Friday, May 22, 2009
Finance companies reclaim illegal vehicles
The Association of Chief Police Officers said that last year officers seized a record 170,000 uninsured vehicles. But it warned the number driven without cover is increasing.
Seizures are made under the Vehicle Recovery Scheme, a partnership between the Finance and Leasing Association (FLA) and the police. Police seizing a vehicle check whether an FLA member has an interest as the legal owner.
The finance company will be asked to take possession if the finance customer as registered keeper does not collect it, repay all charges owed and ensure it is road legal. Driving without insurance nullifies car finance contracts.
FLA head of motor finance Paul Harrison said: “We estimate our partnership with the police could lead to more than 20,000 illegal vehicles being taken off the road.”
Father locked up in car tax blunder
A father of two was locked in a police cell for three hours after DVLA staff mistakenly thought he had a fake MoT certificate.
Michael Cook is now seeking legal advice following the fiasco on May 5 at a DVLA office in Gosforth, reports the Daily Mail.
Staff called police after Mr Cook went into the office to tax his car.
They became curious because his new certificate was a different shade of green to his old one and thought it could be a fake.
His certificate was later found to be genuine and a tax disc issued, however this was not before police had taken mouth swabs, his fingerprints and mugshot.
Mr Cook said it was a disgrace his details will also be kept on the DNA database for six years.
DATED: 22.05.09
FEED: AM
New models set to bolster H R Owen
New models in H R Owen franchises later this year will bolster margin performance, but new car sales remain significantly lower than last year.
Chairman J P MacArthur said that the group’s expertise in the new vehicle export market for certain brands had meant strong revenues from the Middle East and Africa, particularly thanks to the beneficial currency position.
Its used car business was strong in the first four months, said MacArthur, but the market is now suffering from a shortage of high-quality used car product, with values significantly increasing for most of H R Owen’s brands.
Meanwhile, commission earned from finance for new and used car sales is much lower than in previous years, as credit and margins continue to be tight.
MacArthur said H R Owen’s aftersales business is proving strong due to additional capacity provided as a result of the reogranisation of eleven service franchises in London, which included new facilities opened for Ferrari and Maserati last year.
He also announced his retirement as chairman of H R Owen. Ramon Pajares, senior independent director, will hold the position until a new chairman is appointed to the role.
DATED: 22.05.09
FEED: AM
Mandelson warning over Vauxhall
Business Secretary Lord Mandelson has told the BBC that there will be "painful change" resulting from the takeover of GM Europe.
This, he said, would be inevitable whichever of the three bidders for the European arm of General Motors, which owns Vauxhall, takes over.
"Whoever comes out as the successful bidder will cut costs and consolidate," he said.
He also said he was working hard to secure the future of Vauxhall's plants.
"We have to ensure that productive plants, where the greatest percentage of sales take place and which include UK Vauxhall plants, have a secure future," he said.
"That is what I working for."
Car scrappage
Lord Mandelson also rejected criticism that the UK car scrappage scheme, introduced on Monday, was helping overseas car manufacturers since so many cars sold in the UK are imported.
He said that many cars sold in Europe, where similar schemes have been introduced, have British components.
"We are all helping each other," he argued.
He also rejected the suggestion that the UK scheme is being used primarily by rich car owners.
The scrappage scheme offers motorists £2,000 to trade in a car that is more than 10 years old for a new one.
Bidding war
Three suitors have submitted bids to buy a stake in GM Europe.
General Motors did not name the three companies but Italian carmaker Fiat and Canadian parts maker Magna have declared their interest.
US investment firm RHJ International is also widely reported to be in the running.
Vauxhall employs 5,000 workers in the UK at two plants, one in Ellesmere Port in Merseyside, which produces cars, and another at Luton, which produces vans.
GM Europe had admitted that it needs £3bn and could face a cash crisis by the end of June.
The deadline for bids for GM's European business closed at midnight.
Glass's helps dealers maximise income from scrappage trade-ins
Franchised car dealers can maximise income from older vehicles traded-in under the Government's Scrappage Scheme, thanks to a new partnership between Glass's and Elite Incident Management.
The two companies have launched a new system based on Glass's well-proven eSalvage online auction application, allowing dealers to invite online bids for scrappage vehicles from a nationwide network of accredited salvage traders.
Elite Incident Management - part of the Elite group of companies and provider of end-to-end accident management services - has adapted the Glass's eSalvage web-based application, which is already used by leading motor insurers to market total loss vehicles to the salvage industry. As a result, franchised dealers using eSalvage will get immediate access to an established network of salvage agents ready and willing to bid for salvage lots.
eSalvage has been developed to ensure speedy marketing and removal of scrappage part-exchanges, with little input required from the dealer. Vehicles will remain at the dealership for no more than a few days once a sale has been concluded.
Dealers can access eSalvage through the website, www.gvss.co.uk.
"The eSalvage platform lends itself particularly well to the new scrappage scheme, offering a one-stop-shop which handles all vehicles - irrespective of type or condition," explains Richard Gandy, Commercial Manager of Bodyshop and Insurance at Glass's.
"Dealers have more opportunities to achieve the best prices from genuine buyers for their vehicle lots. The alternative is for them to use a local scrap dealer or the salvage agencies suggested by the manufacturers, inevitably limiting the potential to secure a higher sale price."
Philip DaSilva, CEO at Elite Incident Management, adds, "Not only will this new solution help dealers maximise income from the increasing volumes of older part-exchanges, it also means greater volumes of usable parts will now be salvaged."
All vehicles with an estimated private sale value of around £1,000 or more will be entered on to eSalvage, certified as 'Category B' write-offs. Once a bid has been accepted by the franchised dealer, Elite will arrange for collection of the vehicle within three working days. At the time of collection the salvage dealer will pay the agreed bid price in full and issue a Certificate of Destruction (V860), enabling the dealer to complete a claims submission to the manufacturer without delay.
Glass's confirms that all of the salvage agents registered as eSalvage users are already fully compliant with the Environmental Agency regulations that are specified under the new scrappage scheme rules.
To use eSalvage, franchised dealers will pay a flat rate of £20 (plus VAT) per vehicle. Once registered, they will also receive a free copy of the monthly Glass's Guide to Older Car Values.
Further information about eSalvage is available online at www.gvss.co.uk.
Rolls-Royce cars creates 150 jobs
Rolls-Royce Motor Cars has created 150 new manufacturing jobs at its factory in Goodwood, West Sussex, raising the total workforce to 900.
Rolls-Royce is expanding because more workers are needed to produce the Ghost, its latest model.
In contrast, luxury carmakers Bentley and Aston Martin have been scaling back production during the recession.
Formula One team McLaren shares Rolls-Royce's optimism, though, and is planning to produce a sports car.
"This is good news for the British car industry at a time when it is struggling," said Rolls-Royce chief Tom Purves, who has himself responded to the economic crisis in recent months, laying off 40 temporary workers and temporarily closing the factory.
"Britain has an exceptional talent for automotive production," Mr Purves added, insisting he would "fill all positions within the next few months... drawing on the considerable pool of highly skilled automotive industry personnel available in the UK".
New assembly line
The Rolls-Royce recruitment drive will boost the BMW-subsidiary's manufacturing workforce by 50%, to about 450 workers.
In total, by the end of this year some 900 people will work for Rolls-Royce, a near doubling of its overall workforce in two years.
"Our new model, the Ghost, has enjoyed an extremely positive international response and we now need to put people in place to bring the car to market," said Mr Purves.
Many of the new recruits will man a new assembly line, built to facilitate the production of the Ghost. Others will be skilled artisans who will be employed in the wood and leather areas of the factory, or in the paint shop.
"I am delighted that Rolls-Royce, an iconic British company, is providing new, highly skilled manufacturing jobs despite the economic downturn," said Lord Mandelson, the business secretary.
Production of the Ghost will start during the autumn and the car will go on sale early next year.
Thursday, May 21, 2009
Dyson leaves Lookers
David Dyson, finance director at Lookers, is leaving the business for personal reasons.
The board today announced that Robin Gregson will take up the role, while Dyson acts in a consultancy role during a handover period.
Dyson had been with Lookers for 17 years.
Gregson was previously group finance director of CD Bramall between 1998 to 2004.
Ken Surgenor, chief executive, said: "I would like to thank David Dyson for his contribution to the company's development over the last 17 years.
"The board identified Robin Gregson as uniquely well qualified to lead our finance function given his experience of the motor sector and expertise in arranging financing structures.
"Robin will complement the existing board and will work closely with me and my fellow directors to further develop the business."
DATED: 21.05.09
FEED: AM
Carmakers end scrappage dispute
The dispute between carmakers and the government over the UK car scrappage scheme has now been resolved.
Ford and Honda had delayed the start of their involvement on Monday. Both had expressed concerns about VAT arrangements and tax liabilities.
But after talks with the government, they now have confirmed that they both will take part in the scheme.
Cars that are more than 10 years old can be scrapped in return for a £2,000 discount on a new model.
"The scrappage incentive scheme has the full support of the UK motor industry who will continue to work with government to ensure the scheme's success," said Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders.
'Full weight'
Honda confirmed in a statement it would now join the scheme "following discussions between industry and government yesterday and clarification on the finer detail".
Ford, who sold more cars than any other manufacturer in the UK in 2008, also said it will now participate.
Latest SMMT figures show that Ford accounts for almost 17.5% of all cars sold in the UK so far this year, giving it the biggest market share.
"Ford is putting its full weight behind the UK vehicle scrappage scheme, which will not only boost sales but will also bring positive employment and environmental benefits too," said Nigel Sharp, Ford's managing director for Great Britain.
Ford said it has already had 3,000 extra orders from first-time customers for new cars as a result of the scheme.
Carmakers delay car scheme start
Ford and Honda have delayed the start of their involvement in the UK car scrappage scheme, saying there are a number of matters still to be resolved.
Ford has suspended deliveries of vehicles to dealers, while Honda has told its dealers not to register any cars under the scheme.
Both carmakers have expressed concerns about the VAT arrangements.
Cars that are more than 10 years old can now be scrapped in return for a £2,000 discount on a new model.
Both manufacturers have said they remain committed to the scheme, with Ford saying it was confident it could begin sales "within a few days".
'Seeking clarification'
Under the scheme, the government will subsidise £1,000 while the motor industry will provide at least a similar discount.
However, Honda says it is seeking clarity on the contribution from industry, as well as on a couple of other "administrative points".
A Honda spokesman said: "Relating to the £1,000 contribution - the original request was for a contribution of £1,000 from the industry.
"We were looking at splitting that between the manufacturer and our dealers but we're being told that we can't do that."
He added that they were being told that manufacturers alone would have to make up the payment, and Honda was challenging that.
A spokesman for Ford said: "Ford has been part of negotiations between the government and all vehicle manufacturers on the vehicle scrappage scheme announced in last month's Budget.
"Based on details which have only become apparent late in these negotiations, Ford is working to resolve some outstanding administrative issues."
The Society of Motor Manufacturers and Traders (SMMT) said it was seeking to clarify the exact tax position.
Ford sold more cars than any other manufacturer in the UK in 2008. Latest SMMT figures show that Ford accounts for almost 17.5% of all cars sold in the UK so far this year, giving it the biggest market share so far in 2009.
'Industry boost'
Business Secretary Lord Mandelson has said the £300m scheme will "provide a boost to the industry and kick-start sales".
But critics say it is not generous enough and does nothing to encourage the take-up of low emission cars.
New UK car sales were down 28.5% in the first four months of 2009 compared with the previous year.
Earlier this month, research by car price guide Parker's found that of 600 people questioned, 81% said they would not be taking advantage of the scrappage deal.
"There are so many good deals out there on pre-registered nearly-new stock that actually it's easier to find a car with a bigger discount under these pre-registered deals than it is under the scrappage scheme," said Kieran Puffett, editor of Parker's.
"An awful lot of people were putting off their car-buying decision until they heard about the scheme and having heard it it's not actually enough for them to really think about buying a brand new car.
"They will be looking at other alternatives. So in terms of shifting new cars it's not going to do as much as hoped."
However, the British Chambers of Commerce (BCC) welcomed the initiative.
"A scrappage scheme is exactly the sort of policy we need during a recession. It will boost demand and help the environment at the same time," said the BCC's director general David Frost.
'Flood of enquiries'
So far 38 manufacturers have signed up to the scheme.
Similar initiatives have already been tried in other countries. In Germany, for example, a scrappage scheme helped boost new car sales by 40% in March.
Lord Mandelson said that since the announcement of the scheme in the Budget there had been "a flood of enquiries from customers".
Meanwhile, motoring organisation the AA said it could pump as much as £2bn into the UK's car sector, adding that even if only 1% of motorists took it up, it would be over-subscribed.
The AA also carried out a poll of 15,000 members which found that the offer was most popular with pensioners, drivers aged 18 to 24 and those in semi-skilled and unskilled professions.
President of the AA Edmund King said: "In effect the £2,000 incentive can act as a deposit against loans for many less-well-off drivers."
He also said the scheme would "transform the chances of survival in a crash for thousands of car owners" whose current old cars offer substantially less protection than newer models.
But Friends of the Earth executive director Andy Atkins said the scrappage scheme was "a lost opportunity".
"A well-designed scheme could have played a limited role in cutting emissions from our roads," he said. "But, unlike some other countries, the UK scheme doesn't prevent motorists part-exchanging an old, small model for a brand-new gas guzzler."
LDV production resumes in July
Weststar agreed earlier this month to buy the vanmaker, which was poised to go into administration.
The government had intervened with a £5m bridging loan to save the company.
Weststar said it will continue to make vans and invest in research at the Birmingham plant and will also expand the scope of manufacture in Malaysia and other low cost manufacturing centres.
"In addition to production, Birmingham will remain the centre of engineering excellence, where designs for new low carbon emission original equipment manufacturer standard products and special vehicle option conversions will originate," it said.
"This strategy will see employment and value creation in the UK and Malaysia significantly increased over time."
Dato' Seri Syed Azman, managing director of Weststar LDV addressed LDV employees directly on the company blog.
"We appreciate that you have been awaiting confirmation of payment of wages following the announcement by the government.
"The process to release funds is now complex and has taken longer than expected to establish.
"It includes the approval by Weststar and I am now pleased to confirm that payments have been approved to reach you as early as possible next week.
"We would like to conclude by assuring you that the team at Weststar are committed to finalising this process as quickly as possible and in the best interests of you the employees."
Weststar runs Honda car dealerships in Malaysia and has sold LDV vans in south east Asia and the Middle East since 2007.
DATED: 21.05.09
FEED: MT
Vertu boss warns dealers to adapt to downturn
The warning was addressed to leading dealer finance managers at the recent Finance Conference co-hosted by Motor Trader and ASE, the business management specialist.
As the chief executive of Vertu Motors, a listed group which sold its first car on 27 March 2007 and now has a turnover of £750m, Robert Forrester had some sound advice on how to not just whether the storm but identify growth opportunities.
Having launched as an acquisitive group the business reviewed its business model last year to reflect the changing economic climate.
Forrester's team launched a four step programme which he said has placed the business on a sound footing. Areas addressed included cost reductions, a thorough review of the stock policy, a transformation of under-performing sites and encouraging momentum through people and processes.
"We're not at the bottom of this thing yet. You might see 25 per cent fewer customers so you need to sell 25 per cent more cars.
"There are still hundreds of thousands of people thinking of buying cars. I just want to make sure they buy from us," he said.
DATED: 21.05.09
FEED: MT
GM shares sink to new low
Shares in struggling vehicle manufacturer General Motors sunk to their lowest level in more than 70 years amid increasingly loud signals that the company is heading for bankruptcy protection within the next three weeks.
Shares fell by 20 per cent after senior GM executives sold stock worth $315,000 to leave shares trading at $1.15.
The White House has given GM until June 1 to restructure and win more financial aid. If the company fails to cut its debts and costs by the deadline, it will be forced to file for Chapter 11 bankruptcy.
GM's shareholders are in a lose-lose situation, according to analysts, because their investments would be all but wiped out regardless of whether the company goes bust.
VW in driving seat over Porsche merger
Volkswagen chairman Ferdinand Piech has signalled that the volume carmaker is in the driving seat of its proposed merger with Porsche.
The move came as Germany's financial watchdog launched another market manipulation probe against Porsche.
Mr Piech said it had been decided that the headquarters of the combined company - which he proposed to be named Auto Union after the carmaker created through the merger of several brands during the Great Depression - would be in Wolfsburg, where Volkswagen is based.
He has also indicated that he favoured Martin Winterkorn, chief executive of Volkswagen, as head of the new group, spurring fresh doubts about the future of Porsche's management team.
Mr Piech said it was unlikely that Wendelin Wiedeking, Porsche's chief executive, would be happy to stay on in a more 'lowly' role.
Porsche declined to comment.
Meanwhile, Bafin, the regulator, launched its second investigation in seven months after a German press report alleged that Porsche had informed Lower Saxony, Volkswagen's second largest stakeholder, in February 2008 about its intentions to lift its stake in the volume manufacturer to 75 per cent.
Kia Dealers get new Contract Hire offering
ALD will provide funding and a range of contract hire and personal contract leasing services to Kia's dealer network for small and medium sized businesses and retail customers.
All Kia dealers will have access to threesixty, ALD's online system, enabling them to obtain vehicle leasing quotes with and without maintenance across the model range on behalf of customers.
ALD has run a series of 12 half-day training seminars for Kia dealer-based employees on vehicle leasing and ALD's policies and procedures.
Andrew Sellars, Head of Fleet and Remarketing at
Kia Motors UK head of fleet and remarketing said: "The last year has seen Kia Motors UK invest significantly in the fleet market in terms of resources and training.
"This ground breaking relationship with ALD will enable us to provide a class leading service to our dealers and their customers, be they corporate or retail."
ALD sales director Mel Dawson said: "ALD won the Kia contract in a competitive tender due to our quality of service and flexibility.
"Kia has a growing presence in the UK market and the ability of their franchised dealer network to offer customers a vehicle leasing opportunity with budgeted monthly motoring costs will further increase sales."
Additionally, ALD will assist Kia with the remarketing of end-of-contract vehicles through the network.
DATED: 21.05.09
FEED: MT
Black Horse confirms new Finance Team
Black Horse managing director Chris Sutton said the new team has been appointed following a selection process carried out with former Bank of Scotland Dealer Finance managing director George Grant.
• Tim Smith will lead the combined motor sales teams in the north.
• Paul McGill becomes head of motor, south role.
• Mike Griffiths, who expands his current responsibilities for Black Horse fleet and major groups, with the Bank of Scotland Dealer Finance Wholesale and Strategic Accounts businesses moving under his wing.
• Paul Brotherton takes over the combined business support operation
• Simon Cotton, who expands his current responsibilities for Bank of Scotland Dealer Finance products to include products, marketing and pricing for the combined business.
Sutton said: "I firmly believe that the success of the new organisation depends on selecting the best people and processes from both sides of the business, to offer dealers an enhanced package of experience and industry knowledge.
"I am confident we have the best team in place to deliver positive results, which will ensure that we are here to support the motor industry for many years to come."
DATED: 21.05.09
FEED: MT
Black Horse confirms new Finance Team
Black Horse managing director Chris Sutton said the new team has been appointed following a selection process carried out with former Bank of Scotland Dealer Finance managing director George Grant.
• Tim Smith will lead the combined motor sales teams in the north.
• Paul McGill becomes head of motor, south role.
• Mike Griffiths, who expands his current responsibilities for Black Horse fleet and major groups, with the Bank of Scotland Dealer Finance Wholesale and Strategic Accounts businesses moving under his wing.
• Paul Brotherton takes over the combined business support operation
• Simon Cotton, who expands his current responsibilities for Bank of Scotland Dealer Finance products to include products, marketing and pricing for the combined business.
Sutton said: "I firmly believe that the success of the new organisation depends on selecting the best people and processes from both sides of the business, to offer dealers an enhanced package of experience and industry knowledge.
"I am confident we have the best team in place to deliver positive results, which will ensure that we are here to support the motor industry for many years to come."
DATED: 21.05.09
FEED: MT
Labels: Delayed Drafts
Wednesday, May 20, 2009
Dealers to Raise e500m to help
Representatives from Opel/Vauxhall's 4,000 dealers in Europe voted Friday to take a direct equity stake in the automaker, which has been put up for sale by owner General Motors.
Euroda, the European Opel/Vauxhall dealers association, approved a plan that could give it a 10 percent to 20 percent stake in the automaker and a seat on its supervisory board in return for the investment.
Euroda wants to raise the 500 million euros by having dealers contribute 150 euros from every car sale over the next three years.
Used car margin improvements boost Inchcape
International automotive distributor and dealer Inchcape has recorded 'strong' profitability in the first quarter of 2009 partly due to the better than expected performance of the UK market.
In a trading update for the first three months of the year delivered at the company's AGM, Inchcape said that while car markets around the world remained 'challenging', trading was ahead of internal expectations.
Nevertheless, total sales were 13 per cent down compared to the first quarter of last year and like-for-like sales were down 22 per cent. Unaudited pre-tax profit for the quarter was £20 million, down 69 per cent on what was a record first quarter last year but slightly better than previously expected.
But, the UK market, along with Singapore, performed better than predicted. In the UK, Inchcape said the benefit came from an improvement in used car margins. Aftersales business was also resilient.
Looking forward the statement concluded: "Although markets remain very difficult, the group delivered solid profitability in the first quarter of 2009, as the execution of our five operational priorities (growing market share and aftersales, while reducing costs, working capital and capital expenditure) continued to gain traction. Whilst this is an encouraging start, our expectations for the full year remain unchanged."
