Wednesday, October 14, 2009
Deal done to save Vauxhall jobs
The Unite union says it has reached a deal with Magna, the proposed new owners of Vauxhall, to protect jobs at Ellesmere Port and Luton.
Unite said about 600 jobs would go, all through voluntary redundancy. It had been feared that 1,200 of the 5,000 Vauxhall jobs in the UK could be cut.
Magna declined to comment, but Vauxhall said the deal was "very good news".
Business Secretary Lord Mandelson said there was still "some way to go" in agreeing the financing of the deal.
The government wanted to be satisfied about the security of the hundreds of millions of pounds of guarantees it was putting in, he said.
But he added that it was "a much better deal than was offered to us in the first place".
'Team effort'
Unite has agreed to a two-year pay freeze and other cost-savings in return for having no compulsory redundancies.
There was concern about jobs at the two plants after General Motors (GM) decided to sell its European arm.
"This is very good news for Vauxhall's UK operations and is the result of a tremendous team effort between [the] leadership of Unite and the management team at Vauxhall," the company said in a statement.
The deal "gives both plants job security and a future through to 2013, providing a good basis for a long-term future beyond that", said Tony Woodley, joint general secretary of Unite.
And Mr Woodley praised the role Lord Mandelson had played in securing the deal.
"There's absolutely no doubt... that Mr Mandelson's personal, political associations in Europe and elsewhere have changed the dynamics here," he told the BBC.
"Without his personal help we would not have secured the deal that we have got now."
Longer hours
Magna is in the process of buying both Opel and Vauxhall, having been chosen by GM after a long-running bidding process.
Magna's co-chief executive Siegfried Wolf had signalled that the Canadian firm could cut as many as 10,500 jobs at Opel and Vauxhall.
It had been feared that about 1,200 of those would go in the UK, but Unite said that only 600 would now be cut and all of those would be through voluntary redundancy.
While Unite has agreed to a pay freeze, its statement added that there would be an increase in working hours to top up workers' earnings.
Under the deal, Ellesmere Port will produce the next generation Astra, set for 2016, subject to maintaining its competitive position.
Meanwhile, talks between Magna and Spanish unions ended without agreement on Tuesday, the unions said.
Magna wants to cut about 1,300 of the 7,000 staff at the Opel factory in the northern Spanish town of Figueruelas, which unions oppose.
"The meeting has finished without any kind of agreement," said Juan Arceiz, head of the workers committee at Opel Spain.
Motor finance sales show first increase in more than a year
Sales of new cars bought by consumers using dealer finance have grown for the first time since July 2008, according to figures published today by the Finance & Leasing Association (FLA).
In August, the number of new cars sold with dealer finance to consumers increased by 4% compared with the same month last year.
While this is welcome, a recent survey of FLA members confirmed that the high cost and restricted availability of wholesale funds remains a serious threat to the market.*
The Government's confirmation last month that it remains in discussion with the European Commission about a guarantee scheme that might help ease wholesale funding pressures was welcome. But a positive result from these talks is now urgent.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: "This is the first increase in dealer finance provided to consumers for new cars in over a year. Motor finance companies are telling us that the impact of the car scrappage scheme on finance sales has been limited. Motorists tend to opt for buying small cars and pay the balance from any part exchange under the scrappage scheme with their savings, rather than by using car finance. But dealer finance remains a popular option for consumers. Motor finance companies are offering competitive deals, which are driving sales. For the longer term health of the market, we still need to see progress from the Government in dealing with the wholesale funding issue."
* In a recent survey of FLA members, 65% of members said that the threat to their businesses from the high cost of funding remained severe
M&S plugs into electric cars
Marks & Spencer is to open 'top-up' electric charging points at more than dozen out of town sites in the South East of England.
The move was announced as a 20-strong trial fleet of electric Minis hit the roads. Users in the South East will use the pollution-free cars for six months on a £330-a-month leasing deal, with home chargers installed in their garages.
Each user must commit to travelling at least 300 miles a month in the cars and having their motoring and charging habits monitored.
Smart meters will also track charging and usage patterns to help power firms and Mini plan for the future. Twenty more Mini Es will run on the car fleets of Oxford City and Oxfordshire County Councils.
Motor finance sales show first rise in 13 months
The performance compares favourably with that for the three months to August (down 3 per cent) and the year to August (down 19 per cent.)
"Motor finance companies are telling us that the impact of the car scrappage scheme on finance sales has been limited.
Small cars
"Motorists tend to opt for buying small cars and pay the balance from any part exchange under the scrappage scheme with their savings, rather than by using car finance," said FLA chief economist and head of research Geraldine Kilkelly.
The used car finance sector suffered in August with the number of cars sold on consumer finance falling 23 per cent, compared to a decline of 13 per cent in the three months to August and 15 per cent in the year to August.
Call for help
While the FLA welcomed the rise in new car sales, it repeated its call for the government to improve wholesale funding for the car sector.
"For the longer term health of the market, we still need to see progress from the Government in dealing with the wholesale funding issue," said Kilkelly.
A recent FLA survey found 65 per cent of its members said the threat to their businesses fro the high cost of funding remained severe.
DATED: 14.10.09
FEED: MT
Unite reaches agreement on Vauxhall jobs
Two year pay freeze
The union said it had reached a deal for the two-year pay freeze and other cost cutting measures in return for no compulsory redundancies.
Unite said that 600 jobs instead of the feared 1,200 would now go in the form of voluntary redundancies.
Under the deal Ellesmere Port will make the new Astra set for 2016 subject to it maintaining its competitive position.
In a statement, Vauxhall said: "Following extensive and constructive dialogue, we are pleased that the parties have secured an agreement that protects the jobs and prospects of the 5,000 Vauxhall employees in the UK.
Production security
"Both the Ellesmere Port and Luton manufacturing operations will retain security of production, increased in the case of Ellesmere Port to 148,000 on two full shifts... There will be no enforced redundancies."
DATED: 14.10.09
FEED: MT
PSA turn to natural materials for car components
PSA Peugeot Citroen has started to use components made from natural materials - radiator caps and side mirror mountings that contain hemp instead of glass-fibre; parcel shelves that are moulded in a plastic made from wood chippings; and inner door panels that are 50 per cent flax.
The components are the fruits of PSA's Green Materials Plan, set up last year. Its target is a six-fold increase in natural and renewable materials used in all its vehicles by 2015.
The programme, which covers all models in development, will bring weight and cost savings as well as a reduction in energy use and carbon dioxide emissions, and the conservation of non-renewable resources.
The average car has 1,000 plastic parts, which amount to 20 per cent of its weight. Today, green materials account for only 6 per cent of that 20 per cent but Peugeot Citroen intends that proportion to reach 30 per cent by 2013.
Chrysler and BBDO set to part company in 2010
Chrysler and its long-term US agency BBDO are to part company when their contract expires at the end of January, according to reports.
BBDO has held the account since 1994. However according to a report in Advertising Age, based on an executive "close to the matter", there was a "contentious meeting" 10 days ago between senior executives of the agency and Chrysler which included Sergio Marchinonne, the CEO of the carmaker's new owner Fiat.
Subsequently Chrysler, which spent around $1.1bn in the US last year, told BBDO it was putting all of its Q4 projects up for review.
This has seen Publicis & Hal Riney and Richards Group each given two new projects with the latter handed responsibility for the Dodge brand.
Although BBDO has created a regional TV campaigns for the Chrysler 300 and the Town & Country minivan there is speculation this may be in order to fulfill contractual obligations to the agency.
A separate report in AdWeek described problems arising from Chrysler's decision to put all Q4 projects for review. Sources described the process as "chaotic" and "dysfunctional".
This has also been a period of upheaval at Chrysler. Earlier this month the head of Fiat's Lancia brand Oliver Francois was appointed as marketing chief for Chrysler. He replaced Michael Accavitti who himself had only been in the job for four months. Fiat took control of 80% of Chrysler in June, taking the car giant out of administration.
CO2 output falls thanks to scrappage scheme
Toyota is first manufacturer* to meet EU target figure.
The current rate of improvement would enable the car industry to meet the EU target of 130 g/km of CO2 by 2012. In fact one manufacturer has just dipped below that all-important figure in the UK: Toyota has dropped to 129.2 g/km, leapfrogging both Mini and Fiat, who are hovering just above the 130 g/km threshold.
"It is highly significant that a major manufacturer has met the EU target, as it means no mainstream car manufacturer has an excuse for failing to meet the target in future." commented Jay Nagley, Publisher of www.cleangreencars.co.uk.
Toyota's performance stems from three actions it has taken over the last few years:
It made the unusual decision to drop three models from its UK line-up that had higher emissions - the MR2, the Previa and the Celica. That was done with the specific goal of reducing average CO2. At the same time it increased the range of its small cars - e.g. the new iQ The Toyota Optimal Drive system has reduced emissions across the range The Prius hybrid (particularly the latest version) has made a small, but noticeable difference to the average CO2 figure. Amongst other manufacturers to make significant gains are Hyundai, now with the fourth lowest average emissions in the UK (134.4 g/km) and Audi, which has cut emissions by 9.6% to 158.2 g/km and is now one place behind BMW (154.7 g/km).
In terms of absolute tones of CO2 saved, Ford continues to have the largest reduction, with just over 10,000 tonnes saved on an annualised basis - mostly thanks to the more economical new Ka and Fiesta. This figure is calculated by taking the average reduction per Ford sold (8.66 g/km) and multiplying by the average mileage in the UK (13,000 km) and then by the total number of Fords sold this quarter (89986 units).
While the industry can congratulate itself on these figures, there is a dark cloud inside the silver lining. Once scrappage incentives come to an end, CO2 figures will start to rise unless the industry works very hard to maintain progress. Politically, it would be very difficult for the industry to explain why its CO2 figures are going up just as EU targets come into force.
* defined as manufacturers whose range includes four seat models, not just two seat city cars.
GM agrees Chinese sale of Hummer
General Motors (GM) has agreed to sell its iconic Hummer brand to Chinese firm Sichuan Tengzhong Heavy Industrial Machinery for an undisclosed fee.
The two parties had been in talks about the sale for a number of months.
GM is in the process of selling and winding up a number of brands as it looks to reorganise after emerging from bankruptcy protection in July.
At the start of this month, the troubled carmaker announced it would be winding down its Saturn brand.
This was after the proposed sale to Penske Automotive Group collapsed.
GM has already announced that it is discontinuing the Pontiac brand, and is close to finalising the sale of its European brands Saab, Opel and Vauxhall.
GM plans to reinvent itself by concentrating on fewer brands following bankruptcy protection, made necessary after car sales plummeted during the downturn.
'Next generation'
Under the terms of the Hummer deal, Tengzhong will take an 80% stake in the company, with the remaining 20% going to Hong Kong entrepreneur Suolong Duoji.
The current Hummer management team will continue to run the company.
The deal is still subject to regulatory approval.
"Hummer is a strong global niche brand and this agreement signifies another important milestone in writing the next chapter of both GM and Hummer," said GM boss Fritz Henderson.
The company also said it would be focusing on improving efficiency, including the introduction of diesel engines.
"We are excited about some of the initiatives already underway at Hummer that we believe our investment will be able to accelerate, particularly related to the creation of the next generation of more fuel efficient vehicles to meet not only future regulations but also customer expectations," said Yang Yi, chief executive of Tengzhong.
Star struck
Hummers were originally built as military off-road vehicles by a company called AM General.
The brand took off as US motorists flocked to the sport utility vehicles favoured by celebrities including Arnold Schwarzenegger.
GM bought the Hummer brand in 1999, but sales have suffered recently as the gas-guzzling performance and military image have become less popular.
Hummers weigh up to five tons and have fuel consumption of around 15 miles per gallon.
Tengzhong specialises in making equipment for the road, construction and energy industries.
It is based in China's Sichuan province.
Tata raises cash to pay off debts
Tata Motors has raised $750m (£469m) from investors and says it will use the funds to repay debt from the purchase of Jaguar Land Rover.
The company said it had received an enthusiastic response to the sale of shares and bonds that may be converted into shares.
But the news caused the company's stock to fall by 6.7%, which was the biggest drop since August.
Tata bought Jaguar Land Rover from Ford last year for $2.3bn.
In a statement, Tata said it had met its initial fundraising target of $600m within one hour.
The success of the sale was "a significant milestone", according to vice chairman Ravi Kant.
The company had already repaid back much of the $3bn loan it had taken out to finance the purchase of the two premium car marques.
UK's Basil Fawlty drivers talk to Toyotas and scream at Skodas
UK motorists are talking to their Toyotas and speaking to their Seats according to new research by one of the UK's largest used car websites which revealed that 75 per cent of motorists admit chatting to their cars.
The findings from a motors.co.uk poll of 1,200 drivers, found that 44 per cent (529) 'sometimes' natter to their Nissans with a further 31 per cent (373) of motor mouths claiming to 'always' converse with their car.
And following in the footsteps of Basil Fawlty and Knightrider, a surprising 21 per cent of men admit to talking to their cars at least 'sometimes'. Only a silent minority, 25 per cent (298) of motorists claim never to gossip with their Golfs.
But why are so many drivers babbling to their BMW's? The rise in the popularity of in-car sat navs could explain why more motorists have become comfortable communicating with their cars.
However not all car talk is idle chatter, some luxury models like the Jaguar XF now have a voice activated command system giving drivers a reason to mutter to their motor and the Mercedes E-class has a voice warning to tell drivers about upcoming road signs. Even the humble Austin Maestro MG from the 1980's had a vocal warning when running low on petrol.
According to another survey from motors.co.uk, a quarter of drivers (26 per cent) admit to having a pet name for their motor such as Pablo the Prius, Connie the Corsa and Sexo the Saxo. This was despite only (21 per cent) of people giving their partner a similar term of endearment.
Katie Armitage, Marketing Manager for motors.co.uk said:
"The findings of this survey are certainly an eye opener - there are a lot of motorists out there happily chatting away to their cars and with in-car technology becoming more advanced all the time, their cars could soon be able to talk back to them!
"With many people spending several hours a day travelling to work, it's not surprising that more people seem to be talking to their cars. Manufacturers spend millions on advertising trying to give their cars a personality whether it's fun and cheeky Minis to safe, dependable Volvos, which could explain why people feel able to relate to their cars."
Monday, October 12, 2009
Government demands over Vauxhall jobs 'dishonest'
The UK government is asking for impossible commitments over Vauxhall's plant at Ellesmere Port, according to Carl-Peter Forster, chairman of the Opel supervisory board.
Mr Forster says that Lord Mandleson, Secretary of State for Business Innovation and Skills, is asking for undertakings to build the next-but-one generation Astra at the plant.
The Astra plant at Ellesmere Port, which employs 2,166 people is, along with all European Opel/Vauxhall factories, under review by the prospective new owner, Magna International, which plans to axe at least 10,000 European jobs.
With the new Astra only just being launched this year, its replacement is at least six years off, which would mean the company giving undertakings about production at Ellesmere Port beyond 2016.
"This would be impossible and dishonest," says Mr Forster. "You cannot guarantee these sorts of things in the modern motor industry."
So far the talk has been of building Vauxhall's Astra-based, extended-range battery hybrid, the Ampera, at Ellesmere Port, but Mr Forster says that the Ampera is a sideshow and that the real debate is about keeping conventional Astra production at the plant.
"The Ampera is not the point at issue," he says. "I think that Peter Mandelson is frightened about the plant closing, but we are still working on the deal. We are working hard on the details and the next thing we have to deal with is the EU decision on that enquiry."
Drivers could face fines for leaving engines running
Drivers who leave their engines running could be penalised with a fixed penalty fine of up to £300.
Nottingham City Council is planning a series of fines under 'quality of life' measures as the council aims to cut emissions by 10% by 2010.
The council plans to use its civilian community offices to hand out penalties for 'day to day annoyances', which also include abandoning a vehicle.
Taxi drivers who leave their engines running for more than three minutes will also be targeted.
Londoners take the easy route to an online bargain
Used car buyers in London value the convenience of delivery when buying a used car online, according to research by the UK's largest online used car retailer, Autoquake.com. Nearly half (44%) of Autoquake.com's London customers choose to have their car delivered, compared with an average of one third (33%) for customers across the UK.
"We all lead busy lives these days, wherever we are in the country," said Autoquake.com's CEO, Garry Hobson. "However, there's plenty of evidence that Londoners work longer hours than the national average, so it's no surprise that time-poor drivers in the capital would rather have their car delivered than travel to collect it."
Londoners also differ from the rest of the country in their reasons for buying used cars online. The biggest attraction for the capital's car drivers is the reassurance of Autoquake.com's 7 day money back guarantee. This is the main reason for choosing Autoquake.com for 23% of London-based customers. When so many Londoners have their car delivered without ever having seen it, the offer of a no-quibble money back guarantee is understandably a big draw. Nationally, this is the deciding factor for just 9% of buyers.
In the rest of Britain, the most important reason for shopping online at Autoquake.com is price. Almost three-in-10 (28%) give this as the most important factor in deciding where to buy. In London, this is Autoquake.com's biggest selling point to 13% of customers.
"Price is important to Londoners," added Hobson, "but it doesn't seem to be as important as convenience. The beauty of buying online is that you can have both."
The new EU Consumer Credit Directive (CCD)
Continuing changes affect the partnership between the motor industry and point of sale finance. We have seen the scrappage scheme introduced this year and we await the outcome of discussions about the selling of payment protection insurance.
The next major legislative change on the horizon is the EU’s Consumer Credit Directive (CCD) which becomes law in June 2010 and is an effort to harmonise consumer credit trading practices across Europe.
Much of the detail of how these new rules will apply is still under discussion, but it will affect all dealers and will apply to the majority of their customers.
Black Horse is playing a major part in discussions which the Department for Business Innovation and Skills is having with the banking and credit industries and consumer protection bodies.
The final regulations will be released in November, but some of the key facts are already known.
There will be a requirement for dealers to provide customers with greater pre-contract information and new forms of credit agreement, as well as clearer guidance about the risk a particular agreement carries and the consequences of failure to pay.
The new rules may require more rigorous credit checks prior to acceptance, so one outcome may be the need for more information on our proposals.
Customers will have a 14-day right of withdrawal from their finance agreement. Any cancellation only relates to the agreement and does not extend to the vehicle purchase.
As the legislation becomes clearer we will let you know about developments and we will develop our online systems eQuips and LetsUConnect to help you manage any changes in procedure, supported by training to showroom staff before June 2010.
As ever, we’re committed to supporting our dealers through these changes and to help to minimise any impact on their business, by providing an informed and helpful interpretation of the new legislation.
DATED: 12.10.09
FEED: AM
Infiniti to launch hybrid saloon
Infiniti has confirmed it will produce a hybrid vehicle as part of its M range of saloons.
On sale in spring 2011, depending on market, the M35 Hybrid has an electric motor and twin clutch which will “optimise energy usage across the widest possible range of driving conditions” said Infiniti.
Details of driving range, performance and transmission are yet to be released but Infiniti said it was on target to beat its predecessors on fuel consumption and emissions.
New technology includes a laminated lithium-ion battery pack which is the same size as conventional batteries but offers twice the power.
The electric motor acts as both propulsion unit, boosting the V6 in power assist mode when maximum acceleration is required, and also as a generator. As well as charging the battery in the normal way, the motor recovers energy otherwise lost during deceleration and braking.
The M35 Hybrid can also run solely on its electric motor in certain driving conditions.
DATED: 12.10.09
FEED: AM
Dealers satisfied with finance house partnerships
Dealers’ relationships with their finance houses have only been slightly damaged by the recession, according to the latest Sewells New Car Finance House Survey 2009.
The survey shows average franchised dealer satisfaction with their new car finance houses running at 79% - just 0.3 points down from last year’s record score of 79.3%.
Vehicle manufacturers’ captive finance houses achieved a record finance market penetration of 84% in this latest survey, up from a penetration of around 80% recorded by New Car Finance House Surveys over the past decade.
But with more proposals being turned down due to tough lending criteria, the 2009 survey found 95% of dealers - the second highest ever percentage - were utilising a secondary finance house for new car business.
The survey results also suggest that average franchised dealer new car finance penetration has increased substantially to 52%, from 45% in the 2008 survey.
Rising point-of-sale new car finance penetration may be due in part to the consequences of the credit crunch halting the rise of direct lending in the motor finance market. But equally, it may be a result of increasing professionalism in dealerships with dealers and their suppliers working together to reverse a persistent decline in showroom car finance sales.
The research found that more and more dealerships are employing finance specialists with those employing F&I managers enjoying an average new car finance penetration of 54%, whereas those without averaged 47%.
Based on responses from 832 franchised dealers covering 51 franchises and 1,197 franchise outlets, the 2009 survey shows the quality of service provided by finance houses to their dealer intermediaries remains the major influence on dealer satisfaction.
Service-related issues accounted for four of the top 10 dealer priorities in the 2009 survey, down from five in 2008 and eight in 2007 – but they were still the top four satisfaction factors. The highest dealer priority was the speed that finance houses turned around proposals.
The latest survey also shows a year-on-year increase in dealers saying the credit crunch has had a negative effect on customer enquiries for finance – for 40% of dealers polled in August 2009, compared with 30% a year earlier, when car sales had just entered free-fall.
The New Car Finance House Survey 2009 also explored franchised dealers’ views on acceptance of proposals and compared the results to an identical question asked in August 2008 and November 2009. In August 2008, 42% of franchised dealers polled said acceptances were down. This increased dramatically to 53% in November 2008, however the latest position (August 2009) is similar with 54% saying acceptances were down.
For more information about any of the products and services available fromSewells please call 01733 468254 or visit www.sewells.co.uk
DATED: 12.10.09
FEED: AM
EU pledges scrutiny on Opel deal
The European Union has pledged to ensure job cuts and factory closures at Opel and Vauxhall are not influenced by levels of state aid given to the firm.
Competition Commissioner, Neelie Kroes said she wanted a "level playing field", with no conditions that breached EU rules attached to funding.
The UK, Spain, Poland and Belgium fear the planned takeover of GM's Opel will favour German factories and jobs.
Germany has offered Opel's would-be buyer Magna a 4.5bn-euro (£4bn) loan.
Reports suggest that if the deal goes through, Magna is planning to cut about 11,000 jobs from the workforce of 45,000 in Europe.
'Long-term viability'
In a letter to UK Business Secretary Lord Mandelson and his counterparts in other countries with Opel and Vauxhall plants, Ms Kroes said her department was investigating whether plans to grant aid to the new Opel owners would be based on discussions about how the firm would be restructured.
She said that any aid that "defines the geographic distribution of restructuring efforts" and gave the buyer no choice to later adapt their decisions would not be allowed.
"This is particularly important in the present case, as the emerging New Opel may need such freedom in order to secure its long-term viability," Ms Kroes said.
A firm receiving public money "must retain full freedom to develop its activities... on the basis of its own assessment of economic conditions", she added, saying that such aid would be "incompatible" if this key criteria was not met.
Opel's factory in Antwerp is almost certain to close, GM has admitted, as the new buyers look to cut overheads - prompting Belgium to question the transaction.
Meanwhile Spain has written a letter to the European Commission, calling for the solution to the future of Opel to be one that works across Europe - and not just for one nation.
And in the UK, there are concerns for the future of Vauxhall.
While Magna has said it is committed to keeping Vauxhall's Ellesmere Port plant open, doubts remain about the firm's plant in Luton. The two sites account for most of Vauxhall's 5,500 UK workforce.
Renault 'willing' to assist Avtovaz rescue
A top Russian official has said that Renault had expressed willingness to invest in Avtovaz although the French company said it had no plans to inject cash into its ailing Russian affiliate.
The remarks by Igor Shuvalov, Russia's first deputy prime minister, come a few days after prime minister Vladimer Putin said Renault needed to invest in the turnround of Avtovaz, or see its 25% stake diluted.
Mr Shuvalov said: "They [Renault] confirmed that they have a strategic interest in Avtovaz's development, and they are prepared to invest in the company's growth."
He said the level of Renault's investment had yet to be determined and would only be clear after 'the necessary evaluation'.
Renault said it was reviewing several options to help Avtovaz.
Convertible drivers risk hearing damage
Drivers of convertible cars could be risking permanent hearing damage from wind and road noise, according to new research.
Road surface, traffic congestion and the wind combined to produce noise levels of between 88 and 100 decibels at speeds of around 70 mph.
Long or repeated exposure to sounds of 85 decibels is widely recognised to raise the risk of permanent hearing loss.
Surgeon Philip Michael, an ear, nose and throat specialist at Worcestershire Royal Infirmary, who carried out the research, said motorists did not appreciate the risk.
Motor manufacturers sign up to digital radio deadline
Digital radios should become standard in new vehicles from the beginning of 2014 after motor manufacturers agreed to adopt the technology.
Manufacturers and broadcasters have signed up to proposals made in the Digital Britain white paper published in June, which allow for FM stations to be turned off from 2015.
Installing digital radios in vehicles is seen as a key step to ensuring that digital becomes the principal way in which Britons listen to radio. Although a third of British homes have a digital radio, only a handful of vehicles on the road have digital receivers.
However, more than a fifth of all radio listening takes place in vehicles so broadcasters view the agreement as a crucial issue for the industry.
Digital Britain's goal is to ensure that all new cars either have digital radio as standard from 2014, or can be upgraded cheaply. What is less clear is how older vehicles will be brought into the scheme.
Scrappage sales by Carmaker
September saw one-in-five or 77,316 new scrappage cars registered using the scheme, taking the tally since its start in May to 178,278, according to figures from the SMMT.
In the commercial vehicle sector, a total of 2,839 vans have been registered since the scheme began and 1,023 in September, accounting for 3.6 per cent of overall van registrations in September.
"The scrappage scheme is providing the foundation for recovery in new car registrations but there is still a long way to go.
"The recently announced extension will allow for a further 100,000 vehicles and the new criteria will open the scheme up to more consumers, allowing time for the market to stabilise as the economy gradually improves," said Paul Everitt, SMMT chief executive.
Below is a complete breakdown of carmakers and the numbers of cars registered since the scheme was launched in mid-May.
Al figures are attributable to SMMT.
Carmakers' scrappage vehicles
Cabdirect Taxis 8
Audi 1,703
BMW 1,376
Chevrolet 1,876
Chrysler 79
Citroen 6,682
Daihatsu 545
Dodge 89
Fiat Group 13,586
Ford 21,687
Honda 6,564
Hyundai 21,278
Jaguar 103
Jeep 67
Kia 12,772
Land Rover 175
Lexus 46
LTI 141
Mazda 5,047
Mercedes-Benz 603
MG 34
MINI 2,271
Mitsubishi 1,315
Nissan 8,060
Perodua 108
Peugeot 8,079
Porsche 16
Proton 143
Renault 5,254
Saab 133
Seat 3,091
Skoda 5,288
Smart 531
Ssangyong 2
Subaru 201
Suzuki 7,508
Toyota 15,570
Vauxhall 12,359
Volkswagen 11,472
Volvo 2,416
Total 178,278
Source: SMMT
DATED: 12.10.09
FEED: MT
Jaguar Land Rover gets £175m loan
Jaguar Land Rover has secured further funding worth £175m in the form of a loan from the State Bank of India, the carmaker has said.
The firm is struggling against falling sales during the downturn and has been looking at a number of refinancing packages in recent months.
The UK government had offered support but the Indian owner of Jaguar, Tata, said the terms were too "onerous".
The carmaker has now secured £500m of new funding this year.
It has come from a number of different sources, including Standard Chartered Bank, Bank of Boroda, and Burdale Financial Limited - a subsidiary of the Bank of Ireland.
"We are pleased our funding plans are progressing and appreciate the confidence shown by our banking partners in our business," said Jaguar's chief finance officer Kenneth Gregor.
Big losses
Last month, the carmaker announced that would close one of its West Midlands plants by the middle of the next decade - either the Castle Bromwich plant in Birmingham or its factory in Solihull.
The closure is part of a cost-cutting exercise to make the carmaker more efficient.
It lost £280m in the 10 months to the end of March, during which sales fell by almost a third.
Tata bought Jaguar Land Rover for £1.7bn in June 2008 from Ford.
It currently employs 14,500 people, having made 450 redundancies at the start of the year.
The firm is based in Gaydon, Warwickshire, and has a factory in Halewood, Merseyside, as well as the two in the West Midlands.
MG - No car production 'until spring'
MG sports car production in Longbridge has stopped and will not resume until the spring, the company has confirmed.
However, the Chinese-owned firm MG Motor said it could not comment on reports that 20 jobs would be lost at the plant in south Birmingham.
In a statement, MG Motor said it had notified staff of the highest possible number of redundancies and said it was working to minimise that number.
Production of the MGTF sports car restarted at the factory last year.
The company's statement said: "Clearly this is a difficult time for employees and it would be irresponsible to make this a bigger issue than it is and to worry more people than absolutely necessary."
It added that speculation was "not helpful at the moment".
Costliest optional equipment worth little on used car market
Improve the aesthetics, rather than the gadget count, in order to boost residuals, says Glass's
Many of the most costly items of optional high-tech equipment currently available on new prestige-brand cars are worth very little on the used market, according to the latest analysis from GlassGuide.co.uk.
In the large luxury car segment, which includes the BMW 7 Series, Audi A8 and Mercedes-Benz S-Class, the average cost of radar cruise control is £1,750. However, after just 12 months the typical trade value of the system is just £250, equivalent to an 86 per cent fall in value. Depreciation for the car itself is slower - over the same period the trade value of a typical diesel-powered car in the segment falls by only 42 per cent.
Other new on-board technologies also depreciate very rapidly. The average cost of a night vision system is currently £1,250, but after 12 months its value will have fallen by 80 per cent to just £250.
Often the options that retain their value best, as well as improve the overall saleability of the vehicle, are those that enhance the aesthetic appeal of the car, explains Richard Crosthwaite, Prestige Car Editor at GlassGuide.co.uk. "Investing in a manufacturer-fit styling upgrade is often very worthwhile, as it can return more than 100 per cent of its original cost. For example, a one-year-old BMW 325i with an optional M Sport pack is currently worth £3,500 more than a standard 325i of the same age, even though the pack itself would have added only £2,500 to the list price."
Crosthwaite says specifying larger wheels can also enhance the desirability and value of a prestige car. "Opting for 20-inch alloy wheels in preference to the standard-fit 19-inch items on a BMW 330i coupe will add £1,000 to the value of a one-year-old example."
Underlining the fact that used car buyers are not necessarily attracted by the latest high-tech gadgets, Crosthwaite says there has been a sustained improvement in the retained value of sunroofs over recent months. "The trend is most apparent with panoramic sunroofs on large prestige SUVs, where they can retain more than 50 per cent on a one-year-old vehicle."
Used car buyers have growing expectations about the equipment that will be fitted to a prestige-brand car. "On larger models, items such as Bluetooth, park distance control and sat nav are increasingly regarded as essential to secure a sale on the used market," adds Crosthwaite. "A large, one-year-old SUV without full-screen satellite navigation would be worth £2,500 less than one fitted with such a system.
"Buyers of smaller prestige cars are still willing to pay extra for such options. A one-year-old Audi A3 or BMW 1 Series specified with park distance control, Bluetooth and a sunroof would currently draw a premium of between £500 and £1,000."
