F&I Management & Training

Lloyds-owned Black Hose Motor Finance has closed point-of-sale dealer finance operations of Bank of Scotland Dealer Finance (previously known as Capital Bank), which it acquired when it bought parent company HBOS at the end of 2008.
Black Horse will become the group's sole brand for point-of-sale dealer finance for the motor sector and all the dealers that previously used Bank of Scotland will now be offered to switch to use Black Horse instead.
This change will result in the loss of 910 full-time jobs which affects 985 full and part time colleagues over a two-year period.

DATED: 25.04.09

FEED: AM

Fiat is one of several potential buyers of part of Vauxhall/Opel.
Sources at the Opel works council, and officials in the German Government, have confirmed that Fiat has shown an interest in GM Europe.
They also revealed that Canada-based components supplier Magna is also interested.
GM Europe aims to attract investment by offering a stakeholding in its operations. It has already asked European governments for financial help.
Fiat played down the reports, as it is already focused on progressing a likely joint venture with Chrysler.
Chrysler has until the end of April to seal the alliance and secure US state aid, otherwise it may face bankruptcy.

DATED: 25.04.09

FEED: AM

Pierre Louis Colin, who has been Managing Director for Peugeot in the UK for just over three years, is moving to Paris where he will head the newly created Division in charge of developing both the strategy and the programmes for the next generation of electric and diesel-hybrid vehicles, for the Peugeot brand. During his time at Peugeot UK, Pierre Louis has presided over a number of important structural changes, both within the Company itself and within the Peugeot UK Dealer network. With effect from June 1st 2009, Jonathan Goodman moves into the position of Managing Director for Peugeot's UK operations. Jonathan is a very experienced member of the Peugeot senior management team having joined the Company in 1986. The first 11 years of Jonathan's career with the Company were spent within Peugeot UK before undertaking a series of roles for Peugeot within Europe. These included responsibility for MPV product planning, and responsibility for the relationships of a number of central European Peugeot companies with the Paris centre. Jonathan returned to the UK in 2002 to become Marketing Director for Peugeot UK, followed in 2005 by the post of Director of Corporate Communications for PSA based in London. Since 2007, he has been the Managing Director for Peugeot Belgium and Luxembourg. Jonathan is 45 years old, and married with two children.

DATED: 25.04.09

FEED: AM

Volkswagen is considering an audacious bid for Porsche's automotive business, in another extraordinary twist in the corporate saga surrounding Germany's most famous car dynasty. That would turn upside down Porsche's takeover of Volkswagen, which started more than three years ago. Volkswagen is Europe's largest car company with a turnover 15 times as great than Porsche's. The move would allow Ferdinand Piech, grandson of Ferdinand Porsche, the founder who designed the Volkswagen Beetle, to integrate the sports carmaker into Volkswagen as its 10th marque and thus finalise his task of reuniting his family heritage. The Porsche and Piech families jointly own Porsche SE, the Porsche holding company, as well as 50.76 per cent of Volkswagen's shares. The potential acquisition of Porsche by Volkswagen is viewed as one solution to helping the sports car manufacturer overcome its €9 billion debt mountain.

DATED: 25.04.09

FEED: AW

Several manufacturers have confirmed that their dealers will be taking part in the Government scrappage scheme.
It has been confirmed that if a manufacturer is taking part in the scheme, they must offer their entire model range, they cannot pick and choose what models to offer.
Some manufacturers have indicated they will put additional incentives onto certain models to make them even more attractive to buyers.
- Advertisement -
');
//-->

Here is a list of manufacturers that have confirmed that they will be taking part:
Ford
The scheme will be available across Ford's entire range of vehicles.
Based on the information available so far, Ford plans to boost the potential of the Government's vehicle scrappage scheme with the addition of supplementary discounts on all its larger cars, which together represent savings of up to £4,500 on a new Ford Mondeo, for example.
Called "Scrappage Plus" - the discounts will be available over and above the Government and industry's shared £2,000 subsidy. They start at an additional £1,250 for a Ford Fusion and extend to £3,000 for a Ford Galaxy.
Nigel Sharp, Ford of Britain managing director, said: "We look forward to receiving full details of the programme and working with dealers to make the most of the scheme for our customers."
Audi
Audi has confirmed that it is taking part. It is asking interested customers to register at its website and will update them with more information when it's available.
Kia
Kia has decided to support the scrappage scheme. Although final details of how the scheme will work are still to be settled between the SMMT and Lord Mandelson's department for Business Enterprise and Regulatory Reform, Kia dealers around the UK are ready to take orders now under the new scrappage scheme.

Volvo
Customers can use the scrappage scheme on any new Volvo and can get an additional deposit contribution if the customer buys the car on manufacturer finance. For example, on a C30 Drive S Volvo - the customer will get an extra £2,027 on top of the £1,000 from the Government and £1,000 from Volvo.
Peugeot
Peugeot is participating in the scrappage scheme but is asking customers to make their interest known via its website. While it's not yet clear which models will qualify, a 107 is featured in its scrappage scheme marketing in the newspapers today.
Citroen
In addition to the scrappage scheme Citroen is offering customers £1,000 for cars registered between 1st January 2000 and 31st December 2002 and £750 to customers with a car registered between 1st January 2003 and 31st December 2004.
There is no obligation to scrap these vehicles.
Hyundai
Hyundai has said it will meet the £1,000 that the Government is putting up for scrappage.
Hyundai’s managing director Tony Whitehorn said: “Although we had hoped for a £2,000 contribution from the Government, £1,000 will help drive business through our doors at this time of recession."
Renault
Renault will be offering the scrappage scheme. It plans to offer even greater incentives on its new car and van ranges than just the £2,000 outlined in the scheme. Twingo, Clio, New Kangoo and the new Megane, plus its LCV ranges will feature in the offer.
Nissan
Nissan will be taking part in the scheme which will see all of its models made available. However, Nissan is also extending the £2,000 minimum trade-in offer to models aged 8-10 years old for any customer choosing one of the car maker’s British built range – that includes any new Micra, Note, Qashqai or Qashqai+2.
Volkswagen
VW has welcomed the initiative and intends to participate in the scheme. Exact details of VW’s participation in the scheme will be announced to potential customers in due course.
In the meantime, buyers are being encouraged to register their interest in purchasing a new VW with the help of the scrappage scheme at their local dealer.

DATED: 25.04.09

FEED: AM

Dealers face a new finance challenge from Tesco, which plans banks in 30 stores by December.
The concept has been tested in Glasgow for three years and its stores in Bristol, Blackpool and Coventry start selling financial products this spring.
Paul Harrison, Finance & Leasing Association head of motor finance, said 53% of buyers of new cars now use point-of-sale finance.
“Its flexibility when buying new and used cars has remained attractive to customers during the economic downturn,” he said.
“The specialist motor finance market is highly competitive which reflects the attractive rates.”
Tesco tested the potential of the finance sector in partnership with the Royal Bank of Scotland.
In February Tesco’s share of UK grocery spending fell to a three-year low because of competition from value chains. Now it plans to lift profits from around £400 million to £1 billion through its retailing services division, which includes internet sales, Tesco Telecoms and in-store banks.
The Glasgow store offers loans, credit cards, insurance and terminals for its price-comparison service. Current accounts within two years and mortgages later are likely as the network expands.

DATED: 25.04.09

FEED: AM

As the Government prepares to launch a three-year National Fraud Strategy on May 5, the Finance & Leasing Association reports prevention of losses to criminals totalled £123 million in the final quarter of 2008 – a 36% year-on-year improvement.
The FLA says that when a member receives a finance application from a dealer it undertakes extensive background checks to establish the customer’s existing commitments.
Underwriting teams compare information provided by a customer with the enquiry documentation to ensure consistency. Customers may be asked supplementary questions before a final decision is made.
Stephen Sklaroff, FLA director general, said the National Fraud Strategy was to be applauded.
“Fraud often increases in a recession,” he said. “Motor finance companies have already created a partnership with the Association of Chief Police Officers to investigate and recover vehicles obtained via fraud.”
Sklaroff said that by tackling fraud dealers and lenders could prevent higher costs being passed on to customers so dealers could continue to provide competitive deals.
“It is vital the Government uses the National Fraud Strategy to deliver further action to address financial crime, particularly at a time when businesses and consumers are already struggling with current economic conditions,” he said.
Fraud increases when economic conditions deteriorate because some previously creditworthy customers find it more difficult because of changes to lenders’ underwriting criteria.
Those who break the law provide false information on applications to increase their chances of being approved. Motor fraud is attractive because there is a high-value tangible asset to sell if they are successful.
Chris Sutton, Black Horse managing director, said: “We have encountered more fraud cases as the economic situation has worsened and launched an industry-leading programme of prevention procedures.
“Fraudsters are increasingly inventive. Hiding adverse credit history is still the most common fraud but other ‘hard frauds’ where the deceptions are more deeply embedded pose the greatest threat of loss. ”

DATED: 25.04.09

FEED: AM

ACF Car Finance, which sells used cars as well as providing retail loans, is in bullish mood after last year’s rebranding.
Norman Beaumont, sales and marketing director, said: “We continue to prosper as more used car and sub-prime finance competitors reduce business volumes or cease to trade altogether.”
Despite economic pressures on consumers, demand for quality used cars and tailored finance remained positive and ACF Car Finance was increasing its share of a growing market.
Welcome Finance Services, a sub-prime rival, and its parent Cattles plc has been weakened by the credit squeeze. Cattles is cutting its loans this year to £250 million, a quarter of its 2008 total, and is shifting advances away from cars to shorter-term loans to generate cash more quickly.
Beaumont said an advantage for ACF was being part of the privately-owned The Funding Corporation which made it easier to source finance for retail loans.
“Welcome Finance Services’ decision to withdraw from the third party HP market last April has had a profound effect. Little did we realise at the time how beneficial this decision was to be for us,” he said.
In January ACF reported that its Chester customer call centre had processed a record 350 applications in one day.
Beaumont said: “The business focus is on driving quality rather than volume.”
ACF Car Finance’s eight branches (Leeds, Manchester, Nottingham, Birmingham, Bristol, Dunstable, Isleworth and Maidstone) sell used cars, but most loans are made via the call centre.
“The recession has driven more and higher-quality customers into our marketplace as traditional sources of credit have become much more selective,” said Beaumont. “This is allowing us to be more selective.
“There is a strong likelihood the number of used retail cars with less focus on quality preparation could enter the market. We wouldn’t want to be associated with that – we have considered it prudent to tighten our lending criteria.”

DATED: 25.04.09

FEED: AM

Struggling US carmakers General Motors, which owns UK-based Vauxhall, and Chrysler, are to be granted a further $5.5 billion to aid restructuring and stave off bankruptcy. Chrysler looks set to get $500 million as it works to its May 1 deadline to restructure, probably with the aid of a partnership with Fiat. Meanwhile, GM looks set to receive up to $5bn as it works to its June 1 deadline set by the US government. A federal report said the money will be made available to both companies for working capital as they try to meet their respective deadlines.

DATED: 25.04.09

FEED: AW

Bosses at Nissan's Sunderland plant have cautiously welcomed plans to offer car owners £2,000 to trade in their vehicles for new ones. The chancellor unveiled the scheme, in which cars more than 10 years old would be scrapped in return for the discount, in his budget on Wednesday. Trevor Mann, Nissan Europe Senior Vice President, said it was a positive move. But he raised concerns about the financial contribution expected from already cash-strapped manufacturers. To benefit from the scheme, a buyer must have been the registered keeper of the car that is due to be scrapped for at least 12 months. Half the discount would be paid for by the government, with manufacturers contributing the rest. 'Very valuable' Almost 5,000 people work at Sunderland's Nissan plant, making it one of north-east England's biggest employers. But in January, amid the crisis in the motor industry, the firm announced plans to axe 1,200 jobs at the site. Speaking on BBC Newcastle, Mr Mann said: "Overall it's good news, I believe, first and foremost for the consumer - £2,000 off a new car is obviously very valuable." He added: "I think however the scheme puts a lot of the financial and administrative burden on the manufacturers during a very difficult time." Dr Paul Nieuwenhuis, from the Centre for Automotive Industry at Cardiff Business School, said Mr Mann was right to be cautious. It could take more than £2,000 to convince someone who can only afford to run a 10-year-old car to buy a new one, he warned. "Of course they [the industry and dealers] are strapped for cash as well - they can't get loans and things like that. "It might be politically very convenient but I don't know how much practical benefit it's going to have to the industry."

DATED: 25.04.09

FEED: AW

Glass's, publisher of industry 'bible' Glass's Guide, is predicting that the vehicle scrappage scheme announced in today's Budget statement is unlikely to have a significant impact on the residual values of used cars - of any age. Some industry commentators have suggested that the prices being asked for nearly-new cars (i.e. those under one year of age) would appear prohibitively high next to the price of new cars discounted under the scrappage scheme. However, according to Adrian Rushmore, Managing Editor at Glass's, prices for used cars are unlikely to be negatively impacted. "The majority of consumers already interested in purchasing a nearly-new car will not be existing owners of cars 10 years or older, and will therefore not be eligible for the scrappage bonus. For this reason demand will not switch from late-plate to new vehicles, harming late-plate values." He adds, "Most of the vehicle manufacturers' share of the £2,000 scrappage bonus [£1,000 under the Chancellor's proposals] is already on offer to potential car buyers in the form of sales discounts and incentives. The manufacturers' scrappage bonus will largely replace these incentives, not supplement them, and today's used car values already take full account of current low transaction prices on new cars. "The scrappage scheme is likely to increase demand for new city cars and superminis more than any other type of car. Many of these cars are already in limited supply, and the expected additional demand will merely serve to extend delivery lead times. Customers not eligible for the scheme will also find themselves joining lengthening queues, and are therefore more likely to consider a late-used alternative. In addition, manufacturers may also seize the opportunity to increase list prices on those models in the highest demand. These factors will conspire to support - or possibly even promote - prices for the nearly-new small and lower-medium car." These factors all point to the scrappage scheme having very little impact on the used market over the coming months, concludes Rushmore. "While we expect values to ease back during the summer months - as they would during any typical year - we do not forecast any further increase in rates of depreciation as a result of the introduction of the scheme."

DATED: 25.04.09

FEED: AW

Fiat plans to take a majority stake in General Motors' Opel/Vauxhall brands, Opel labor boss Klaus Franz told the German press agency DPA today.Franz was commenting on German media reports that Fiat and Opel are in discussions for Fiat to take over Opel. GM and Fiat declined to comment on the reports.Franz, who is deputy chairman of Opel's supervisory board and chairman of the carmaker's works council, told DPA that unions will oppose a Fiat takeover of Opel.GM is carving its German-based Opel and its British sister brand Vauxhall into a separate unit and is seeking outside investors for the brands. GM has not ruled out selling a majority stake in Opel/Vauxhall.

DATED: 25.04.09

FEED: ANE

Belinda Poole, the head of Lexus GB, is looking at ways of making the business more profitable for dealers.
The move comes as Lexus’s revealed the network is averaging a 0.3% return, dragged down by some outlets which are loss-making as the premium brand suffers from the product onslaught of its German rivals.
Its share of the premium market has dipped to 2.2% from 3.8% in 2007, when it sold a record 15,119 units.
This year, the brand is targeting 8,000 registrations, around the level it achieved nine years ago.
Long-term, its future looks brighter as the product focus shifts from US market demands to meet European customers’ desires. The IS range has just gained a sub-150g/km emissions model. The RX450h arriving later this year will also be below that threshold, and a C-segment model is likely within two years.
But short-term, the Lexus GB team, led by Poole, is working to help dealers improve performance and profitability in the areas where they can make a mark – aftersales, used cars and customer retention.
“From the retailers perspective we’re looking at how to make it a more profitable business model for them,” said Poole. She has looked at specific key performance indicators for dealers, including used cars, service absorption, generating retail aftersales work and winning back lapsed customers.
The network has decreased to 50 centres. Lookers’ outlets in Southend and Brighton and Arnold Clark’s in Aberdeen dropped new car sales to become authorised repair centres in the last year.
Poole said: “The rest of the retailers will remain stable. The centre network has to be at the right sizeto provide the right geographical coverage for our customers.

DATED: 25.04.09

FEED: AM

“If you think inflation is bad, just try the alternative” said an economist recently.
His point was that deflation leads to economic depression, as people see no point buying something that is going to be cheaper next year.
Well, the UK car industry is doing its bit to avoid deflation, led by market-leaders Ford.
The recent announcement of a 3.75% rise from April 1 was described as “counter-intuitive” by the MD of Ford, Nigel Sharp, but was met with a sigh of relief by other manufacturers planning to do exactly the same thing.
The expected tabloid backlash to Ford’s announcement failed to materialise, as Ford took the sensible precaution of wheeling out Sharp to brief newspaper hacks first.
His message was quietly-spoken but bleak – Ford has lost an amount “well into nine figures” because of the devaluation of the pound. While the journalists were mentally calculating that meant well over £100 million, he went on to say that Ford’s entire profit margin in the UK had been wiped out just by currency losses.
Ford used the example that, if 20% of the price of a car is a contribution to research and development, other overheads and corporate profit, then a 30% devaluation more than wipes out that contribution.
Ford did not quote their own margins, but no volume car maker is going to have a contribution of much above 20%, even in the good years.
Hence Ford felt it had no alternative to raising prices – and you can be certain that everyone else will follow suit.
So why did Ford go first? The simple fact is that in all industries, prices are set by the market leader. No one wants to be out of line with a bigger competitor, so they wait to see which way No. 1 goes.
Indeed, it is a reflection of the depths of the recession that prices have not been raised earlier. Previously when the pound collapsed (e.g. 1992), car companies were quicker to increase prices – and happy to keep increasing them.
Today the idea of “Treasure Island Britain”, with car prices 20% higher than mainland Europe seems laughable. Right now, “Money Pit Britain” is closer to the mark – even after the recent price rise, Ford has still not recovered its currency losses.
Indeed, cars are now starting to be re-exported from the UK. We spoke to one dealer in top-end luxury cars and he reported a mini-boom in exporting right-hand-drive Ferraris and Bentleys to other right-hand-drive markets, from Cyprus to the Far East.
A grey market in cars leaving the UK. There seems to be no end to the weird effects of the current financial crisis.

DATED: 25.04.09

FEED: AM

PSA Peugeot Citroën has streamlined its UK back office management structure in a cost-cutting move that it expects to increase efficiencies through economies of scale.
Four directors have been appointed to head PSA’s activities across parts, aftersales, quality and training for both brands. Field teams will continue to be solus Citroën or Peugeot.
One dealer believes this could lead to further closer ties, and possibly a move to dual-brand Peugeot/Citroën franchised outlets. “The cars come off the same platform and it would seem to be a logical objective for the group,” he said.
Another dealer said: “I can see a potential benefit in economies of scale for PSA, its dealers and customers if this change is carried through in the right way. Most dealers in the two networks will be prepared to give this change a chance.”
Three of the four new directors come from Peugeot. David Higgins (parts) was previously in charge of Peugeot’s UK parts operation, and Andrew Bye (quality) had a corresponding responsibility for the manufacturer. His role also included customer relations.
Andrew Didlick (training) was previously a regional sales director (Peugeot has now dropped that job title) after moving from head of PR.
Stuart Hodge, the new PSA UK aftersales director, was until this month in that role only for Citroën. Bob Lenton has retired as Citroën UK replacement parts director.
Hodge and Bye report to Citroën UK MD Xavier Duchemin, and Higgins and Didlick to Peugeot UK MD Pierre Louis Colin.
Marc Raven, Citroën UK communications director, said: ”We see these changes as consistent with organisation at other multi-marque manufacturers and they will benefit dealers through economies of scale, greater experience and more support.”
Andrew Sutton, Peugeot’s UK public relations director, said: “These changes do not mean Peugeot and Citroën are merging. There are a certain amount of savings but this would have happened without a recession.“

DATED: 25.04.09

FEED: AM

A Tyneside commercial vehicle group that expanded into car sales two years ago has lost the bulk of £250,000 invested in Mitsubishi and Suzuki dealerships.
Bell Truck Holdings’ offshoot Bell Car Sales went into voluntary liquidation owing £1.2 million.
Yvonne Bell, joint owner of Bell Truck Holdings with her sister Carolyn Bayne, said: “We felt the market slow down a year ago when pump prices rose and affected 4x4 sales. Our small cars sold but were less profitable.
“Mitsubishi helped by cutting costs, but it was too late. “Suzuki was also supportive. But in the end we couldn’t see a future or how to restore cash flow, and had to close the car business so that we did not jeopardize the truck side of the business.”
Bell said 33 people working for the car division had lost their jobs and there were 20 redundancies in the truck business in December.
“People think there are big margins in £80,000 trucks, but there aren’t,” said Bell. “Dealers rely on revenue from aftersales.”
The group, founded by the sisters’ father, operated a Mercedes-Benz car dealership at Coldstream near the Scottish border in the 1980s.
“We were forced to lose the franchise when Mercedes decided it wanted big dealer groups,” said Bell.
She thought the group was unlikely to seek a car franchise again.
Simon Lundy, of liquidator Begbies Traynor, said Bell Car Sales was a separate limited company and so the group was not responsible for its debts.
“The venture into car sales seemed a logical business move for the group, which blames the decline in the economy for the liquidation,” he said.
Bell Car Sales operated a Mitsubishi dealership on the outskirts of Newcastle upon Tyne, and a Mitsubishi/Suzuki outlet in Sunderland. Both premises were rented and the main asset is a freehold aftersales and repair centre in Newcastle.
Lundy expects the liquidation procedure to take between 12 and 18 months.
“Because of the recession we are likely to have some difficulties gaining money owed to Bell Car Sales.”
Dale Wyatt, an executive in Suzuki GB’s dealer development department, said: “Bell Truck Holdings was both professional and honourable regarding the closure of its Suzuki franchise. We had no concerns about the viability of the dealership.”
Sales, service and parts customers have been advised to use Hodgson Suzuki in Wallsend, or Springfield Suzuki in Gateshead.
Wyatt said: “There are no plans to replace Bell Car Sales at this time although area open point studies are regularly undertaken.”
A Mitsubishi Motors spokesman said Hodgson took over the Newcastle area franchise before the liquidation of Bell Car Sales which operated as a service dealer for an agreed period.

DATED: 25.04.09

FEED: AM

Experian, the global information services company, has appointed Mark Nuttall and Barry Nicholson as general manager and sales director of its automotive business in the UK.
Reporting to Kirk Fletcher, managing director of Experian’s business information division, both Nuttall and Nicholson will be responsible for spearheading the automotive business’s revenue growth and the development of its products and services.
Nuttall joined Experian in 1992 and has held a number of senior sales management roles. Prior to his new appointment he was general manager of credit and risk for the Experian’s business information division.
Nicholson was most recently head of sales for finance and leasing within Experian’s business information division. Before working at Experian, he held senior sales positions in the motor, asset finance and leasing sectors.

DATED: 25.04.09

FEED: AM

General Motors (GM) has confirmed it is in talks with a number of potential third party investors about them taking a stake in its German carmaker Opel. A spokesman said that Fritz Henderson, the GM president and chief operating officer "has been quoted as saying we are talking to six interested parties". Reports said GM was talking to four financial and two strategic investors. GM would not confirm that it was seeking a reported minimum 500m euros ($645m;£444m) from investors. US carmaker GM is facing potential bankruptcy at home and is running short of cash in Europe. However resolving the problems facing Opel is proving far from smooth. State support As well as seeking private investors Opel, which is suffering from a slump in sales like most global carmakers, has called for a cash injection from Germany to help its survival. Germany has ruled out a bailout of Opel but said it would provide loan guarantees for a third-party investor. At the end of March German Chancellor Angela Merkel gave assurances that any investor in Opel would have state support. Last month deputy economic minister Dagmar Woehrl claimed in the German parliament that GM had pledged the intellectual property of Opel as security against capital injections it had received from the US government. GM, which was toppled by Toyota as the world's top-selling car firm earlier this year, is trying to wind down some of its European operations as part of a massive cost-cutting exercise.

DATED: 25.04.09

FEED: AW

Pendragon, Britain's largest car dealership group, has struck a vital refinancing agreement which will offer its debtholders a sweetener through warrants for just under 10 per cent of the company's shares. The group has spent the last few months seeking a deal with lenders over its debts of £288 million following the dramatic slump in car sales. The company is expected to announce the refinancing package alongside annual results in the next two weeks, although the finishing touches are still being put to the agreement. Pendragon has forecasted 2008 losses of £30 million.

DATED: 25.04.09

FEED: AW

Volkswagen looks set to roar past Toyota as the world's top-selling motor group for the first time. Volkswagen, which includes brands such as Audi, Skoda and SEAT in its stable, says vehicle sales fell 11.4 per cent in the first three months of the year to 1.39 million. That gives the group an 11 per cent global market share, up from 9.7 per cent a year earlier. Toyota has given no forecast for retail sales, but its latest estimate for the first quarter is 1.23m vehicles, down 47 per cent on a year ago. Toyota has been the world's biggest carmaker since the first quarter of 2007 when it overtook General Motors, which had held the position since 1931.

DATED: 25.04.09

FEED: AW

While the residual values of most used cars have experienced an unprecedented rise over recent months, new analysis from Glass's suggests that some vehicles with higher-capacity petrol engines have made a more modest recovery. In particular, the fortunes of used cars in the upper-medium segment are increasingly linked to the size of the engine powering the car. For example, after one year and 12,000 miles a Vauxhall Vectra 1.8-litre petrol Design five-door (2008 '08-plate) has a trade value of £7,650, while its 2.2-litre counterpart is worth £6,700 - some £950 less, despite costing £600 more when new. Similarly, a Skoda Octavia 1.6 FSi Ambiente (2008 '08-plate) has a trade value of £8,175, whereas its 2.0-litre stablemate of the same age and specification has a trade value of £8,275 - a mere £100 more, despite costing an extra £1,220 new. Jeff Paterson, Chief Car Editor at Glass's, comments, "The days of larger engines automatically meaning higher prices are clearly over. Motorists' budgets are tighter than ever, making thirstier models much less desirable than their more efficient, lower-capacity siblings," adds Paterson. "Whilst this is a trend that has been in play for many years, it is now gathering momentum as UK motorists gravitate towards more frugal cars and chase smaller insurance premiums and lower rates of road tax." Looking ahead, Paterson believes that the long-standing price premiums for cars with larger engines may eventually erode altogether. "Customers for whom residual value prospects are not a major issue could find that a more powerful and responsive car is now easily within their budget."

DATED: 25.04.09

FEED: AW

The rapid growth in the use of cars over the last century appears to have halted, although the UK remains "car-reliant", the RAC Foundation says. While the number of cars being bought continues to grow, and is widening to new groups, the number and length of car trips fell in the decade to 2006. Car ownership went up by 30% to 29.6m, while the UK population rose by 4%. The RAC Foundation said the car was here to stay but there needed to be a focus on changing the types being used. In the past 20 years a consistently high number of people, 80-90%, have said they would find it very difficult to adapt to not having a car, said the report. Budget call The RAC Foundation commissioned the study - The Car in British Society - to look at the changing nature in car ownership, and an independent research team from Oxford and UCL universities carried out the work. They used data obtained through the government's National Travel Survey, which since 2002 has involved between 8,000 and 9,000 households. Information was also obtained through focus groups and other research, and statistics gathered from the wide-ranging annual Transport Statistics Great Britain report, compiled at the Department for Transport. The RAC study concluded that car use was still "embedded" in most aspects of daily life, and that people believed the benefits of having a car still outweighed the disadvantages. The report said indications showed the declining level of car usage per person was partly due to land-use changes and road development. Stephen Glaister, director, RAC Foundation Also, car ownership was now open to a wider group - such as older people and the less well-off - who typically used their cars less, it added. The report also said a decrease in weekly mileage in the decade to 2006 may have been due to more people travelling abroad, increased congestion putting people off, and better public transport in some urban areas. The RAC Foundation urged the government to "recognise how crucial the car is to all sectors of society" in Wednesday's Budget. It said in order to avoid hitting the poor hardest, policies to reduce carbon emissions should focus on charging for usage rather than taxing car ownership. It said national road pricing could achieve that aim, but would be accepted by drivers only if road tax and fuel duty were abolished, and more was spent on road networks. The report also found:
In 1989 each car was used for an average of 30 trips per week, which declined to 24 by 2006. The distance travelled by car per week dropped slightly
Car-licence holding among adults is the highest in rural areas, with 85% of households having one - a link to the availability of public transport
Nearly half - 46% - of households have a relatively low annual mileage of 1-5,000 miles, while 10% travel more than 15,000 miles per year. The report's lead researcher, Dr Karen Lucas from Oxford University, said: "Our research suggests that most people cannot envisage a future without their cars and many would go to considerable lengths to continue using them. "The current policy debates about reducing car use, through road pricing and personal car allowances, do not fully consider the impact that this might have on people's lives, especially for those on low incomes or with limited options for alternative modes of travel." RAC Foundation director Stephen Glaister said British people were "not addicted to driving", but were "car-reliant". "The car... is the bedrock of our society and our economy... there is no question of getting rid of cars. "Instead we must change the type of cars we use - smaller, lighter, more fuel-efficient models with fewer cradle-to-grave CO2 emissions."

DATED: 25.04.09

FEED: AW

SsangYong is now offering a five year/250,000 mile warranty on its models Kyron, Rexton and Rodius.
The initiative follows the success of a similar SsangYong scheme in Northern Ireland over the past year.
The carmaker said the move “clearly demonstrates confidence in SsangYong’s build quality and reliability and will appeal to pragmatic buyers looking for rugged ability coupled with value for money”.
It is also offering five years/50,000 miles free servicing on purchases until the end of June.
SsangYong sold 86 units in March, with a year-to-date total of 115 compared to 286 for the same period last year.

DATED: 25.04.09

FEED: AM

Two motor retailers have been ranked among the 100 private UK companies with the fastest growing profits.
The Car People, the car supermarket group based in Yorkshire, ranked 65th in the Sunday Times Profit Track 100 with 58.59% annual growth in profit to £3.1m in 2007/08.
Preston Audi, which has dealerships in Preston, Blackburn and Carlisle, ranked 81st with 54.11% growth to £3.1m profit in the same year.

DATED: 25.04.09

FEED: AM

General Motors wants potential investors in a split-off of its European business to give a firm indication of interest within three weeks.
The US carmaker is prepared to make no financial gain while parting with a controlling stake in Opel/Vauxhall providing the buyers invest directly into the new company formed from the European operations.
The Financial Times reported that GM has been talking to more than six financial and industrial groups about acquiring a stake.
The newspaper said GM could retain a minority stake but might still remain the new company's largest single shareholder.

DATED: 25.04.09

FEED: AM

The motor industry laid out its wish list today for the 2009 Budget, which takes place on Wednesday.
The SMMT reiterated its call for the introduction of a scrappage scheme to be introduced, giving £2,000 to buyers who scrap cars nine years and older to replace them with new cars.
It also called on the Chancellor to:
• Remove or delay the planned 2010/2011 introduction of a first year rate of tax on new cars
• Defer the new CO2-based business car capital allowance regime to 2010/11
• Delay the introduction of the new standard Benefit-In-Kind (BIK) tax regime for the use of demonstrator and stock-in-trade cars
• Remove the 3 per cent diesel car penalty in the company car BIK calculation
• Encourage enhanced vehicle replacement in government departments and agencies in 2009 and 2010

DATED: 20.04.09

FEED: TM

British Car Auctions (BCA) has called for a stimulus to the car credit market in the Budget on Wednesday to boost new and used car sales.
"In terms of expected budget content affecting the motor industry, there appear to be mixed messages on the adoption of a scrappage scheme.
BCA said it expected little movement on fuel tax and the road fund licence given the content of the pre-Budget report.
"We would argue that some kind of stimulus for the car credit markets is actually more important - so those that can sensibly afford to finance a new or used car purchase can do just that - particularly at a time when prices have rarely been keener.
BCA said potential deals are faltering at the loan stage because motorists are finding it difficult to get a suitable and affordable loan.
"When these are instances involving car buyers with perfectly good credit ratings and the wherewithal to manage a loan sensibly, the motor industry is obviously losing potential business through no real fault of its own.
BCA said it was encouraged that the used car and van markets have performed well this year and demand remains "much stronger" than it was for most of 2008.
But it warned: "Despite the recovery in prices, we believe there is more fragility in the market than we have previously seen and the last thing we need now is to see the market stalling.
"This week's Budget is therefore crucial - and stimulus is required right across the vehicle markets.
"Supporting new car sales is vital, but it is equally important that the used car sector is helped as well. Used cars are a major part of the motor retail sector's business and, therefore, a major contributor to the UK economy."

DATED: 20.04.09

FEED: TM

Almost 30 potential buyers of up-for sale Saab have emerged including car manufacturers as well as investment companies from all continents, according to the Swedish vehicle manufacturer. There are as many as 27 potential buyers, according to a Saab spokesman. The parties will visit Saab's headquarters in the coming weeks to look at its business plan and new models, he said. Saab will be in consultation with parent company General Motors and Deutsche Bank AG to evaluate the buyers and narrow down the list to find the most suitable candidate, which has to be 'strong financially with a long-term focus,' said the spokesman. Chief executive officer Jan-Aake Jonsson has said the carmaker intends to focus on four new models in the next 18 months that emphasise engineering and safety and promote the company's turbo-charged engines. Saab sought protection from creditors in February after General Motors said it would sever ties with the division by the start of next year at the latest. The Swedish company aims to secure about $1 billion in financing from the European Investment Bank and GM to help it reach positive cash flow by 2011. Saab creditors agreed earlier this month to extend the company's reorganisation to May 20, giving it three months to restructure after the bankruptcy filing.

DATED: 20.04.09

FEED: AW

Kurt Kroeger is a happy man - his business has gone from bust to boom in the space of a few months, thanks, he says, to Germany's scrappage scheme. "Our sales are up 100% on last year," he says, showing me around his gleaming showroom on the edge of Hamburg. "When scrappage was first introduced, we had hordes of people here. We had to work round the clock. The customers were served coffee and cakes to calm them down, while they waited for a free salesman." Downstairs, Mr Kroeger shows me a garage with about 20 cars in it - all being picked up by satisfied customers today. His experience is not unique. In the first three months of this year, Volkswagen reported a recession-busting 36% increase in new car registrations. Opel claimed a 50% increase in orders in the first quarter of 2009 compared with the previous year. 'Old banger bonus' And Germany's scrappage scheme is clearly responsible. Called the "Environment Bonus" by the government and the "Old Banger Bonus" by everyone else, it's seductively simple - anyone with a car that is at least nine years old can apply for the scheme. The car is scrapped, and they receive 2,500 euros off the price of a brand-new one. Earlier this month, the German government extended the scheme until the end of the year, raising the budget for it from 1.5bn to 5bn euros. And yet, ever since, there's been a rising tide of criticism. "Since it's been introduced, people are buying cars like mad," says Joerg Maltzen, a journalist at Bild-Auto, Europe's biggest-selling car magazine. "But it's just a temporary effect. The people who are buying the cars now will not buy next year - so we're all expecting a sharp slump in 2010." "Also, it's mainly small cars in the lower price segment that are selling. BMW, Mercedes and Audi are profiting very little." Economists and even government backbench MPs have complained about this, arguing that the scheme is actually benefitting foreign carmakers. Others say it's just diverting money from other sectors of the economy - leaving them short-changed. One of the highest-profile critics is Justus Haucap, head of Germany's monopoly commission. "The economic benefit is miniscule compared to the cost that it brings. The money could have been spent much more wisely on other things, such as infrastructure and education," he says. "It's a waste of money, and I think it's actually pre-election politics," he adds. "If we hadn't had an election this year, I'm very doubtful the scheme would have got going." Multiple complaints Another critic of the scheme is Dietmar Lensch, who runs a huge scrap-yard in Hamburg. There's a huge pile of crushed cars and a vast concrete yard with many more awaiting the same fate. "Look at this one," he says, opening a car door. "It's got just 20,000 kilometres on the clock. That's crazy." Mr Lensch has multiple complaints. Under the scheme, he has to crush the cars - he can't sell them. So his supply of used cars to sell has run dry. He can salvage spare parts from them. But his stores are now overflowing with engines, wing-mirrors and bumpers that no-one wants to buy. Oh, and the price of scrap metal has collapsed. "In the last three months, we crushed 900 cars. In the whole of last year we crushed 1,000. Look at this Mercedes - we must crush it!" A colleague says four scrap dealers who tried to re-sell cars traded in for scrappage are being held by the police, who mount strict inspections. But a short drive away, back at the showroom, Mr Kroeger has just presented a satisfied customer with a bouquet of flowers. "We do this for all of them," he says. Ewelin Hassenberg has just traded in her 20-year-old Volkswagen for scrappage, replacing it with a Chevrolet Aveo - made in Poland. "I would not have done it without this scheme," she says. So, is it a good scheme? "Well, for me, yes. But I'm not sure whether it makes sense for people to do it with 10-year old cars. That's just not sensible."

DATED: 20.004.09

FEED: AW

'Government backing will be crucial for the growth of the electric car market in the UK over the next few years, but more immediate measures to help the industry such as the introduction of a vehicle scrappage scheme are required to boost new car sales in the current economic downturn,' said Sue Robinson, Director of the Retail Motor Industry Federation (RMIF), representing 8,000 retail motor sector businesses that sell new and used cars, commenting the announcement of an electric car strategy yesterday (Thursday 16 April 2009). The Government's £250 million strategy to support the growth of the electric car market, and the necessary infrastructure to support it, includes an incentive scheme that will offer motorists £5,000 to buy electric or plug-in hybrid cars. The plan is expected to be activated in 2011. Robinson continues: 'This scheme could help the UK build the infrastructure and market for electric cars, but in the short term the industry needs more direct support. With consumer confidence low, the adoption of a car scrappage scheme would give a boost to the new car market, and enable motorists to trade in their old cars for new, less polluting vehicles. Consumers will look to new cars again, given the right impetus, and the RMIF is continuing to lobby for the introduction of a scrappage scheme could help revive car sales, and remove high-polluting cars from the road at the same time. This scheme is widely supported by car retailers.'

DATED: 20.04.09

FEED: AW