Friday, September 04, 2009
Uncertainty Prevails for Vauxhall Britain
RHJ Holdings, the Belgian conglomerate, has raised its offer for the European businesses of General Motors, including Vauxhall in the UK.
New offer
It has increased its cash offer for GM Europe by Euro 25m to Euro 300m for a 50.1 per cent controlling stake.
RHJ has also reduced the amount of state aid it requires as part of its bid to buy the company from Euro 3.8bn to Euro 3.2bn and said it would deliver payback by 2013, a year earlier than previously proposed.
The Times reported that the GM board is split on what to do with GM in Europe.
Initial bids
Earlier this summer it received initial bids from RHJ and Magna International but two weeks ago it indicated that it was considering retaining the business. The GM board is to meet next week to discuss the issue.
The Financial Times reported that the Magna bid remains the preferred option for the German government, despite the new offer from RHJ, quoting Steffen Moritz, the German economy minister.
Berlin, it said, remains hostile to the RHJ bid because it believes the group lacks the industrial expertise and backing to run Opel.
Germany has already given Opel Euro 1.5bn in loans to keep it afloat.
It has a strong interest in Opel in an election year as it employs 25,000 people in Germany at four plants
DATED: 04.09.09
FEED: MT
Dealers urged to prep. for post scrappage market
Dealers have been urged to prepare for the end of the scrappage scheme, which some commentators predict could come as early as the end of October.
Network Automotive, the motor industry consultancy, warned the
artificial boost provided by the scheme, which rocketed new car registrations up 6 per cent in August, could leave some dealers unprepared for an unsubsidised new car market.
"The scrappage scheme has worked remarkably well, being responsible for more than 150,000 registrations. However, when the money runs out, there is likely to be a fall off in business, and dealers need to ensure that they are properly prepared at that point," said managing director Colin Bruder.
Back to basics
Bruder said dealers need to focus on CRM techniques and database management to remain competitive after the scheme ends.
"Sales people need to ensure that they are ready to sell cars without the £2,000 subsidy by returning to CRM techniques that are proven to maximise results, such as interrogating their database for customers that have owned their current vehicle for two or three years and may be thinking of changing their car.
"They also need to ensure that aftersales continues to be a important source of profitability by capturing servicing and maintenance work for all the vehicles that they have sold under the scrappage scheme. These customers could contribute to dealership profitability for many years into the future," he said.
DATED: 04.09.09
FEED: MT
Used car values continue to rise in August
Rise of 2.6 per cent
Its monthly Market Analysis for cars found that average values in August rose 2.6 per cent (£187 to £7,390) following a rise of 4.0 per cent (£277) in July. Used car prices are now 24 per cent higher than 12 months ago.
According to Manheim, the August rise is the seventh month-on-month increase in values since the beginning of the year.
Ex-fleet auction vehicle values rose 3.1 per cent (£201 to £6,681) while carmaker auction vehicles rose 1.2 per cent (£158 to £13,044). According to Manheim, the average value of dealer part-exchanges rose 8.9 per cent (£186 to £2,273).
Used car stock shortage
The rise in values has gone hand in hand with a shortage of good used stock in the trade, caused by lower new car sales and fewer part exchanges filtering through the system. Daily rental firms have also cut back stock.
Mike Pilkington, Managing Director,
Manheim Auctions & Remarketing managing director Mike Pilkington said: "Once again the market continues to rise, going from strength to strength throughout the summer months.
"This is one of the strongest August periods we have seen, but it does reflect the continuing high levels of activity reported across all our UK auction centres.
Pilkington added that conversion rates had fallen but demand remained "very strong".
DATED: 04.09.09
FEED: MT
Thursday, September 03, 2009
VW reportedly to drop Cayenne and Panamera
Volkswagen may ditch Porsche’s Cayenne and Panamera models, following its acquisition of the sports car company, according to rumours in the UK press.
The German parent company is understood to be planning to seriously alter Porsche’s product line to retain its sports car maker image.
Porsche traditionalists have long voiced concerns about diluting the brand by entering into other segment and VW too thinks this is detrimental in the long run.
Another reason could be that VW already has presence in both SUV and sedan segments either directly or through Audi; therefore it might not be ideal for Porsche to pursue these sectors.
It is understood that VW would wait until both products reach the end of their product life cycle before pulling the plug.
This is about seven years for the Panamera and earlier for the Cayenne.
DATED: 03.09.09
FEED: AM
GM Europe bidder increases offer
RHJ Holding, the Belgian conglomerate, has increased its offer by £22 million to €300m (£263m) to purchase General Motors’ Opel and Vauxhall operations.
The new bid means RHJ will take a 50.1% for a controlling stake in GM Europe and it has also reduced the amount of state aid it said it will need to take on the business from $3.8bn to $3.2bn, which it says it can repay by 2013.
The German government has reviewed the revised bid from RHJ and is still backing its preferred suitor, Magna , the Canadian car assembly and parts group.
Steffen Moritz, spokesman for Germany’s economy ministry, said: “The preference for Magna remains even after reviewing this new bid from RHJ.”
Magna has refused to comment on whether it will also be increasing its bid.
DATED: 03.09.09
FEED: AM
Audi Refreshes Logo
Audi has subtly refreshed its logo for the first time since 1990.
Audi says the logo has been given a more “imposing 3D treatment” and dealers are expected to adopt the version of the logo eventually to meet corporate identity standards.
A spokesman from Audi told AM: “We will not be expecting dealers to immediately jettison their existing fixtures and completely overhaul in one fell swoop."
Audi said there would be cost implications in updating the branding but could not disclose further details.
The new Audi 2009 logo:
The old Audi 1990 logo:
DATED: 03.09.09
FEED: AM
Wednesday, September 02, 2009
Tata seeks compensation over Nano
India's Tata group says it will hand back land where it planned to build the world's cheapest car - but only if the government gives it compensation.
Tata planned to build its Nano car in West Bengal state but moved production to Gujarat last year after protests over land earmarked for the plant.
Tata chief Ratan Tata told journalists in Calcutta he did not want to stand in the way of development in West Bengal.
He added: "We will obviously seek to be compensated for what we developed."
He did not say how much compensation he was seeking.
Mr Tata said his group had no projects lined up for Singur at the moment, but made it clear Tata was willing to give up the 998 acres of land it has there.
"We don't want to stand in the way of the industrial development of West Bengal," he said.
"We are hit by the economic downturn. If the state government has lined up something, we will hand over the land."
When asked whether he was aware that Indian railway minister Mamata Banerjee wanted a locomotive plant to be built at Singur, Mr Tata refused to comment.
Ms Banerjee - whose Trinamul Congress party fiercely opposed the Nano project - says the proposed locomotive plant would need 600 acres.
The remaining 400 acres would be handed back to peasants who are unwilling to part with their land.
Don't take risks to cut costs
Everyone is aware that the recession is taking its toll on personal finances and those still eager to buy a vehicle may be tempted to take risks in an attempt to save money. However, this could ultimately lead to a much bigger cost to be paid warns HPI. Latest research by HPI continues to confirm that 1 in 3 cars still has something to hide, and that the risk of buying a car that has outstanding finance against it, has been clocked or cloned is an increasing threat for today's car buyer.
Daniel Burgess, Automotive Director for HPI explains, "Even though the "1 in 3" statistic has not changed for a number of years now, we are definitely seeing a shift in the types of car fraud being used to dupe the unsuspecting buyer. Consumers still need to take simple precautions to protect themselves from buying a stolen, written-off or cloned vehicle. Used car prices for some types of vehicles have hit record lows and there are some great bargains to be had from legitimate sellers, but buyers should be wary of a deal that seems too good.
"We do urge buyers not to take a bargain at face value. They should conduct some simple checks to be sure of the facts, however, as the old saying goes, if a deal looks too good to be true it usually is."
Outstanding Finance
Outstanding finance is still a growing risk for used car buyers with 1 in 4 cars checked by HPI still subject to an outstanding finance agreement. The leading vehicle information provider is warning car buyers that if they unwittingly buy a car on outstanding finance, there is a very real chance that they will lose both the car and the money they paid for it, as the finance company still own the vehicle until the finance has been settled.
Changing Plates
1 in 5 cars checked by HPI customers have had at least one plate change, making it one of the most frequent 'hits' against all of the HPI registers. As many people are putting off changing their current car until the economy recovers, status conscious owners could well be disguising the true age of their vehicle with a personalised plate. However, buyers should be warned that many crooks also use plate changes to try to obscure a vehicle's true past. There are risks involved in plate changes. Thieves in a stolen car may seize plates from another car parked on the street whilst police continue to search for the stolen car under its original number plate. Consequently an efficient fraudster can sell the car on before the stolen plates are also reported. An HPI Check will match the vehicle registration number with the vehicle's chassis number - any mismatches may indicate something is amiss with the vehicle.
Clocking back the miles
After plate changes, buyers are most likely to encounter a car with a mileage that's going backwards. Despite digital odometers being commonplace in cars today, these are proving no deterrent against clocking. In fact, the number of vehicles being clocked is on the rise, with 8 out of every 100 cars checked against the National Mileage Register revealing mileage discrepancies in 2008 compared to 7 out of every 100 cars checked in 2007. Sellers may see the clocking of a vehicle as an easy way to make extra cash. Despite the efforts of Police and Trading Standards to clamp down on this practice, the fact remains that clocking is still a big issue for consumers.
Stolen to order?
Latest police figures suggest that over 450 vehicles are stolen every day**, many of which are then sold on to unsuspecting buyers. This highlights the importance of an HPI Check as a tool to ensure you're not one of those unsuspecting customers Another increasing problem is that many stolen vehicles are 'cloned' to disguise their identity so that they appear legitimate. HPI will investigate any stolen 'hits' with the police to verify the status of the vehicle. If this is confirmed as correct, customers are then advised to contact their local police force.
Increase in write-offs
It's easy to be taken in by shiny paintwork and a low price, but with 790,000 vehicles written-off in the last ten years by insurance companies***, and 4 in 100 vehicles checked by HPI recorded as 'written off', it is evident that the unscrupulous will do anything to make a quick profit.
"These statistics are a wake-up call for all used car buyers," concludes Daniel Burgess. "Our latest figures show there are a number of areas to be especially wary about, but an HPI Check can spell the difference between buying a banger or a bargain."
*Car buying cons cost drivers close on £90m - 25th March 2009 (www.motors.co.uk)
**Car Crime UK, Episode 2, ITV
*** Figure sourced from UK Car Body Repair Market report by Trend Tracker, June 2008
Monday, August 31, 2009
Will GM keep Opel ?
Six months after the “old” GM put Opel up for sale -- and three months after it agreed tentatively to sell the company to Magna International Inc. -- the “new” GM is rethinking the matter.
The German government wants GM to sell a controlling stake to Magna. It has offered to provide billions of euros in aid if GM approves Magna's bid, passing over a rival offer from Belgian-based RHJ International SA. But since GM declined recently to pick a winning bidder for Opel the Magna deal has been thrown into doubt.
“Keeping Opel makes the most sense,” said a person involved in the rescue talks. “Next best would be RHJ International followed by Magna. Nevertheless, if we follow the political wishes, the order could be exactly the opposite.”
The fortified GM that emerged from bankruptcy last month has several reasons for holding on to Opel.
1. A truly global company needs direct control of its operations in Europe, one of the world's three largest auto markets along with the United States and China.
2. Opel's technical center in Ruesselsheim, Germany, is the engineering axis for the Delta compact platform -- the basis for such upcoming cars as the Chevrolet Cruze and Orlando -- and the Epsilon mid-sized platform, underpinning for the new Buick Lacrosse and others.
3. The worst is over for Opel. The new Insignia mid-sized car is success. The compact Astra, which debuts at the Frankfurt auto show next month, looks great and promises a lot of technology at an affordable price.
4. The company's European dealer and distribution strategy needs complementary positioning of the Chevrolet and Opel brands. It doesn't want to turn them into direct competitors.
5. GM wants to keep control of Opel in Russia, a market with a huge long-term potential.
6. Intellectual property for all GM vehicles produced worldwide would remain under the company's strict jurisdiction.
7. Opel would have more freedom to decide how and where to make cost cuts. If another group gets Opel -- with support from German loan guarantees -- the restructuring options will be limited by union and political pressure.
Billions in state aid sought
Neither Magna nor RHJ are prepared to save Opel with its own money. Each company's plans call for a limited capital infusion and billions in German taxpayer money. Each would repay the public loans with Opel-generated cash. So why couldn't GM do the same: relaunch Opel with borrowed money and pay it back with Opel cash flow?
RHJ, a private equity firm with American roots, has offered 275 million euros ($393.4 million) for a 50.1 percent stake in Opel, with GM retaining 39.9 percent and 10 percent put aside for employees. RHJ is seeking about 3.8 billion euros ($5.4 billion) in state aid.
Magna and Russian partner Sberbank have been forced to increase the amount they have pledged for a 55 percent stake into Opel -- from 100 million euros ($143 million) to 300 million euros ($429 million). But they would still need 4.5 billion euros ($6.4 billion) in loan guarantees.
To keep Opel, GM has to come up with some serious money: more than $6 billion. To regain control of the 65 percent of Opel put in a trust on June 1, GM has to repay 1.5 billion euros ($2.1 billion) given by the German government to keep the company alive.
Then it needs at least a 3 billion euro ($4.3 billion) cash cushion to complete the company's turnaround.
Germany, which is trying to push GM into accepting the deal with Magna, probably won't want to offer big loan guarantees to GM. But after Germany's national elections on Sept. 27, the new government could have a different attitude.
There are five Opel plants in the country and two of them are at risk of closing. Some sort of compromise is probably foreseeable.
Following Ford's footsteps
Other financial help for GM could come from Belgium, the United Kingdom, Poland and Spain, countries where Opel has plants that would be threatened by a German-driven restructuring of Opel.
GM is not allowed to spend U.S. government bailout cash on overseas operations. So the rest of the funds needed to retain Opel could come from mortgages backed by some of its plants and trademarks -- in Europe and elsewhere.
That is what Ford Motor Co. CEO Alan Mulally did almost three years ago. The cash cushion allowed Ford to keep its independence during the credit crunch. For GM, it would not be easy to put together the money needed to regain control of Opel and relaunch the company. But it would be worth it.
Sunday, August 30, 2009
GM Europe braced for Insolvency if no firm bid
GM Europe, which owns Vauxhall/Opel, has sought professional insolvency advice to prepare for the possibility that it may not attract a firm buyer in time to rescue the company.
Vauxhall executives believe that if a firm offer for GM Europe is not made within days, the carmaker faces three scenarios, one of them bankruptcy.
Magna International and RHJ Holdings, which are rival bidders for GM Europe, are waiting for GM's board in Detroit to pick one of them and proceed with a sale.
However, it emerged earlier this week that GM Europe's parent company is divided over whether to sell the European business or keep it.
GM Europe executives believe that if neither offer is pursued; Magna and RHJ will alter their offers, extending the negotiating period, the American parent will keep the business, or GM Europe will become insolvent.
Meanwhile, it has also emerged that Fiat may seek to capitalise on the uncertainty surrounding future ownership of GM Europe buy launching a fresh push to buy Vauxhall/Opel. Fiat previously made a bid for GM Europe, but lost out on being on the final bidding shortlist.
Additionally, a future German government may be willing to finance a restructuring of Vauxhall/Opel under the ownership of GM. The government, which has agreed to provide €4.5 billion to fund the brands if a sale to Magna is completed, has all but given up on the deal happening before Germany's general election in four weeks.
Toyota pulls plug on US factory
Toyota is pulling out of a production plant in the US it jointly owns with General Motors (GM), the first time it has abandoned a factory.
The world's largest carmaker will stop production at the Fremont, California-based New United Motor Manufacturing plant in March 2010.
GM announced earlier this year that it would withdraw from the venture.
Toyota said: "Over the mid to long-term, it just would not be economically viable to continue production."
The firm will move production to its other plants in the US and in Japan.
'Sad day'
"This is most unfortunate and we deeply regret having to take this action," the carmaker said.
California Governor Arnold Schwarzenegger said: "Today is a sad day in the history of Fremont as California joins the ranks of states adversely affected by the worldwide collapse in demand for automobiles."
Earlier this week, Toyota announced plans to suspend production for more than a year at one of its plants in Japan - another first for the company.
It also confirmed it was considering suspending one of its production lines at Burnaston in Derbyshire in the UK, but said that no decision had been taken.
Toyota has reported operating losses for the past three quarters as recessions around the world have hit demand for its vehicles.
Mandelson commits taxes to save Vauxhall jobs
Lord Mandelson is offering £500 million in loans and loan guarentees to whichever bidder offers the most secure future for Vauxhall in Britain.
The news throws up another twist to the protracted negotiations over what will happen to General Motors’ European operations.
It emerged yesterday that GM’s US board is split down the middle over whether to retain Opel and Vauxhall. Half the board believe the European operation should now be kept as it could become a future competitor in the future. However, the other half believe GM should wash its hands of Vauxhall and Opel and just move on.
The Times said Lord Mandelson is insistent that the party that receives taxpayer funds will be the one that produces a business plan protecting most of Vauxhall’s 5,000 strong workforce for the long term.
While speculation is rife, GM has declined to comment officially on its intentions over a decision for GM Europe’s future.
GM delayed its decision to choose Magna or RHJ as the preferred bidder for GM Europe. A decision was expected on August 21. A decision is now expected to be made before the Frankfurt Motor Show on September 15.
The US Government will not offer more funds in addition to the £36 billion it has already given to lift GM out of bankruptcy protection. Some board members at GM are looking to secure funds to retain Vauxhall and Opel from other governments in Germany, Britain and Spain instead.
DATED: 30.08.09
FEED: AM
Toyota to suspend production line
Toyota is planning to suspend production for more than a year at one of its production lines in Japan.
It will be the first time it has made a long-term suspension at one of its domestic plants.
The closure at the plant in Aichi prefecture will reduce output by 220,000 vehicles.
Toyota also confirmed it is considering suspending one of its production lines at Burnaston in Derbyshire in the UK, but that no decision had been taken.
A Toyota spokesman told the BBC that moving from two production lines to one was one of many options being considered.
"We are always considering the best production structure, but nothing has been decided regarding one-line operations at the Burnaston plant," he said.
Only a month ago, Toyota announced plans to build the hybrid version of its Auris model at Burnaston, which would be its first European-built hybrid.
The Burnaston plant employs 4,100 workers, making models such as the Avensis and Auris.
Rival profits
Japanese media reports have suggested that Toyota is planning to cut its overall capacity by between 700,000 and one million vehicles a year.
One of the two lines at the Japanese plant will be closed from Spring 2010 until the second half of 2011.
Toyota has reported operating losses for the past three quarters as recessions around the world have hit demand for its vehicles.
In the three months from April to June, its rivals Honda and Nissan both reported profits as a result of cost-cutting.
Toyota was already running some of its plants below capacity and had imposed some short-term suspensions, but the Aichi plant will be its first long-term cut.
The company has a global capacity of about 10 million vehicles a year, but it only plans to produce 6.68 million vehicles this year.
SMMT proudly supports search for British automotive talent
The Society of Motor Manufacturers and Traders (SMMT) is backing this year's Autocar-Courland Next Generation Award seeking to attract young talent into the automotive industry.
Open to all higher education students, the competition aims to promote careers in the motor industry and showcase UK talent. Entrants must submit a written response to the question: Where do you think the next automotive industry revolution will start and what will it deliver?
Six finalists will be selected to go before a 'Dragon's Den' style judging panel to present their ideas to top industry executives including SMMT president and chairman, Ford of Britain, Joe Greenwell. Proposals may focus on technology, politics, production methods, financial incentives, or all of the above, as long it's within the scope of the automotive industry.
The winner of the award will be announced at SMMT's Annual Dinner, 24 November at the Park Lane Hilton, and will receive one month's work experience at each of the four partner companies (Ford, Harley Davidson, Honda and Marshall Motor Group) supporting the programme as well as a cash prize.
Entries can be made online at www.autocar.co.uk/next-generation and must be received by 23 October 2009.
Longbridge shutdown is considered
Managers at Birmingham's Longbridge plant are understood to be considering plans to shut down car production lines until early 2010, the BBC understands.
Production of a special version of the MGTF is due to end in weeks, BBC Midlands Today's Peter Plisner said.
MG Motor UK Ltd said "no final decision has been made regarding a temporary shutdown of our production facility".
It added: "If such a decision is taken we are likely to make a statement at that time confirming our intentions."
The company added that its Longbridge-based engineering/R&D facility continues to work on future MG products, which "are being specifically developed for the UK & Western European markets".
MG Rover collapsed in 2005 with the loss of 6,500 jobs.
In May 2007 its Chinese owners opened a new car production line at Longbridge as a ceremony marked the official reopening by Nanjing Automobile Corporation.
Shanghai Automotive has since taken over the Longbridge operation.
Vertu becomes first dealer group to gain finance professional accolade
The Finance and Leasing Association has granted SAF Approved status to a motor retailer for the first time.
Vertu Motors has been awarded SAF Approved status in recognition of its commitment to raising standards of knowledge on motor finance for the benefit of its customers.
Specialist Automotive Finance (SAF) was launched by the FLA to raise standards and improve knowledge in showrooms and increase customer confidence in finance.
More than 370 employees have passed the SAF test at Vertu Motors – which trades under the name of Bristol Street Motors – and 39 dealerships are SAF Approved.
To become SAF Approved all of a dealership’s staff who talk to customers about finance must have passed the online competence test. The test asks questions on the finance products available in showrooms and surrounding regulation.
For a dealer group to be SAF Approved, all individual outlets must first be SAF Approved. Records are audited by the FLA and any new dealerships acquired by a group have one month to register and pass the SAF test.
Paul Harrison, head of motor finance at the FLA, said: “I am delighted that one of the biggest car retailing groups in the UK has recognised the benefits of SAF Approved and I expect many others to follow suit.
Peter Stewart, director of business development for Vertu Motors, said the company has supported SAF since day one.
"We believe this will benefit our company, managers, sales executives and, most importantly, our customers through better information on finance.”
DATED: 30.08.09
FEED: AM
Uncertainty over GM sale of Opel
US carmaker General Motors could be set to reverse its decision to sell its struggling European car firm Opel, according to media reports.
Last week, the German government said it would lend Opel 4.5bn euros ($6.4bn; £3.9bn) if its favoured suitor, Magna, was chosen to take it over.
The bid from the Canadian car parts maker is backed by Russia's Sberbank.
But reports in the UK and US say GM is trying to raise rescue funds for Opel from the US and European governments.
At the weekend, GM postponed making a decision on who should buy the Opel division, which includes Vauxhall in the UK.
As well as Magna, Belgian financial group RHJ has also been a suitor of Opel.
However, Magna has publicly promised to cut fewer jobs in Germany, where 25,000 people are currently employed in the division.
The German government said GM's chief negotiator, John Smith, was due to have talks with deputy economy minister Jochen Homann and other members of the government's "Opel task force" in Berlin on Tuesday.
The carmaker has not commented on the fate of Opel, but the German government has called on the US government, which owns more than 60% of GM, to try to speed up the Opel sale process.
Broker?
When GM filed for bankruptcy protection on 1 June, it handed over control of Opel to a German-led trust., which will have to approve any solution.
The Opel Trust board has two GM representatives and two for Germany - one for Berlin and one delegate for the four federal states in which Opel has a plant.
There is a fifth "neutral" board member - Fred Irwin, president of the American Chamber of Commerce in Germany - but he has no vote. He may, however, be forced to try to broker a deal, analysts say.
GM, once the world's largest carmaker, struck an outline deal with Magna in May, days ahead of seeking bankruptcy protection.
In July, GM emerged from Chapter 11 bankruptcy with a number of new US government-appointed board members.
On Monday, the White House said that President Barack Obama's "view is that decisions made about the day-to-day operations at General Motors should be made by the folks at General Motors".
NFDA requests meeting to discuss Scrappage
The National Franchised Dealers Association (NFDA) has requested a meeting with Government to discuss an extension of the Motor Vehicle Scrappage Incentive Scheme.
'To say the scheme has been successful since its introduction would be a mass understatement' says Paul Williams, NFDA Chairman, 'but with the retail economic climate still fragile and an increase in VAT scheduled for 1 January 2010, an extension of the initiative is vital. Further, our research tells us that as these sales are purely incremental, the VAT earned on them has made it a self funded scheme. Indeed, if VAT were to increase Government could be in receipt of a surplus.'
Boris takes to the hydrogen highway
Boris Johnson is to help create Britain's first 'hydrogen highway', using a scheme to promote zero-emissioned cars modelled on one introduced in California by Arnold Schwartznegger, the state's governor.
The mayor of London wants to make Britain a leader in fuel-cell technology and is planning a network of hydrogen filling stations in the capital. He intends to assemble a pilot fleet of 150 hydrogen cars in the run-up to the 2012 Olympics, together with five buses and 20 black taxis.
Johnson's officials believe that by 2029, as many as one in three of the 31 million cars in Britain could be fuelled by hydrogen. Britain has agreed to cut its CO2 emissions by 80 per cent by 2050.
Johnson said the hydrogen network would be developed alongside Government plans to introduce electric cars.
He said: 'Harnessing low carbon technology is key to solving the pressing issues of energy security, climate changing emissions and improving air quality.
'With electric vehicles gearing up top become a mainstream choice in a few years' time, we are creating the right conditions for them to flourish.'
In April, Gordon Brown announced plans to subsidise electric car use. Johnson followed up by unveiling a scheme for 25,000 'juice points' - charging stops for electric cars in London.
Kit Malthouse, deputy London mayor and chairman of the London Hydrogen Board, added: 'We think it's going to be pretty big. We plan an initial network of six or so hydrogen filling stations around the capital. We would then be able to fuel the next generation of vehicles.'
SMA urges dealers to set realistic auction prices
Vehicle dealers and fleet operators selling stock at auction in the next few weeks should make sure that they set realistic reserve prices that take into account the fact that market conditions may soften, according to the RMI's Society of Motor Auctions (SMA).
The SMA, which represents the majority of the UK's motor auctions sector, believes that increased used car volumes could lead to a drop in the value of used cars, which has been high in recent months.
Head of the SMA, Louise Wallis commented: 'Sellers at motor auctions have enjoyed the best possible conditions over recent months, with reduced supply and good demand from buyers, resulting in high conversion rates and strong prices. Inevitably the rising prices must impact on consumer demand, and it is likely that this will affect price in the wholesale markets.
'There is a risk that the market could soften in the near future, with increased volumes from lease and contract hire sources, plus additional dealer part-exchange vehicles reaching remarketing channels in the weeks ahead. This will mean there is greater choice and more competition for the buyer's attention and any vehicles which appear over-priced relative to their age and condition may not sell at the same price levels as they have been.'
Wallis emphasised that it is important for sellers to maintain a dialogue with their auction partner: 'If market conditions change, don't be the last one to find out with a growing list of unsolds and re-entries. Re-appraise your stock if necessary, manage your inventory through the appropriate channel, be prepared to invest in pre-sale preparation and get it sold for true market value first time. Be aware that contract extensions will lead to higher mileage, harder worked vehicles coming back so an element of pragmatism will be appropriate when it comes to appraising stock, vehicle preparation and valuing for sale.'
Wallis concluded: 'This year has been exceptional so far, so it would be understandable if sellers got a little over confident with their pricing. It is still critical to maintain good remarketing practice and accurate pricing, even more so if conditions change.'
Suzuki wants 10 more dealers
Suzuki GB is aiming to grow its network to up to 165 dealers in the UK.
The news comes after the Japanese brand announced six simultaneous appointments to its network, bringing its total network up to 152.
The six dealerships are opening in Worthing, Queensferry in Flintshire, Dorchester, Manchester, Letchworth and Sittingbourne.
This six dealers coming online at the same time was an intentional decision by Suzuki after it prospected for new dealers to fill open points for the brand.
All will be fully operational by early September and Suzuki.
Suzuki told AM the dealer network is profitable. Based on the June 2009 composite; profitability has grown from a net profit of 1.4% in June 2008 to 2.2% in June 2009.
A spokesman for Suzuki said: “The new appointments are due to the interest created by both prospecting the open points and the interest of the prospects in the Suzuki franchise as a profitable and mainly retail franchise (approx 88%).
“The total size of dealer network really depends on future market conditions but Suzuki is aiming for between 160-165 dealers in the longer term.”
Dale Wyatt, Suzuki GB general manager of dealer development, added: “By opening six new dealerships nationwide, we are ensuring our showrooms are accessible to our customers and reducing customer drive-time for both sales and aftersales service.”
Suzuki is actively looking to appoint more dealers and is currently carrying out open point surveys.
DATED: 30.08.09
FEED: AM
Business Confidence on the Rise
Confidence among business professionals has risen by the largest amount for two years.
The Institute of Chartered Accountants' (ICA) index of business confidence rose to 4.8 at the end of June in comparison to -28.2 at the end of March.
Despite the rise, ICA chief executive Michael Izza warned against “underestimating” the challenges ahead for businesses.
The ICA predicts the UK economy will grow by 0.5% in the third quarter following on from the economy shrinking by 0.8% in the second quarter of this year.
More than 1,000 chartered accountants were surveyed across England and Wales.
Izza said: "This quarter's Business Confidence Monitor suggests that the UK recession is at an end.
"While there is no doubt that the UK economy is on its way to recovery, we shouldn't underestimate the challenges ahead for businesses."
DATED: 30.08.09
FEED: AM
Toyota recalls 690,000 China cars
Toyota, the world's biggest carmaker, is recalling almost 690,000 cars made in China because of faulty electrical window switches.
The recall affects the company's Camry, Corolla, Vios and Yaris models made at two joint ventures in China - Guangzhou Auto and Tianjin FAW.
This represents Toyota's biggest recall of cars in China.
The company said that no injuries or accidents had been reported as a result of the faulty electrics.
"The size of the recall is big, but won't be a major problem for Toyota given the nature of the defect. Still, there will be some impact in the short term," said Huang Zherui, analyst at CSM worldwide.
The recall includes 384,736 Camrys made with Guangzhou Auto between 15 May 2006 and 31 December 2008.
A total of 22,767 Yaris compact cars made last year with the same partner are also being recalled.
The affected cars also included 245,288 Corollas and 35,523 Vios made in 2008 with FAW.
Last month, rival Japanese carmaker Honda announced it was recalling 440,000 vehicles in the US because of an airbag defect.
GM delays decision on Opel future
The Detroit-based firm said directors had met on Friday to discuss the options but "no decision was taken".
An assessment on whether to start exclusive talks to buy German-based Opel had been expected at the weekend.
The race to control Opel is between the Canadian component manufacturer Magna and Belgian financial group RHJ.
The BBC understands that a number of stumbling blocks have emerged to delay the final decision.
The German government - which has openly preferred the bid from Magna and has offered it bridging finance of 4.5bn euros ($6.4bn, £3.9bn) - is thought to have added further conditions to that support.
Magna has publicly promised to cut fewer jobs in Germany, where 25,000 people are currently employed in the division.
Buy-back option
Germany's economy minister said he regretted the failure to make a decision.
Karl-Theodor zu Guttenberg was also quoted as telling the online edition of the Hamburger Abendblatt newspaper that "there is still room for an agreement".
UK Business Secretary Lord Mandelson has been critical of German Chancellor Angela Merkel for politicising the bidding contest ahead of federal elections in the country, at the end of September.
Earlier this week Lord Mandelson said GM needed to look for an "industrial outcome based on the long term viability" of Opel.
Lord Mandelson has also said he would stand by the UK carmaking industry - in particular Vauxhall, which employs more than 5,000 people directly in its plants in Ellesmere Port, Cheshire, and Luton, Bedfordshire.
He did not specify what level of financial support, if any, would be provided and he has also warned there would be some job losses irrespective of who gains control of Vauxhall.
There is also speculation that GM, which only recently emerged from Chapter 11 bankruptcy with a host of new US government-appointed board members, may prefer to exercise a buy-back option in the future.
That could see it re-acquiring Opel and Vauxhall within a few years at an advantageous price - an option which may be unpalatable to any potential buyers.
German media has also reported that GM may be also toying with the idea of placing Opel into insolvency, though that was played down on Saturday by a spokesman for the US company.
Arnold Clark to create 700 jobs
Scottish-based car retailer Arnold Clark is to create 700 jobs across the UK by early next year.
The firm said it would create 500 new sales jobs, as well as recruiting 120 modern apprentice places and 80 people for supporting roles.
The boost was partly down to the "stabilisation" of the car market because of the government's scrappage scheme, Arnold Clark said.
The chancellor said the announcement was "good news" for the car market.
Arnold Clark said there would be 155 new jobs in the Glasgow area, 25 in the Dundee area, 50 in the Aberdeen region and 130 in and around Edinburgh.
South of the border, 150 new posts will be created in the Manchester region, 20 in the Warrington area, 20 in and around Stafford, 80 in the Huddersfield area and 70 at an as-yet unnamed new site in the north of England.
Annual turnover
Sir Arnold Clark, chairman and chief executive of the company, said: "With the global economy going through such a difficult period, our announcement today can only be seen as a positive step in helping to combat unemployment.
"The extra 700 jobs can partly be attributed to the stabilising of the car industry since the introduction of the government's scrappage scheme in May."
Chancellor Alistair Darling said: "The UK car market is a vital part of our economy and that is why we introduced the car scrappage scheme at the Budget.
"The scheme is providing a vital boost to the UK car industry at a time when it needs it most"
The family-run Arnold Clark business has an annual turnover of more than £2bn.
Its ongoing expansion and future development plans include a new site in Huddersfield which is set to open its doors in October, and a fully redeveloped showroom in Preston.
