The Retail Motor Industry Federation (RMIF) is buying the membership and field consultancy businesses of the Motor Vehicle Repairers Association (MVRA) from Capita Group.RMIF said the move will increase its membership and enhance the services it offers to members. It claimed up to 1,000 MVRA member businesses are set to join the RMIF.
RMIF chief executive Rob Foulston said: "This is a very exciting development for the RMIF, the MVRA and their respective members.
"For many years there have been multiple trade associations in the vehicle repair sector and no single voice.
Stronger voice
"This consolidation of our own Bodyshop Services Division and the MVRA will strengthen the voice and representation of the sector for the benefit of all participants.
Foulston added: "The RMIF offers its membership a wide range of member services, ranging from technical support to legal advice, but we are always trying to further develop what we offer and offer it at the most competitive rates.
"This acquisition enables us to expand our offering to all members, thereby providing even greater support and value for money."
DATED: 02.06.09
FEED: MT
# posted by Profit Training Ltd : 2:12 pm
Paul Philpott, the UK managing director of Kia, has been promoted to the position of chief operating officer of Kia Motors Europe.
He will be based at the brand's European headquarters in Frankfurt and will report to president Sun-Young Kim.
Philpott will fill the position vacated by Paul Willis who moved from the top job at VW in the UK to run Kia's European operations in January 2008 but quit several months later to head up VW in Ireland.
A UK replacement for Philpott is expected to be announced later this week.
Philpott joined Kia as managing director in February 2007 and has overseen the brand's growth in market share from 1.6 to 2.3 per cent. Kia is currently the seventh most valued franchise to hold in the latest
RMIF National Franchised Dealers Association Dealer Attitude survey.
Philpott takes up the position in August and will be responsible for all of Kia's pan-European operations including sales, marketing, and aftersales and will
manage relations with the company's manufacturing operations in Zilina,
Slovakia where the Cee'd and Sportage models are built.
"In the UK Paul has shown how to effectively turn around a business that was on the wrong track and his ability to motivate a dealer network to deliver an outstanding experience for Kia customers. He has achieved tremendous things in the UK," he said president Kim.
Philpott was previously commercial director of Toyota having previously spent several years with Ford.
DATED: 02.06.09
FEED: MT
# posted by Profit Training Ltd : 2:11 pm
The future shape of Vauxhall in the UK and the fate of its 5,000 employees remains in doubt following the sale of Vauxhall-parent GM Europe to Canadian car parts giant Magna International.Business Secretary Lord Mandelson, speaking on the BBC's The Politics Programme on Sunday, said he had spoken with senior executives of General Motors in Europe and they had reiterated their commitment to Vauxhall production continuing in the UK.
But he warned: "We've got now to pin down specific plans and specific implications for jobs," adding that Magna had been short on detail on its plans for the business and the implication for UK jobs.
Lord Mandelson said Magna's bid could threaten the production of the Renault Trafic in Luton.
Renault builds its Trafic van in Luton and the contract is set to run until 2012.
He told the BBC that Renault Nissan has a clause in its contract which would allow it to renegotiate or terminate the agreement with Luton, should the ownership of the plant change.
"These are among the many details and specifics of Magna's plans that we have to discuss with them and tie down," Lord Mandelson said.
"If they want British government to help underwrite this new company going forward, they are going to have to demonstrate what's in this new arrangement for Britain, for British production and British workers."
GM is to file for bankruptcy protection in what would rank as one of the biggest bankruptcies in US history.
DATED: 02.06.09
FEED: MT
# posted by Profit Training Ltd : 2:10 pm
Lookers has reported an audited 43 per cent decline in full year adjusted pre tax profits to £14m (£24.5m) on turnover of £1.78bn (£1.68bn).The company announced its unaudited results in April but since then it has signed new banking facilities with lenders for £210m which will mature in 2012.
As part of these new facilities Lookers is not paying a dividend as it moves to reduce its debt.
Trading in the first quarter ended March 31 was ahead of expectations, it said, and is also ahead of results the same time a year ago despite continued difficulties in the new car market.
During the year, as previously reported, the company rationalised its network by removing satellite operations and re-directing new car volumes back into main hubs to reduce costs and improve productivity
It also closed businesses, cut jobs and increased investment in its strong aftersales business.
Lookers' chief executive Ken Surgenor said: "We continue to believe that 2009 will be challenging for the new car market.
£12m cost savings
"However, our diversified business model and market-leading aftersales offering, coupled with the actions we have taken across our franchise operations and the anticipated realisation of £12m of cost savings in the current financial year mean that we are well placed to weather the uncertain economic environment, take advantage of any opportunities which may arise and emerge from this downturn as a stronger and more efficient business.
"As a result of our resilient performance against a difficult market backdrop I am pleased to announce today that we now have a sound financing structure in place for the medium term."
DATED: 02.06.09
FEED: MT
# posted by Profit Training Ltd : 2:10 pm
Production at Honda' Swindon plant restarted yesterday after a four month shutdown. The plant will operate at half its full capacity.
The manufacturer said production on its Civic and CR-V models, for the UK and export to European markets, had been restarted as a result of it successfully reducing stocking levels since the plant's temporary closure at the end of January.
The carmaker said it used the period to prepare the plant for the new Jazz which goes into production at the factory in the autumn.
It also installed new, faster and more efficient machinery has which it claimed will help to secure the long-term future of the plant.
"We'll only be working about 50 per cent of our full capacity," confirmed Honda director David Hodgetts.
"We have tried our best to protect jobs. There's been no compulsory redundancies at all at Honda, and that's the biggest objective we had throughout this period.
Workers at the plant agreed to a 3 per cent pay cut for the next 10 months with managers taking a 5 per cent drop. Around 1,300 staff took voluntary redundancy, reducing the number of workers to 3,400.
DATED: 02.06.09
FEED: MT
# posted by Profit Training Ltd : 2:09 pm
Euroda, GM's European dealer body, has renewed its offer of €500m for a shareholding in the troubled US giant's European operations following the setback in negotiations between GM, the German government and prospective buyers, when the carmaker asked for a further €300m.
"In light of the need for an additional €300m in financing that has just been estimated for Opel, the European association of around 4,000 dealers has renewed its offer for dealer shareholding in a future Opel/Vauxhall corporation," said Euroda chairman Jaap Timmer.
"As mid-sized dealers we're ready to play our part in saving Opel. That is why we're once again calling upon the federal government to take our offer of € 500m seriously. This is a historic chance for the automotive industry to let dealers and manufacturers work together to take entrepreneurial responsibility in shaping the future of Opel," he said.
Earlier this month Euroda told the German government and GM that members from 25 European countries would pay €150 per vehicle sold into an investment fund for a new Opel/Vauxhall company over a three-year time period. The association estimated this investment would reach a total of up to €500m.
Also with uncertainty surrounding the future of Vauxhall's two UK plants, in Ellesemere Port and Luton, under new ownership, EU industry ministers are meeting in Brussels today to discuss GM Europe.
The meeting was called by EU nations with GM plants concerned that the German government would protect German plants at the expense of other European operations.
Meanwhile Fiat, one of the two remaining bidders for GM's European business, has said it will not attend a meeting in Berlin at which a preferred bidder for GM Europe is to be chosen.
According to a BBC report the Italian carmaker accused the German government of being "unreasonable" in asking for extra funding from it.
DATED: 02.06.09
FEED: MT
# posted by Profit Training Ltd : 2:08 pm
GM Europe Secures Bridge Financing Commitment/Magna MOU
and Continues Normal Operations
· GM Europe not included in U.S. filing for court-supervised process
· GM Europe secures Memorandum Of Understanding (MOU) with Magna International Inc.
· Bridge financing package of €1.5 billion approved by German government
· GM Europe facilities operate as normal - employees and suppliers to be paid in the normal course of business
· Dealers, warranty and customer support operations unaffected by filing
Zurich. GM Europe today announced it continues normal operations and it is not included in the court-supervised process of General Motors Corp (NYSE: GM), its U.S. parent, with the commitment for bridge financing from the German government and an MOU to partner with Magna International Inc.
“This has been a very intense and at times difficult negotiation over the past several days,” said GM Europe President, Carl-Peter Forster. “We’re extremely grateful to the various members of the German Government, led by Chancellor Merkel and Vice Chancellor Steinmeier, the various German ministries as well as the federal state governments of Hesse, North Rhine-Westphalia, Rhineland-Palatinate and Thuringia, and the leadership of the U.S. Treasury for working so hard to reach this important agreement. The process for a future partnership in Adam Opel GmbH has moved a critical step forward with the MOU reached with Magna International, whose leadership has shown strong commitment to this project. With the financing, even with the GM actions in the U.S., we can now confidently say to our employees, customers, suppliers and dealers that it’s business as usual as we go through the process of creating a new, more independent Opel/Vauxhall.”
General Motors Europe has secured approval for a €1.5 billion bridge financing agreement with the German government based on the partnership with Magna, which will allow sufficient time to finalize the partnership agreement. With this available financing, the European operations are isolated from any financial impact by GM’s situation in the U.S.
Under the agreement, the Opel/Vauxhall group of assets have been pooled under Adam Opel GmbH, with the majority of the shares of Adam Opel GmbH being put into an independent trust (the balance to remain with General Motors), while final negotiations with Magna proceed.
The trustee agreement is structured to have no impact on the day-to-day activities of the European operations during the transition period and GM’s current European management team continues to run the operations. It is expected that the process to finalize a new partner will take several weeks to complete, although no firm timeframe has been established.
GM U.S. Files/GM Europe facilities operate as normal
In the U.S., GM Corporation today announced an agreement with the U.S. Treasury and the governments of Canada and Ontario to accelerate its reinvention and create a leaner, stronger “New GM” positioned for a profitable, self-sustaining and competitive future.
Under the agreement, GM’s strongest operations and brands around the world will form the New GM, which will be launched with substantially less debt and lower operating costs than GM historically has carried. The New GM will be a global leader in the areas of fuel efficiency and advanced green technologies; quality and reliability; appealing designs; customer service; and, above all, value.
The New GM will incorporate the terms of GM’s recent agreements with the United Auto Workers (UAW) and the Canadian Auto Workers (CAW) unions and will be led by GM’s current management team.
Under its plan, GM will sell substantially all of its global assets to the New GM. To implement the sale agreement, GM and three domestic subsidiaries have file voluntary petitions for relief under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York, and the sale is subject to the approval of the Court. Because GM’s sale of assets to the New GM already has the support of the U.S. Treasury, the UAW and a substantial portion of GM’s unsecured bondholders, GM expects the sale to be approved and consummated expeditiously.
None of GM’s operations outside of the U.S. are included in the U.S. court filings or court-supervised process, and these filings have no direct legal impact on GM’s plans and operations outside the U.S. GM confirmed that all business operations are continuing without interruption in its Europe; Latin America, Africa and Middle East; and Asia Pacific regions.
Forster today confirmed that the chapter 11 filing in U.S. would not impact the terms, conditions and existing arrangements for:
· GM Europe employees
· Suppliers to the European operations
· Customers with new cars on order or with warranties on GM vehicles
· Retirees and pensioners in GM Europe schemes
· Dealers in Europe
In order to provide information for all stakeholders, GM Europe has today launched a dedicated online resource about the U.S. court process and its implications for non-U.S. operations. The site can be accessed at: http://gmeuropefactsandfiction.com.
General Motors Corp. (NYSE: GM), one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 235,000 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's largest national market is the U.S., followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. In Europe, GM sells its vehicles in over 40 markets. It operates 10 vehicle-production and assembly facilities in seven countries and employs about 50,000 people.
More information on GM can be found at http://media.gmeurope.com and http://www.gmeurope.com. GM Europe executive blog at http://drivingconversations.com. To support informed discussion and fact-based reporting, GM and Opel & Vauxhall have launched a new website at http://gmeuropefactsandfiction.com.
DATED: 02.06.09
FEED: PTL
# posted by Profit Training Ltd : 1:59 pm
More than 35,000 new cars have been ordered through the UK's scrappage scheme since it was announced in April, government figures show.
It equates to one in five motorists who ordered new cars taking advantage of the £2,000 discount available for scrapping vehicles over 10 years old, reported BBC News.
Ministers believe those cars would not have been sold had it not been for the financial incentive.
Motor industry figures say it is too early to declare the scheme a success.
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, acknowledged that the scheme had enjoyed a "very encouraging" start.
Sue Robinson, director of the Retail Motor Industry Federation (RMIF), said: "The incentive scheme is helping the industry revive sales, while also helping consumers get into a new car. This is a double win.
"The RMIF is conducting a study of the impact of the scheme by surveying the reaction seen by dealers. The results of the survey will be published next week."
DATED: 01.06.09
FEED: AM
# posted by Profit Training Ltd : 2:08 pm
Vertu has posted a pre-tax profit of £72,000 for the year to end-February, against £140,000 for its preliminary results for the 16 months to end-February 2008, but said it had outperformed the UK car market.
The group is now raising £30 million to help invest in new dealerships and it said it was trading ahead of expectations. Vertu is also looking to purchase up the freeholds of existing leasehold sites.
Vertu saw an operating profit of £2.1m for the year ended February 2008 in comparison to an operating profit of £1.3m for the 16 month period to February 2007.
Robert Forrester, Vertu chief executive, said: “Despite challenging market conditions in the year the group has delivered a consistent level of operating profit on a pro-forma basis.
“We are pleased with our robust performance. Subsequent to the year end, trading has been ahead of the board’s expectations, with profits up year on year.
“While the market will remain challenging for the foreseeable future, the group is well positioned to take advantage of opportunities arising.”
Forrester believes that the current fragmented condition of the UK motor retail sector will allow Vertu to acquire “good businesses at low valuations”.
New car volumes fell 2.4% on a like-for-like basis and used retail volumes grew 10.5% on the same basis.
Revenue for the year was £760.8m, against £677.2m for the prior 14-month period.
DATED: 01.06.09
FEED: AM
# posted by Profit Training Ltd : 2:00 pm
SSANGYONG dealers have recived good news, after South Korean courts OK’d the firms’ restructuring.
