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
