
"Pendragon confirms it has been reviewing its financing structure in light of the current economic climate.
"As part of that review we can confirm that we are having discussions with lenders regarding changes to our loan agreements which would make them more appropriate for anticipated future trading conditions.
"We will make a further announcement when appropriate.
Pendragon has been busy cutting the debt pile left over from its takeover of Reg Vardy by reducing staff count and dealer outlets.
The company was forced to request a covenant waiver late last year in order not to breach the terms of its borrowings.
There had been speculation that renegotiating its debts will cost £25m, including a one off hit of £7.5m.
DATED: 02.04.09
FEED: AM
In a statement, it said: "The Board of Pendragon notes the increase in the Group's share price following recent press speculation about a potential restructuring of its existing borrowing arrangements.
"Pendragon confirms it has been reviewing its financing structure in light of the current economic climate.
"As part of that review we can confirm that we are having discussions with lenders regarding changes to our loan agreements which would make them more appropriate for anticipated future trading conditions.
"We will make a further announcement when appropriate.
Pendragon has been busy cutting the debt pile left over from its takeover of Reg Vardy by reducing staff count and dealer outlets.
The company was forced to request a covenant waiver late last year in order not to breach the terms of its borrowings.
There had been speculation that renegotiating its debts will cost £25m, including a one off hit of £7.5m.
DATED: 02.04.09
FEED: AM
