Monday, November 16, 2009
GM to start loan repayments early
The US carmaker General Motors (GM) has said it will start paying back its government loans earlier than expected.
It will make its first payment of $1.2bn (£717m) to the US government in December. GM had not been required to begin repaying the loan until 2015.
The news came as it reported a loss of $1.2bn from 10 July, when it emerged from bankruptcy, to 30 September.
GM chief Fritz Henderson said the firm still had work to do but the results were evidence of a "solid foundation".
He pointed out that GM had a healthier balance sheet with lower debt levels.
GM owes the US government $6.7bn and the Canadian government $1.4bn. Canada will also receive its first payment in December.
In addition, Germany will be repaid the outstanding 400m euros (£358m) that it lent in support of GM's European business Opel.
GM changed its mind over the sale of Opel earlier this month. It had been planning to sell it to a group led by the Canadian car parts maker Magna, but decided instead to retain ownership.
'Modest growth'
Sales in the US were boosted by the government-sponsored "cash for clunkers" incentive scheme.
GM said the market in China was proving to be a particularly strong contributor to its results. It is predicting "modest growth" in the global car industry in 2010.
In a conference call, Mr Henderson said GM, which is 61%-owned by the US tax payer, was preparing for a share offering in the second half of next year.
Pendragon looks to a bright future
Pendragon, the UK's largest dealer group, is back from the brink and looking to a bright future characterised by 'less arrogance and more humility' as it celebrated its 20th anniversary in business.
The company marked its birthday with 350 high-powered motor industry and financier guests at a special dinner at London's Landmark Hotel.
Chairman Nigel Rudd admitted that the fallout from the economic downturn had been the worst he's experienced. He said: "I've never seen a business implode so quickly."
Pendragon has already closed or sold 53 dealerships as well as removed more than 3,000 jobs in a £60 million cost reduction programme.
PSA moves into car rental to gain market share
PSA Peugeot Citroen is to offer prepaid cars by the day to young city dwellers as part of the French motor company's drive to regain market share and enhance the appeal of its brands with consumers and investors.
The new business, branded Mu, is to be launched in Paris, Berlin and Amsterdam this winter and will reach Britain before the summer.
Within less than a year, Londoners will be offered 'pre-paid mobility on demand' from Peugeot dealerships through a payment card that offers consumers the choice of a car, a small van or a scooter for a day or a weekend.
The Mu concept is targeted at young people in cities and is aimed at generating income from the stock of vehicles sitting at dealerships, a huge drag on dealer profitability.
Mu customers will be able to load mobility points on to a card which entitles the user to a vehicle.
The pilot schemes in France, offer a Peugeot 207 for 280 points per day, a cost of 56 euros. For about the same cost consumers can rent a Peugeot scooter for three days, and for 25 units, or 5 euros, a bicycle for a day.
Sunday, November 15, 2009
Mathematical Progress, 1970 to present day
1. Teaching maths in 1970
A logger sells a truckload of timber for £100. His cost of production is 4/5 of the price. What is his profit?
2. Teaching Maths In 1980
A logger sells a truckload of timber for £100. His cost of production is 80% of the price. What is his profit?
3. Teaching Maths In 1990
A logger sells a truckload of timber for £100. His cost of production is £80. How much was his profit?
4. Teaching Maths In 2000
A logger sells a truckload of timber for £100. His cost of production is £80 and his profit is £20. Your assignment: Underline the number 20.
5. Teaching Maths In 2005
A logger cuts down a beautiful forest because he is selfish and inconsiderate and cares nothing for the habitat of animals or the preservation of our woodlands. Your assignment: Discuss how the birds and squirrels might feel as the logger cuts down their homes just for a measly profit of £20.
6.. Teaching Maths In 2009
A logger is arrested trying to cut down a tree as it may be offensive to any ethnic or religious group not consulted in the felling licence. He is fined £100 as his chainsaw is in breach of Health and Safety legislation, deemed too dangerous as it could cut something. He has used the chainsaw for over 20 years without incident but he does not have the correct certificate of competence and is therefore considered to be a recidivist and habitual criminal. His DNA is sampled and his details circulated throughout all government agencies.
He protests and is taken to court and fined another £100 because he is such an easy target. When released he returns to find Gypsies have cut down half his wood to build a camp on his land. He tries to throw them off but is arrested, prosecuted for harassing an ethnic minority, imprisoned and fined a further £100.
While he is in jail the Gypsies cut down the rest of his wood and sell it on the black market for £100 cash. They have a BBQ of native wildlife and depart leaving behind several tons of rubbish and asbestos sheeting.
The forester is warned that failure to clear the fly tipped rubbish immediately at his own cost is an offence. He complains and is arrested for environmental pollution, breach of the peace and invoiced £12,000 plus VAT for safe disposal costs by a regulated government contractor.
Your assignment: How many times is the logger going to have to be arrested and fined before he realises he is never going to make £20 profit by hard work, give up, sign on the dole and live off the state for the rest of his life?
7. Teaching Maths In 2010
A logger doesn’t sell a truckload of timber because he can’t get a loan to buy a new truck as his bank - Lloyds, of course - has spent all his and their money on a derivative of securitised debt related to sub-prime mortgages in America and lost the lot with just enough government money left to pay a few million pound bonuses to senior directors and the traders who made the biggest losses.
The Government borrows more money to give to the bankers as bonuses are not cheap. The parliamentarians feel they are missing out and claim what's left on expenses and allowances. The logger struggles to pay the £1,200 road tax on his old truck. However, as it was built in the 1970s it no longer meets the emissions regulations and he is forced to scrap it.
Enterprising East European loggers buy the truck from the scrap merchant and put it back on the road. They undercut everyone on price for haulage and send their cash back home, while claiming social security benefits for themselves and their relatives. When questioned they speak no English and it is easier to deport them at the government’s expense.
Following a holiday back home they return with different names and a few girls and start again in a lucrative branch of the entertainment business. The logger protests, is accused of being a bigoted racist and fined £1,500.
Unlike most fairy tales this is close to the truth. Two days ago my cash card was stolen by some ingenious souls. The lady at Lloyds said: "It's terrible round here. There are gangs of East Europeans doing this all the time. Always go inside to get cash."
What the story demonstrates, of course, is that government policy has systematically ruined education, killed enterprise, discouraged hard work and encouraged us to see all immigrants as crooks, which most are not - as anyone who, like me, has employed a Polish plumber, knows.
DATED: 15.11.09
FEED: DB
IMI is relicensed as Sector Skills Council
It is one of 25 SSCs in the UK that help employers in different industries exert influence on the UK's education and skills systems.
The relicensing received broad support from motor trade bodies.
SMMT chief executive Paul Everitt said: "We have been impressed by the IMI's progress in many areas, not least the development of initiatives such as the careers web portal, Autocity to promote careers in our sector and the progress made on Automotive Technician Accreditation (ATA).
RMI support
Retail Motor Industry Federation chairman, Paul Williams said: "It was vital that the retail motor industry retained its own dedicated Sector Skills Council and we are delighted that the industry, via employers across the retail, parts, accident repair & motorcycle sectors have championed this result allowing the IMI to lead on the skills agenda.
Scottish Motor Trade Association chief executive Douglas Robertson said: "The SMTA are delighted that the IMI has been relicensed as Sector Skills Council and has our admiration and respect for the very significant progress made since taking over the role of SSC in 2007."
Long process
An SSC assessment is a long process. It is carried out by the National Audit Office, which collects evidence, including employer testimonies, to produce a report.
The report is considered by the UK Commission for Employment and Skills, which makes a recommendation to ministers on whether to license or not.
An SSC may appeal against the recommendation made by the commission but not against the final ministerial decision.
DATED: 15.11.09
FEED: MT
