Saturday, July 25, 2009
FLA steps up POS finance fightback
Automotive lenders are stepping up their efforts to win more point-of-sale business with the launch on August 1 of Specialist Automotive Finance Approved.
This will be awarded to dealerships whose entire staffs have successfully completed the Finance and Leasing Association’s free online competence test.
SAF Approved dealerships can display a plaque and use SAF material in showrooms and in local advertising to attract potential customers.
Amy Evans, FLA marketing and policy adviser, said: “Car buyers will become aware of the quality of the employees and we will rely on dealers to play their part in getting the message across.
“This autumn we will launch a directory on our consumer website so that people seeking finance can easily find dealerships where staff are reliable and knowledgeable.”
SAF, launched in 2007, has more than 6,200 people and 530 dealerships registered for its competence test.
Many of the top 20 dealer groups are committed to continue support and motor retailers now account for more than 50% of car finance.
The SAF competence test has been further developed in recent weeks.
Two websites,www.specialistautomotivefinance.org.uk (the industry site) andwww.FinancingYourCar.org.uk (for consumers) will be relaunched after being made easier to use.
The directory will be located on www.FinancingYourCar.org.uk and SAF test reference material to help prepare staff for the test is updated to reflect legislative changes.
The SAF test consists of 40 multiple choice questions and should not take more than 40 minutes to complete. It covers all products that can be offered in the showroom.
Access is via (www.SpecialistAutomotiveFinance.org.uk).
The test needs to be taken annually so dealership employees are aware of industry changes, and the FLA keeps a check.
DATED: 25.07.09
FEED: AM
Thursday, July 23, 2009
Trade associations respond to Block Exemption announcement
Plans to extend Block Exemption regulation for another three years has received a warm welcome from motor trade bodies.
The Society of Motor Manufacturers and Traders welcomed the European Commission's announcement which sets out the future legal framework for the sale of vehicles and aftersales services.
From 2013, new car sales and distribution will come under the general competition rules on vertical agreements.
The aftermarket will also be under the general rules, however the EC intends to apply these together with specific guidelines or a Block Exemption specific to the aftermarket.
Paul Everitt, SMMT chief executive said, “The Commission’s statement recognises the importance of a smooth transition of the current regulation and a welcome desire to find the optimum solution for the aftermarket.
“The Commission has recognised the high level of competition in the motor industry and this decision gives much needed reassurance and stability to the market during the current economic difficulties."
Sue Robinson, director of the Retail Motor Industry Federation said the decision enables the industry to continue to lobby for the continuation of a sector specific regulation.
Robinson said such an extension was one of the main subjects the RMIF discussed with the Commission and this positive move shows they listened to the RMIF.
She added: "We will be having further discussions with the commission on the implementation of any future regulation.
"We will be going through the report in detail over the next 24 hours and will be issuing a further statement when all details have been looked at."
John Lewis, chief executive of the British Vehicle Rental and Leasing Association, was pleased the EC had listened to their calls for a specific focus to improve competition in the after sales market.
He said: "It says it will ensure there are sector-specific provisions to prevent the use of agreements linking sales and aftersales services, which distort competition and curtail choice.
“The BVRLA will continue to fight to protect our members’ rights as the economic owner of their vehicles (so-called ‘end user’ status), which ensure they are not forced to provide commercially sensitive details to motor manufacturers.
“We will be formulating our formal response and responding to the EC proposals by 25 September.”
Dealers must hone skills to sell older ex-fleet cars
Dealers need to hone preparation skills to maximise profits on four year old ex-fleet cars that are starting to enter the used car market.
During the last 12 months, fleet leasing companies have reported widespread extensions of three year leases into four as employers sought to delay decisions on renewing company car lease agreements because of the recession – but these cars are now starting to be defleeted in increasing numbers.
Colin Bruder, managing director of motor industry consultancy Network Automotive, said: “It has been widely forecast that there will be a shortage of quality used cars in the second half of 2009 and already dealers are starting to suffer from a shortfall of good stock.
“At times like this, dealers often have to buy and sell whatever is available and four year old fleet cars are likely to be around in ever larger numbers as they finally make their way off fleets. These cars are older and have higher mileage than many dealers would ideally choose but they may simply have little option.”
Bruder said that ensuring that these vehicles were properly presented would be crucial to making a worthwhile profit and that extra effort should be rewarded.
He added: “To sell these cars successfully, dealers are going to ensure that a lot of effort goes into preparation – not just physically but by ensuring that the paperwork is watertight, that they are sold with a full MoT and service, and even perhaps by deciding that the warranty provided will be more comprehensive than usual.”
DATED: 23.07.09
FEED: AM
Database ends mystery of LCV economy and emissions
Uncertainty over the publication of fuel economy and CO2 emissions figures for LCVs has ended with the launch of an official online database.
The database, compiled by the Vehicle Certification Agency, the Society of Motor Manufacturers and Traders and the Department for Transport, contains average fuel economy and CO2 emissions figures for small, medium and large commercial vehicles under 3.5 tonnes, pick-ups and 4x4s.
Until 2008, there was no legal obligation for van manufacturers to produce either fuel economy or CO2 emissions figures.
After that date, both figures were required, but there was no obligation for manufacturers to publish them.
This left many van dealers in the dark about whether to reveal the figures to potential customers.
Debate on the subject had been ongoing, not least because fuel economy figures are produced on a rolling road with the vehicles empty, which means that a high roof van will have the same mpg figure as a low-roof one, whereas in real life the figure will be different.
The announcement comes after lobbying from the British Vehicle Rental and Leasing Association.
John Lewis, chief executive, said: “This long-awaited information will be immensely valuable to fleet operators, helping them to save on fuel costs and reduce their carbon footprint. It is a shame we have had to push so hard over the past 18 months to get it.”
The information can be viewed at www.vca.gov.uk/vandata
DATED: 23.07.09
FEED: AM
Mandelson to 'fight' for Vauxhall
Business Secretary Peter Mandelson has promised to "fight for every job" at Vauxhall's Ellesmere Port plant, as fears for the firm's future continued.
Vauxhall's US parent General Motors (GM) filed for bankruptcy earlier this year, and a buyer for the factory in Cheshire has yet to be confirmed.
Lord Mandelson toured the production line at the plant, where a 2,200-strong workforce is employed.
He told staff a decision on a buyer could be made "in the coming week".
Ellesmere Port has a contract to produce the new Vauxhall Astra model for the whole of Europe from September.
Lord Mandelson said the takeover race had been narrowed down to two parties, Canadian firm Magna International and Belgian investment group RHJ International.
Speaking at Ellesmere Port, Lord Mandleson said: "I want to end this uncertainty because we owe it to the workforce to tell them what their future is and to make sure it is secure.
"I am impatient for a solution."
"There are two main bidders... both have given a firm commitment to the future of Ellesmere Port.
"It not only has a glorious past but also has a prosperous future."
Government money has been pledged to secure the factory's future but, in return, a commitment from the eventual buyer is needed for the workers, said Lord Mandelson.
He added: "I need to know how many workers will be retained, what shifts they will get, and how long their employment can be guaranteed for."
Ellesmere Port employees dropped from a three-week to a two-week shift cycle earlier this year due to the economic climate.
The decision on the site's future will also affect 2,800 workers at Vauxhall's plant in Luton and staff at German sister company Opel.
The German government has also been called on to back a buyer, as most of GM's European factories are in that country.
One-time gain boosts Ford results
Ford, the only one of the "Big Three" US carmakers not to have gone bankrupt, has reported a quarterly profit of $2.3bn (£1.4bn).
However, the profit was largely due to one-off gains related to debt restructuring, with demand for new cars remaining weak.
Excluding the gain, Ford said it made an operating loss of $424m.
Ford boss Alan Mulally said the business environment was "extremely challenging" worldwide.
Despite the economic downturn, Ford said it gained market share in all the regions in which it sells cars when compared with the second quarter of 2008.
"While the business environment remained extremely challenging around the world, we made significant progress on our transformation plan," said Mr Mulally, Ford's chief executive.
"Our underlying business is growing progressively stronger as we introduce great new products that customers want and value, while continuing to aggressively restructure our business and strengthen our balance sheet."
The figures were better than analysts had expected and Ford shares were expected to climb when US markets open later.
The profit figure included a $3.4bn gain related to measures taken to restructure its debt obligations, Ford said.
Revenue declined $11bn to $27bn.
Although Ford has managed without a US government bail-out, it has not escaped unscathed from the financial crisis and economic downturn.
The company has cut tens of thousands of jobs and closed factories to reduce costs.
It is also considering the sale of its Swedish brand Volvo to raise cash, after already selling off its luxury European brands Jaguar and Aston Martin.
Car suppliers press EU over €3.2bn loan
Vehicle suppliers are pressing the European Union to back a €3 billion loan facility to prevent bankruptcies predicted after the continent's car manufacturing plants resume work in the autumn.
The industry is pressing Brussels to respond by Friday (July 24) to its request for a pan-European scheme that would guarantee suppliers' receiveables and speed up their payments for parts from carmakers, injecting liquidity into the sector.
Suppliers are pressing the EU for support in the hope of securing aid from the European Investment Bank or another European lending institution.
The industry is also talking to banks including Citigroup, which helped establish a similar US taxpayer-funded $5 billion facility approved by the Treasury in March, about setting up the scheme.
Suppliers face a drought in payments from September due to the long summer shutdowns planned by most motor manufacturers and the typical 90-day payment lag.
Clepa, the European auto suppliers' lobby group, estimates that more than 1,000 of Europe's approximate 5,000 auto supply companies are in immediate danger of bankruptcy, and that thousands more are distressed.
Porsche boss exits with 50m euros
German luxury car maker Porsche has said chief executive Wendelin Wiedeking and financial director Holger Haerter have resigned "with immediate effect".
Mr Wiedeking leaves with a 50m euros ($70m; £43m) payoff package.
Earlier this year, Mr Wiedeking failed in his attempt for Porsche to take over larger German rival Volkswagen (VW), despite building a 51% holding in VW.
Now the way is open for VW, Europe's biggest carmaker, to take over Porsche and add it to its brands.
The news comes as the boards of Porsche and VW hold separate meetings on the way forward.
'Reverse bid'
"The news that the Porsche chief executive is resigning is not really unexpected," Credit Suisse automotive analyst Arndt Ellinghorst told the BBC.
"He has... failed to take over Volkswagen, now Volkswagen is going for a reverse bid of the Porsche car business. I think ultimately this is going to be a good outcome."
Mr Ellinghorst pointed out that Porsche and VW have had close links since they were both founded by Ferdinand Porsche in the 1930s.
"The two companies will merge their operations and I think that this is key for their performance. We are seeing all over the world in the auto industry the need for consolidation."
And he said, despite the seeming diversity between Porsche and VW cars, that the two firms would be able to work together on platforms and components.
Earlier, Porsche said it would increase its capital by at least 5bn euros ($7.10bn; £4.3bn).
It said that this new sum would "create the foundation of building an integrated car manufacturing group with Porsche and Volkswagen".
Porsche's board also endorsed negotiations for the sale of a stake to Qatar to bolster its balance sheet.
'Strategic development'
The statements came after an all-night meeting on the future of the company. It follows a power battle between Mr Wiedeking and the head of VW's supervisory board, Ferdinand Piech.
Half of that money will go to a "social foundation". Meanwhile, Mr Haertner will get a payoff of 12.5m euros.
Mr Wiedeking will be replaced by Michael Macht, the management board member responsible for production, while personnel chief Thomas Edig will serve as his deputy.
"Wiedeking and Haerter came to the conclusion in the last week that the further strategic development of [parent firm] Porsche SE and Porsche AG would be better when they were no longer the responsible people on the board," the statement said.
Porsche would not say if the 5bn euros capital increase would come from Qatar.
Mr Wiedeking, 56, joined Porsche in 1983. He left in 1988, but returned to Porsche in 1991 and became chief executive in 1993.
In June, Porsche said demand for its cars had been hit by the worldwide recession.
Global sales at the German carmaker declined 28% to 53,635 vehicles between August 2008 and the end of April, compared with a year earlier.
Mr Wiedeking was credited with turning around the automaker in the 1990s, but it now has some 9bn euros in debt, following his attempts to acquire more shares in Volkswagen.
Wiedeking and Haerter leave Porsche
Wednesday, July 22, 2009
Block Exemption to be extended until 2013
The European Commission today revealed plans to extend the current Block Exemption regulation for the motor trade for three years.
Then from 2013, new car sales and distribution will come under the general competition rules on vertical agreements.
The aftermarket will also be under the general rules, however the EC intends to apply these together with specific guidelines or a Block Exemption specific to the aftermarket.
Competition Commissioner Neelie Kroes said: "It is important to give the automotive sector, one of the most important sectors in the EU, legal certainty and predictability as to the future competition law regime. This holds even more true in times of crisis.
"That is why I favour a new framework which will make it easier for market players to respond to rapidly changing market circumstances while better safeguarding consumer interests".
The EC has asked for feedback on its proposed policy options.
Details are at http://ec.europa.eu/comm/competition/sectors/motor_vehicles/news.html
Observations must be submitted by 25 September 2009 to Comp-car-sector@ec.europa.eu
Download the full communication from the EC here:ec.europa.eu/competition/sectors/motor_vehicles/documents/communication.pdf
DATED: 22.07.09
FEED: AM
Wayside buys Toyota group
Wayside Group has expanded through acquiring Hertfordshire group Andrew Rowley Toyota.
The purchase adds sites in St Albans and Watford to Wayside's existing business with Volkswagen, Audi, BMW and Mini.
Its dealerships are located throughout Hertfordshire, Bedfordshire, Buckinghamshire and Northamptonshire.
Managing director John Caney said “We are delighted to welcome Toyota to our portfolio as part of our continued growth strategy.
"The Wayside Group believes passionately in exceeding our customers’ expectations and it is our intention to extend this philosophy to our new venture with Toyota in Hertfordshire.”
Employing over 600 people, the Wayside Group last year added BMW and Mini to its Volkswagen and Audi portfolio.
DATED: 22.07.09
FEED: AM
US car dealer offers free rifle with every vehicle sold
A Missouri car dealer is combating the fall in US vehicle sales by offering a free assault rifle with every truck sold.
Boss of Max Motors Mark Muller, whose business slogan is “God, Guns, Guts, and American Pick-up Trucks,” said he had been overwhelmed by the response.
“It’s extremely successful. There is a lot of worry about crime, we have a methamphetamine problem around here and people just want to protect themselves.
“And what could be better than supporting American products in these trouble times?”
Muller, who only sells American vehicles, is offering a gift certificate - only to be used at a licensed dealer – for a Kalashnikov AK-47 worth $450 (£320).
DATED: 22.07.09
FEED: AM
'Difficult trading' blow for Fiat
Italian carmaker Fiat has said "an extremely difficult trading environment " contributed to a 179m euros ($254m; £155m) second-quarter loss.
The Turin-based firm said the loss was mainly due to a steep decline in sales from the same period last year.
But the firm, which has a 20% stake in US carmaker Chrysler, said the rest of the year should show an improvement.
Fiat sells cars under the Fiat, Lancia and the Alfa Romeo brands, and trucks, farm and construction equipment
'Depressed demand'
"Major strategic developments during the quarter include finalisation of the alliance with Chrysler and the signing of a framework agreement to form a 50/50 joint venture with GAC in China," it said.
Europe's sixth-largest car maker by sales also confirmed its targets for a 2009 trading profit over 1bn euros and end of year net debt below 5 billion.
It warned that the "the truck market and the construction equipment business will continue to suffer depressed demand", only seeing signs of recovery in the fourth quarter.
In June Fiat and Chrysler completed the strategic alliance to put Chrysler's good assets into a new firm controlled by Fiat chief executive Sergio Marchionne.
Fiat did not pay any money for its 20% of the new firm but is contributing technology to make smaller Chryslers.
Sports car firm sees more sales
A sports car manufacturer is increasing production by 10% and creating jobs in north Kent.
Surrey-based Caterham Cars said it had seen increased sales in the UK and abroad, which had led to the move.
Managing director Ansar Ali said sales appeared to stall in 2008. In response, the firm cut its 90-strong workforce by eight and also reduced production.
But demand now exceeded expectation and Caterham would add four posts to its 45-plus workforce in Dartford, he said.
The company would also be recruiting production staff, he added.
Job cuts, which included voluntary redundancies last year, were at the Dartford factory and at the firm's showrooms in Caterham and in Hinckley, Leicestershire.
Mr Ali said: "When we saw the first signs of sales activity stalling last year, we cut our cloth accordingly in terms of resource and costs.
"I've always worked on the basis that I'd rather face the problem of how to build more cars, than the problem of how to sell them, so it's gratifying to now be manning back up to cope with the extra demand."
Order book 'full'
He said the manufacturer's international sales had benefitted from favourable exchange rates, and also its quality of business partners in France, Italy, Japan and Germany.
Caterham's order book was full until mid-October, he added.
Mr Ali said 2009 production levels of its Seven sportscar would increase by about 10% to 420 units.
He said the classic two-seater Caterham Seven had achieved European Community Small Series Type Approval (ECSSTA), which had paved the way for "significant Continental expansion".
It now had "above-forecast" growth in the UK, mainland Europe, and further afield.
Earlier this year, the company launched the Caterham Roadsport 175 and the Caterham Superlight R300.
Monday, July 20, 2009
Fortunate Ford and Tough-Luck Tata
One of those moves was selling Jaguar and Land Rover to Tata Motors Ltd. before the global economic downturn started to smack automakers. The $2.3-billion deal for the two brands, which originally cost Ford $5.3 billion, was announced in March 2008 and completed in June.
By the time Tata took over JLR, Europe already had started a 13-month new-car sales slide, which finally ended last month.
The recession has been particularly tough on the makers of premium cars as they have seen little benefit from scrapping incentives. In the first half, JLR's European sales were down 39.1 percent to 41,907, according to the European automakers association, ACEA.
Declining sales have forced Tata to cut 2,000 JLR jobs. Last week the Indian automaker announced 300 more posts would be slashed along with production of the X-Type at JLR's plant in Halewood, north England. Last month, Tata executives said that JLR made an after-tax loss of 306 million pounds ($501.5 million) in the 10 months to the end of March. The decline pushed Tata Motors to its first loss in eight years.
Tata's tough luck is Ford's good fortune. Most of those JLR job cuts are happening in the U.K., where Ford has been the top-selling brand for 32 years. If Ford had to make those job and production cuts, it is likely that there would have been a backlash against the automaker in the U.K. A decline there would have made it tougher for Ford to keep churning out money in Europe, where the automaker reported a 2008 pretax profit of $1.06 billion, up from $997 million in 2007. Trouble in Europe would have made Ford's $14.6 billion net loss in 2008 even worse.
Would that have forced Ford into Chapter 11 like General Motors and Chrysler? Probably not, but it definitely would not have helped. Although Ford lost money when it d good bye to the British brands, selling them when it did has proved to be one of Ford's best moves in a long time.
Peter Vardy tops Vauxhall dealer league
The group also announced a 35 per cent increase in year-on-year sales.
Peter Vardy's Perth operation has also made it into the top 10, ranking an impressive sixth place.
The rankings cover the first six months of 2009, are awarded for overall performance of the dealerships across the UK, based on a number of criteria including, retail sales, parts sales and customer satisfaction. The judging also includes a mystery shop to grade a dealership's sales and aftersales performance.
"We are delighted with the success of the company after being in business for only three years," said chief executive, Peter Vardy said.
"The Vauxhall franchises have seen remarkable sales growth this year and our BMW and Mini dealerships have also performed extremely well despite some of the challenges that the industry is facing," he said.
FSA to get the chop under Tories
Shadow Chancellor George Osborne has outlined his plans for the future of Britain’s banks – and there’ll be no place for the FSA, at least not in its current form. The Tories want to overhaul the tripartite system – which, let’s face it, hasn’t covered itself in glory in the last 18 months – and put the Bank of England in charge of supervising the banking industry. Osborne also plans to ask the Office of Fair Trading and the Competition Commission to run a beady eye over Lloyds and RBS, possibly with a view to breaking them up. So there are going to be a lot of people considering their options between now and next year’s General Election…
If the Tories win said election, as the opinion polls suggest they will, the FSA will be the biggest casualty. Osborne reckons its failure to keep the banks in check during the boom years has proved it is unfit for purpose. So he intends to transfer its supervisory powers to the Bank of England: a new Financial Regulation division would be created at Threadneedle Street, headed by a new deputy governor and staffed with external members (like the Monetary Policy Committee) to police lenders. Meanwhile what’s left of the (considerably stripped-down) FSA will be re-branded as the Consumer Protection Agency, with responsibility for overseeing retail financial products.
Meanwhile Osborne also plans to get the OFT and co onto the UK’s state-owned banks – and if they decide their scale is bad for consumers, he might force a partial break-up, or sell the Treasury’s shares to new entrants. But he seems to have stepped back from his earlier threat to force the banks to spin off their investment banking divisions – possibly because it went down like a lead balloon in the City, and now’s a bad time for him to be alienating corporate support. But he does make the (not unreasonable) point that there’s no point doing this unless other countries do it too, or it will just hammer the City and drive banks overseas – so the Tories will press for a global consensus, but won’t act unilaterally (though banks with riskier balance sheets will probably have to hold extra capital).
As you can see, this puts the Tories on a collision course with some important people. Bank governor Mervyn King has said he doesn’t want this new beefed-up role (though that may have been a sop to the Chancellor). RBS and Lloyds will be instructing their lawyers to prove that they’re not really nasty competition-stifling behemoths, while their other big institutional shareholders will be fretting about forced sales. And then there’s the FSA, which has to spend the next year with the sword of Damocles hanging over its head – if the City thinks it’s unlikely to survive past the next election, who's going to listen to it in the meantime?
DATED: 20.07.09
FEED: MGT
Nissan to create hundreds of jobs
Nissan has announced that its Wearside factory will start producing batteries for electric cars, which is expected to create 350 new jobs.
Prime Minister Gordon Brown said that Nissan's £200m investment "was great news for the local economy".
The plant, near Sunderland, has beaten off competition from other Nissan factories in Europe for the investment.
The move could pave the way for the production of electric vehicles at the North East plant in the near future.
"Sunderland could now be a strong contender to produce electric vehicles for Nissan in Europe, and we will continue to work with Nissan to ensure this happens," the prime minister said.
Mr Brown visited the Sunderland factory along with Business Secretary Lord Mandelson.
The BBC's Fiona Trott said that it was not clear whether the deal secured the jobs of the 4,000 people employed at the existing Nissan plant. She said 1,200 jobs had been cut earlier this year.
'Low carbon area'
Mr Mandelson said a "low-carbon economic area" would be established in the North East.
As part of the project, 750 charging points would be installed across the region and a training centre specialising in the manufacture and maintenance of low-carbon vehicles would be set up.
Nissan's £200m investment will be spread over five years and the new plant, which will make lithium-ion batteries, will also create and secure additional jobs in the related supply chain.
Nissan also announced it was setting up another battery manufacturing plant in Portugal.
'Vote of confidence'
Michael Steventon, head of automotive research at consultants KPMG, said that the announcement was a vote of confidence in the Nissan workforce in Sunderland.
"Batteries are only part of a vehicle but they are an expensive, logistically significant part," he said.
"It does mean that Nissan is more likely to manufacture electric vehicles in the UK than elsewhere in Europe," he added.
However, he said that if the UK wanted to really capitalise on the move toward hybrid vehicles, more investment in research and development was needed.
Assistance
The government said it was working with Nissan on supporting the investment by offering grants and loan guarantees, including support through its Automotive Assistance Programme.
Earlier this year, the government set aside £2.3bn to support the UK's ailing car industry - but nothing has yet been paid out.
"The North East has distinguished itself as the first specialised region for ultra-low-carbon vehicles," Lord Mandelson said.
"This is good news not just for the North East, but for the whole of the UK, helping to attract foreign investment and securing UK's place as a global leader in hi-tech manufacturing and automotive industries," he added.
TUC general secretary Brendan Barber said: "This is an excellent initiative. It combines active industrial policy and environmental transformation, pointing the way to the kind of economy we will need to build after the recession."
The announcement from Nissan comes only days after its Japanese rival Toyota said it would start manufacturing the new Auris hybrid petrol-electric vehicle at its plant in Burnaston, Derbyshire from mid-2010.
'Question marks' over Opel bids
There are still lots of question marks surrounding the three bids for a majority stake in Opel, Germany's economy minister has said.
Karl-Theodor zu Guttenberg said that the bidders needed to take on more risk if any deal was to be agreed.
The German government is closely involved in talks between Opel's owner General Motors and the bidders, having pledged considerable financial support.
If a deal is not agreed, he said, Opel could ultimately face bankruptcy.
'Advanced' negotiations
"There are still lots of question marks. For example, the bidders have to ensure that the new Opel company can start with a strong capital base. Otherwise, the EU Commission will not accept the rescue," Mr zu Guttenberg said.
"If everything fails, what we do not want to happen - Opel's bankruptcy - cannot be ruled out ultimately," he added.
In May, the German government backed a bid from Canadian car parts maker Magna to take a stake in the troubled carmaker.
However, relations between Opel's owner, General Motors (GM), and Magna have soured in recent weeks, leaving the door open for two further bidders - Belgian private equity firm RHJ International and Chinese firm Beijing Automotive Industries.
Just last week, RHJ said it was in "advanced" negotiations with GM.
Magna wants control of some GM intellectual property rights, as well as distribution rights in Russia, something which the US carmaker is not willing to hand over.
Now it appears there are doubts in Germany about all three bids.
Job losses
GM has just emerged from bankruptcy protection after losing billions of dollars following a massive slump in sales due to the global economic downturn.
As part of its cost-cutting measures, the carmaker is selling GM Europe, which employs a total of 54,500 workers across Europe, with 25,000 based in Germany.
Under the Vauxhall brand, the firm employs 5,500 UK workers and has plants in Luton and Ellesmere Port.
There have been worries that UK workers will suffer sharp job losses as financial support for Opel from the German government safeguards German jobs.
Alan Day sells last site to Brayley Honda
Alan Day Group is no more following the sale of its last Honda site to Brayley Honda in Enfield for an undisclosed sum.
The acquisition of the site on Great Cambridge Road now joins Brayley’s other Honda dealerships in St Albans, Hemel Hempstead and Grays, in Essex.
Alan Day sold three of its Honda sites on the south coast to Hendy Group back in April and its Hendon, north London site to Crown Honda in February.
DATED: 20.07.09
FEED: AM
