Thursday, August 06, 2009
BoE - Base rate stays at 0.5%
Bank of England Maintains Bank Rate at 0.5% and Increases Size of Asset Purchase Programme by £50 Billion to £175 Billion
DATED: 06.08.09
FEED: BoE
South Korea police storm car factory
South Korean police commandos have stormed a car factory south of Seoul, trying to evict hundreds of dismissed workers who have occupied it for weeks.
About 80 commandos fought through firebombs and projectiles, but stopped short of the paint shop which the laid-off workers have barricaded.
The workers are angry at Ssangyong motor company's plans to cut thousands of jobs to try to prevent bankruptcy.
At least 23 people were injured in the operation, South Korean media reported.
Several vehicles used by the workers as barricades were set alight in the clash, sending plumes of thick smoke into the air.
Several police and fire-fighting helicopters hovered overhead.
Fierce resistance
More than 500 workers are thought to be occupying the paint shop at the Ssangyong factory in Pyeongtaek, 70km (43 miles) south of Seoul.
The police commandos stopped short of trying to storm the paint shop after fierce resistance from the workers inside, who were armed with metal pipes, firebombs and projectiles launched by catapults.
The workers have occupied the plant since 21 May to protest against the massive layoffs.
The carmaker, South Korea's fifth largest, has been trying to reorganise since entering court-approved bankruptcy protection in February.
Ssangyong wants to cut about 2,600 workers - one-third of its workforce. More than 1,600 workers have accepted voluntary redundancy, but the other 1,000 are still fighting to keep their jobs.
Negotiations to end the occupation broke off on Sunday, with the union representing workers rejecting a management proposal to reduce the number of layoffs.
The union insists that no workers should be dismissed.
Dealer launch for used car economy labels
Dealers can now start labelling their used car stock with fuel economy labels ahead of the consumer launch for the new scheme in November.
Cars up to two years old will be covered by the scheme, though dealers can choose to label older stock back to March 1, 2001, if they wish. Private sales are not covered by the scheme.
The colour-coded Used Car Fuel Economy Label includes information on carbon dioxide emissions, estimated fuel cost over 12,000 miles and miles per gallon (when the car was new).
Dealer participation is free and used car dealers can sign-up and become familiar with the labelling process by visiting
http://www.vca.gov.uk/fcb/used-car-labelling.asp.
The used car label is a voluntary initiative developed by the Low Carbon Vehicle Partnership (LowCVP) with support from the Retail Motor Industry Federation (RMIF), the Society of Motor Manufacturers and Traders (SMMT) and the Government.
Its online database has been created and is being run by the Vehicle Certification Agency (VCA), with the full support of the Department for Transport.
Chris Brown, stakeholder relations manager for the LowCVP, said: “We’re aiming for a strong launch in November and hope as many dealers as possible will be on-board with the scheme by then.
“Over the past year car dealers and the VCA have noted increasing requests for information on the environmental performance of used cars. Dealers who display the used car label on their stock will be demonstrating their customer focus and commitment to industry best practice.”
Steve Latham, operations manager for RMIF says, “The RMIF supports the new ‘Used Car CO2 labelling’ programme as it better informs retail customers about used car running costs.
"Therefore the RMIF urges all used car dealers to sign up to this scheme.”
Paul Everitt, SMMT chief executive of the SMMT, said: "Consumer choice is vital to the reduction of road transport emissions. By extending the successful new car label scheme into the used car market, buyers will be able to accurately compare vehicles and make an informed decision at the point of sale."
DATED: 06.08.09
FEED: AM
Consumer confidence up in July
Consumer confidence edged up in July, driven in part by expectations of higher house prices and an end to the economic downturn, the Nationwide Building Society said in its monthly survey today.
Nationwide's headline consumer confidence index rose to 60 from an upwardly revised 59 in June after a small rise in consumers' optimism about the future outweighed falls in their confidence about the present situation and major spending.
The index is well above the level of 49 recorded in July last year and a series low of 44 in January, but significantly below the levels of over 90 which were typical before the impact of the credit crunch was felt in late 2007.
"Consumer confidence remained broadly stable in July, with limited overall change in sentiment from the previous month. The significance of this stability is that consumers appear to be remaining cautious, but not panicked by the economic climate," said Nationwide chief economist Martin Gahbauer.
"The most significant changes in consumer confidence this month are that confidence in spending has fallen and that for the first time for over a year, consumers expect the value of their homes to rise over the next six months," Nationwide added.
The proportion of respondents who expected Britain's economy to worsen over the next six months fell to 21 percent from 23 percent, though the percentage who expected a shortage of jobs at the same time rose to 60 percent from 54 percent
Moreover, the percentage who thought it a good time to buy a house or a car fell to 35 percent from 40 percent, the biggest drop in this measure for at least a year.
DATED: 06.08.09
FEED: AM
Jaguar Land Rover deal imminent?
Better relations between the Government and Tata have raised the prospect of a deal for Jaguar Land Rover this week.
An improvement in the Indian Motor company's credit rating has also helped the pair's 10-month-long negotiations potentially come to an end, reports BirminghamPost.net
Smoothing the path to an agreement are the fact ministers are said to be desperate to conclude the process.
Sources close to Tata also claim demands for a Government seat on the JLR board and a veto on redundancies were removed after the Treasury became more confident in the finances and strategy of the Indian conglomerate.
Also boosting the chances of a deal is the fact commercial banks heartened by Tata Motors' better than expected profits last week, are now expected to guarantee in full a £340m investment in JLR by the European Investment Bank.
These changes in the negiotiations could mean the only thing to do now is get the Government to agree a commercial loan of £175m for working capital.
This in turn would be backed by secondary commercial guarantees to ensure risks to taxpayers' money is all but eliminated.
Despite the advances, sources close to Tata are dampening speculation of an immediate end to the saga.
DATED: 06.08.09
FEED: AM
Isuzu expands dealer network
Isuzu has expanded its franchise in east Yorkshire with the appointment of Maple Garage in the village of Flinton.
The independent family-owned dealer started out as a motor vehicle repair operation in 1963 and also operates franchises for Vauxhall,Daihatsu and Perodua.
Phil Burton, dealer principal at Maple Garage, heads up a team of 22 employees at the Aldborough Road site.
DATED: 06.08.09
FEED: AM
Monday, August 03, 2009
Safety fears spark Honda recall
Japanese carmaker Honda has announced it is recalling 440,000 vehicles in the US due to an airbag defect.
One fatality and a number of injuries have been linked to the defect, Honda said. The carmaker had already recalled some models last November.
The recall includes some of the company's best-selling Accord and Civic models from 2001 and 2002.
The carmaker said it would contact customers and arrange for the airbag to be replaced free of charge.
Vauxhall workers sweat on their future
The future of Vauxhall/Opel is unlikely to be resolved at a key meeting today (Monday, August 3), according to sources close to the talks.
For Vauxhall's 5,000 UK workers it means that concerns about their jobs are set to continue longer than expected.
Members of the Opel Trust, which is backed by the German government, will meet with officials from parent company General Motors to discuss bids from RHJ International and Magna International for the up-for-sale companies.
However, it is believed that a decision on the successful bidder is unlikely to be made at the meeting because 'the process is just not far enough along from today's point of view'.
GM and the Trust are collecting views from stakeholders in GM Europe, including the UK Government.
Volkswagen forecasts 'zero growth' in car market
Volkswagen has warned that it could face flat sales in 2010 as it expected 'zero growth' in the car market.
The world's third largest carmaker behind Toyota and General Motors, is likely to be among motor manufacturers who suffer as state-sponsored scrappage scheme designed to increase new car sales run out next year.
While sales reductions in those markets - European countries and the US - are expected to be offset by rising demand in countries such as China and India, the net effect is expected to be 'zero growth'.
Nissan rolls out new electric car
Japanese carmaker Nissan has unveiled its first electric car, taking it closer to its aim to become the first car firm to mass produce the vehicles.
The zero-emission hatchback vehicle, called Leaf, is set to go on sale in Japan, the US and Europe next year.
Nissan chief executive Carlos Ghosn did not announce the prices but said it would be "very competitive".
"The monthly cost of the battery, plus the electric charge, will be less than the cost of gasoline," Mr Ghosn said.
Nissan, Japan's third largest carmaker, has been slower than rivals Toyota and Honda to embrace hybrids, which run on petrol and electric engines, and is instead pinning its hopes on solely battery-powered cars.
Electric cars have struggled to become mainstream because of limited battery life and high costs.
But Mr Ghosn insisted that the Leaf would not be a niche-market vehicle.
"We need to invest a lot of money to build the car plants and the battery plants at a moment where all the auto companies are saving investments," he said.
"But there is such a high potential that we (will) go ahead with it."
Nissan has chosen the UK as one of its bases to produce batteries for electric cars.
It is investing £200m at its Sunderland factory, which is expected to create 350 jobs.
Nissan has said that it plans to make 100,000 electric cars a year by 2012.
JCT600 buys Audi sites from Gilders
"We have wanted to work with Audi for some time" - John Tordoff
JCT600 has gained its first Audi franchises in York and Hull.
It has acquired the £30m turnover businesses, employing 80 staff, from Gilder Group.
Chief executive John Tordoff said: “We have wanted to work with Audi for some time as the brand has a great fit with our offering. In Hull Audi and York Audi we have been able to acquire two great dealerships with excellent reputations and quality staff in cities we already know very well.
“We have enjoyed a successful start to 2009, despite a tough year last year, and these acquisitions show our confidence and prove that as a business we have weathered the worst of the economic downturn."
York and Hull are the first Audi franchises within the JCT600 group, which now operates 44 dealerships throughout Yorkshire and the North East and employs over 1,300 people.
DATED: 03.08.09
FEED: AM
Car dealer found guilty of cheating the tax man
A second hand car dealer has been found guilty of avoiding to pay the tax man nearly £500,000.
Joseph Robinson, 61, of Chilworth Road, Chilworth, was found guilty of three counts of making false statements and a further charge of cheating the public revenue, reports ThisIsHampshire.net
Following the verdict at Southampton Crown Court, Judge Jeremy Burford QC said he would only grant Robinson bail if he raised £1m in security.
A series of phone calls were then made by barristers and court officials to arrange the £1m transfer from Robinson's off-shore account.
Initially £250,000 was suggested by Robinson's defence team but Judge Burford demanded more.
Robinson was later allowed bail until September when he will be sentenced and allowed to leave the country for a week in Tenerife, where he has a villa, to undertake work on the property.
The money would only be forfeited should he not return to be sentenced.
The court heard how the businessman ran his company under a series of different names while trading as Chilworth Cars.
Despite a turnover of around £1m Robinson failed to declare the extent of his profits in 2002-03 as well as failing to register for VAT.
The loss to Customs and Excise totalled £431,000 including interest.
Robinson was eventually caught after his accountant reported him to HM Revenue and Customs.
A search of his house by customs officers found documents showing he had around £3m in various accounts.
DATED: 03.08.09
FEED: AM
US puts more cash into its scrappage scheme as initial $1bn runs short
Huge demand has spent almost the total $1bn provided in the US scrappage scheme in its first month.
The US Government is now proposing to inject a further $2bn into the scheme.
It offers rebates of $3,500 or $4,500 to US motorists with old cars or trucks who trade them in for a new, more fuel efficient, vehicle.
DATED: 03.08.09
FEED: AM
Used car values continue to rise but growth is slowing
BCA’s Pulse report for June shows that average used car values are continuing to rise – but in smaller increments.
Average auction values rose for the eighth month running, reaching £5,850 compared to £5,773 in May.
Year-on-year values are now £735 or 14.3% ahead of June 2008. June 2009 performance against CAP is nearly eight points higher at 99.93% than at the same time in 2008.
BCA’s June sales found average values for fleet cars rose by £28 while average part-ex values climbed £45.
Nearly-new values improved by £1,690, but this was largely due to a spike in the volume of premium cars sold in this sector during the month.
Volume product performed strongly with a 2.3% value increase in June.
Their values have improved by £1,247 this year, equivalent to a 31% increase in six months.
Premium cars rose by almost half a percent, or £49, to £10,411 in June, while budget product fell by the same percentage, or £20, to £3,325.
With demand for affordable transport staying high, values have increased in the part-ex market for seven consecutive months
The average price improved by £45 to £2,405.
DATED: 03.08.09
FEED: AM
