Wednesday, November 04, 2009
Service please...
This week there was a damning, but sadly unsurprising, piece of research published by a leading assistance company. Through a programme of mystery shopping exercises at dealers (the scourge of any showroom lizard), they only managed to stir any interest out of a measly 10% of those contacted.
Following a brochure request 90% of dealers didn't even follow the enquiry up. If the requested glossies did land on the doormat, they were often in unbranded envelopes with handwritten addresses (occasionally even spelled wrongly). This means that the new car retailing environment has changed little since the early 1980s when electronic follow-up systems and CRM programmes were first introduced to many franchised dealers.
In such a highly competitive environment this sort of sloppy practice can surely have no future. Even if the enquiry comes to nothing it has to be followed through to the end. Car manufacturers spend millions of pounds to get customers to come through the door, pick up the phone or just to register on a website. Dealers themselves spend significant amounts in advertising that obviously still goes to waste due to the apathy of some sales executives.
Of course, playing devil's advocate, the customer may have a part to play. This apathy, though inexcusable, may be born of years of punters just looking to screw sales people down to the last penny. We all know that it is all about price, but what about a little loyalty to the dealer if they have had that - albeit rare - element of good customer service?
DATED: 04.11.09
FEED: AW
GM to return Opel Loan
General Motors Co. will return the money it was loaned by Germany to help Opel, German Economy Minister Rainer Bruederle said on Wednesday after the U.S. carmaker decided to keep its European unit.
"We will the get the taxpayer's money back," Bruederle told reporters in Berlin
DATED: 04.11.09
FEED: ANE
GM decides to keep Opel
GM cited the improving business environment over the past few months and the importance of Opel and its British unit
DATED: 04.11.09
FEED: ANE
Cost-cutting boosts Ford profits
Ford has announced profits of almost $1bn (£611m) between July and September thanks to increased market share and a successful cost-cutting programme.
Pre-tax profit for the quarter came in at $997m, compared with a loss of $161m a year earlier. Revenue was $30.9bn, down $800m on a year ago.
The US carmaker said it was making "tremendous progress despite the slump in the global economy".
It also said it expected to be "solidly profitable" during 2011.
'Challenging road'
Ford cut costs by $1bn during the quarter, bringing the total reduction for the year-to-date to $4.6bn.
This exceeds the target of $4bn that the carmaker set itself for the whole of 2009.
It said these reductions came from lower manufacturing costs due to improved productivity and staff cuts.
The carmaker also reported increased market share in the US and in Europe, and a 63% jump in sales in China.
"Our solid product line-up is leading the way in all markets," said Ford boss Alan Mulally.
"While we still face a challenging road ahead, our One Ford transformation plan is working and our underlying business plan continues to grow stronger."
Crisis measures
Unlike its rivals, General Motors and Chrysler, Ford has managed without a US government bail-out.
However, it has not escaped unscathed from the financial crisis and economic downturn.
The company has cut tens of thousands of jobs and closed factories to reduce costs.
It is also considering the sale of its Swedish brand Volvo to raise cash, after already selling off its luxury European brands Jaguar and Aston Martin.
Last week, Ford announced that a consortium led by China's Zhejiang Geely was its preferred bidder for Volvo.
DATED: 04.11.09]
FEED: AW
Suzuki triples profits forecast
Its strength in the Indian market has meant it has performed better than its rivals, which rely more on US sales.
It reported six-month net profits of 12.5bn yen ($139m; £85m) which was 63% down on the same period last year.
Suzuki is now predicting full year net profit of 15bn yen, up from the 5bn yen it forecast in May.
Last week, India's biggest carmaker Maruti Suzuki India, of which Suzuki owns a major stake, reported its quarterly profit had almost doubled.
But Suzuki's boss has warned of an uncertain outlook when government scrappage schemes end.
"It's doubtful whether these scrappage incentives would switch smoothly into real demand," said chief executive Osamu Suzuki.
Meanwhile Toyota subsidiary Daihatsu said its net profit fell by 60% in the six months to September, to 6.8bn yen.
However it also boosted its net profit forecast for the full year to 13bn yen, up from the previous 8bn yen figure.
And Fuji Heavy Industries, the maker of Subaru vehicles, posted a net loss of 21.7bn yen for the six months to September.
However the firm - also part owned by Toyota - also arrowed its net loss forecast for the financial year to 25bn yen from 55bn yen.
DATED: 04.11.09
FEED: AW
DVLA launches new memorable vehicle tax line
DVLA has launched a new memorable 0300 telephone line for motorists to tax their vehicles. The new number, 0300 1234 321, is available 24 hours a day, 7 days a week and takes less than 4 minutes to use. The service automatically checks that correct insurance and MOT documents are in place.
The popularity of the environmentally-friendly phone and online service is growing, with more than half of last month's vehicle tax renewals completed this way.
Andrew Rhodes, DVLA's director of products and services, said: 'We listened when our customers told us they wanted to have the option to interact digitally with DVLA, and we are constantly aiming to improve our services. By providing a new memorable renewal number we hope to make it even easier for motorists to tax their vehicle.
DATED: 04.11.09
FEED: AW
Transport Minister launches Fuel Economy Label
Transport Minister Sadiq Khan launches Used Car Fuel Economy Label
A colour-coded was today launched by Minister for Transport Sadiq Khan. The label provides consumers with clear 'at a glance' information on the running costs, fuel consumption and environmental performance of used cars available from participating dealers. The initiative builds on the success of the new car fuel economy label, which is now widely recognised by consumers.
The used car label is a voluntary initiative for dealers, developed by the Low Carbon Vehicle Partnership (LowCVP) with support from the Retail Motor Industry Federation (RMI), the Society of Motor Manufacturers and Traders (SMMT) and the Government.
The scheme was launched to the automotive trade in early August and so far over 1500 dealers have signed-up with the Vehicle Certification Agency (VCA) to take part and display the label on cars that they sell.
The colour-coded label provides easy to read information on a car's make and model along with its CO2 emissions, estimated fuel cost over 12,000 miles and MPG. Dealers can choose only to label cars up to two years old, or to label older cars manufactured as far back as 1st March 2001. 97% of dealers signed-up to date have said they intend to label cars dating back to 2001. Sales by private individuals are not covered by the scheme.
Minister for Transport Sadiq Khan MP said at the launch "Running costs and environmental performance are increasingly important to new and used car buyers. I am therefore delighted that the new car label is now joined by a similar used car label.
This will give people the information they need to make the right purchase for themselves and the smart purchase for the environment. I hope as many dealers as possible will participate and I encourage used car buyers to look out for the label when they consider what to buy."
LowCVP Managing Director Greg Archer said "94% of dealers now display the new car label while 71% of car buyers say the label is important in informing their choice of car. The introduction of the used car label now extends this information to used car buyers."
The used car label is also available to motor industry information providers, with HPI the first company to provide its own approved version.
The used car label has been warmly welcomed by both the AA and What Car? magazine.
AA President, Edmund King said "Motorists are fighting back against high fuel prices by choosing more fuel efficient cars, in fact 62% of our AA / Populus panel say when buying another car they would choose a more fuel efficient one. However, used car buyers are currently kept in the dark regarding fuel efficiency when looking at used cars on dealer's forecourts. In an AA / Populus panel survey 91% supported a fuel economy label on used cars so with this launch they will be better informed about future running costs)".
What Car? editor Steve Fowler said: 'Now more than ever, car buyers want reliable information on the running costs and environmental impact of cars they're looking to buy - a used car economy label gives them precisely that. We know that new car buyers find the new car economy labels tremendously useful, so we hope even more used car dealers will sign up to this excellent scheme".
"Through their approved used car schemes, vehicle manufacturers account for a significant proportion of used car sales so have an important role to play in supporting this initiative," said SMMT chief executive Paul Everitt. "The new car label has proved a successful way of informing buyers about the environmental performance and this extension into the used car market will allow even more buyers to make better comparisons and informed buying decisions."
RMI Director Sue Robinson said "The RMI supports the new 'Used Car CO2 labelling' programme as it better informs retail customers about used car running costs. Therefore the RMI is urging all used car dealers to sign up to this scheme."
DATED: 04.11.09
FEED: AW
BMW upbeat despite fall in profit
German luxury carmaker BMW has reported a sharp fall in third-quarter profits, blaming a fall in consumers spending.
Net profit sank 73.8% to 78m euros ($115m; £70.5m). However, the carmaker said it hoped to make a full-year profit after recent signs of recovery.
Total sales of BMW, Mini and Rolls-Royce brand cars were 7.2% lower at 324,100 in the third quarter.
Over the first nine months of 2009, sales were down 15.7% on a year before, BMW said.
"The measures we have put in place to increase efficiency and reduce costs are taking effect," stated Norbert Reithofer, chairman of the board of management of BMW.
"We are aiming to achieve positive group earnings for the current financial year," he added.
The positive outlook is based on the assumption that the global economy and conditions in the car markets do not worsen before the end of the year.
DATED: 04.11.09
FEED: AW
EU wants aircraft-style black boxes in all cars
The European Union is drawing up plans for £500 aircraft-style black box recorders to be fitted into all cars to help the police identify who is responsible for crashes.
A £2.4 million three-year study by the EU has recommended the mandatory installation of the boxes in all cars. The boxes are fitted behind the dashboard or under the floor and are connected to sensors that monitor a vehicle's movements.
The boxes would record 20 types of vehicle data, including speed, the car's most recent movements and whether the driver braked or indicated.
The information would be used by police and insurance firms to reconstruct crashes and determine who was at fault. It could then be used in court cases.
Researchers also believe the technology will improve safety. The study, called Project Veronica, found drivers with black boxes in their cars were 10% less likely to be involved in a fatal accident, and their repair bills fell by as much as 25%.
The EU says that any decision on whether and how to adopt the technology would be left to individual member states.
However, a spokesman for the Department for Transport said: "The technology raises serious privacy and legal issues and we have no plans to introduce these devices."
DATED: 04.11.09
FEED: AW
Used car prices fall online first at Autoquake.com
The values of used cars are falling and they are dropping faster online than on the forecourt reveals Britain's largest online used car retailer, Autoquake.com.
'After months of rising prices, we're seeing signs that the used car bubble has burst,' said Fredrik Skantze, Autoquake.com's Co-founder. 'Values at auction have begun to slide, and our prices are lower than they were a month ago.'
A car which would have retailed for £10,000 on Autoquake.com a month ago is now typically listed at £9,312, a drop of £688.
The price gap between online retailer Autoquake.com and conventional car dealers is widening. The average price gap between an Autoquake.com vehicle and a car supermarket vehicle is usually 10% and is currently standing at a record 13%.
'As an online retailer, we can react more quickly and follow the movement of the market to ensure consumers get the best value car.' explained Skantze. 'A traditional bricks-and-mortar dealer has money tied up stock and can't just change the windscreen sticker prices of its cars overnight. At Autoquake.com, we can.'
Used car values look set to fall further between now and the end of the year. Glass's, the leading trade price guide, expects prices to drop by between two and four per cent by the start of 2010.
'These lower prices won't last forever,' warns Skantze. 'Early winter is usually a quiet time for the used car market, we expect to see values stabilise or even rise slightly come the New Year. So for anyone who has been put off shopping for a used car because of rising prices, now is the time to buy.'
DATED: 04.11.09
FEED: AW
GM decides to keep Opel
GM cited the improving business environment over the past few months and the importance of Opel and its British unit
DATED: 04.11.09
FEED: ANE
