Friday, December 04, 2009
UK car sales up 57.6% in November
UK car sales rose by 57.6% in November compared with a year earlier, industry figures have shown.
There were 158,082 cars registered last month, the Society of Motor Manufacturers and Traders (SMMT) said, up from a "weak" November 2008.
So far this year, 1.84 million cars have been sold in the UK, 8.8% lower than at the same point last year.
The SMMT said the continuing impact of the UK government's scrappage scheme was helping to drive car sales.
New car sales have increased year-on-year in each of the past five months.
"The increase in new car registrations in November reflects the positive impact of the scrappage incentive scheme, customers avoiding the VAT increase in January and the very difficult conditions we experienced a year ago," said Paul Everitt, SMMT chief executive.
'Uncertain'
The SMMT said that the outlook for the car industry was "uncertain" when the scrappage scheme ends and VAT returns to 17.5%, as well as new first year road tax rates coming into effect in April.
"Much will rest on the wider economic recovery," the body said.
GM plans new small car for India
US car giant General Motors plans to form a new venture with its Chinese partner, SAIC, to focus on the small car market in India.
It aims to produce the vehicles within India itself, making SAIC the first major Chinese company to so do.
GM has said it wants to use India as a small car production base for export.
At the same time, GM announced it would turn over 1% of its biggest Chinese joint venture to SAIC - which would give the Chinese majority ownership.
In a statement, SAIC chairman Hu Maoyuan said: "SAIC and GM are in a strong position to introduce [vehicles] that will satisfy the needs of consumers in India and other high-potential global markets."
New bid made for Volvo
A group led by a former Ford executive has submitted a revised bid to buy the Volvo Cars unit.
The Wall Street Journal has reported that the bid has come from the Crown Consortium, which is led by former Ford director Michael Dingman and Shamel Rushwin, previously a Chrysler executive.
The consortium had been seen as an outsider after Ford nominated Chinese carmaker Zhejiang Geely Holding Group as its preferred bidder for Volvo.
However, WSJ sources said Crown had been encouraged by Ford - if it could find the necessary funding, which is believed to be around $1.8 billion. Ford declined to comment.
GM names Reilly as GM Europe President
False dawn for auto industry as new car sales soar?
On the face of it, the latest UK car sales figures look like great news for the beleaguered auto industry: a total of 158,062 new vehicles were registered in November, a 57.6% increase on the same month last year. However, before we get too excited, it’s worth remembering a couple of things. For one thing, last November new car sales suffered their biggest month-on-month drop of the downturn, so we’re comparing against a very low base. What’s more, people are clearly trying to get in before the end of the Government’s various stimulus schemes early next year, which is also boosting sales artificially. So do carmakers really have any cause for optimism yet?
In truth, the headline figure looks good because car sales were in the doldrums this time last year; by way of context, last month’s sales were about the same level as in November 2007. All in all, about 1.84m new cars have been driven off the forecourts in the first 11 months of 2009, which about 9% down on the same period in 2008. That’s not great, but the industry will tell you that it’s an awful lot better than they feared it would be. (Apparently the Ford Fiesta was the biggest selling car of the month for the tenth time this year - small is clearly beautiful in Austerity Britain).
The principal conclusion we can draw from this is that the Government’s efforts to stimulate demand have obviously worked, at least to some extent. The ‘cash for bangers’ scrappage scheme has clearly persuaded people to trade in their old cars for new ones – it accounted for about a fifth of last month’s total sales. Cutting VAT to 15% has also helped, since that’s quite a decent saving on the cost of a new set of wheels.
The problem with both of these temporary schemes, of course, is that they’re temporary. VAT goes back to 17.5% in January, and the scrappage scheme ends in February (unless industry lobbyists succeed in getting it extended again) – at which point car sales might drop off a cliff faster than Thelma & Louise’s Thunderbird. Time will tell whether these stimulus measures have created additional demand, or just persuaded people to bring forward purchases they would have made anyway. If it’s the latter (as would be our fear), that’s not necessarily a bad thing. But it does mean the car industry could face an equally torrid year in 2010.
DATED: 04.12.09
FEED: MgT
Surrey dealer in court for mis-selling vehicles
A Surrey used car salesman sold vehicles with faulty mileage and worthless warranties to unsuspecting customers, a county court heard.Witnesses told the Guildford court how Godstone Cars owner Mark Phillimore failed to comply with terms of warranties and left customers with cars requiring expensive repairs.
Trading Standards led the civil proceedings against the businessman, who denies charges of breaching the Trade Descriptions Acts and Business Names Act.
The agency told the court it had more than 100 complaints against Phillimore and its dealings with him went back as far as 2004.
Phillimore used a range of trading names after attracting bad publicity including Broughton Group, Godstone Cars and Prestige and Performance.
Prosecuting barrister Jerome Wilcox said: "The complaints continue. He's the sixth most complained-about business in the whole of Surrey, out of approximately 60,000
DATED: 04.12.09
FEED: AM
Overfinch creates new factory sales facility
Overfinch has created a new sales facility at its factory to help customers choose from its range of Range Rover enhancements.
The move follows changes to its distribution network, appointing Park's Motor Group in Hamilton, Scotland and terminating its distribution agreement with Autobrokers in Leeds.
The company said: “Discussions are at an advanced stage to back this up with regional representation by some of the UK's most prestigious dealer groups and an announcement will be made imminently.”
Overfinch has recently launched its most luxurious Range Rover, the £138,000 Holland & Holland Range Rover.
Chief operating officer Neil Underwood said: "2010 is set to be Overfinch's best year yet, with new models based on Land Rover's stunningly good new cars being distributed through sales facilities that reflect Overfinch's status as being to Range Rover what AMG is to Mercedes-Benz and Alpina is to BMW."
DATED: 04.12.09
FEED: AM
False sales leads to jail for dealer
An Irishman accused of running a car dealing racket across the Eire/Northern Ireland border has been jailed for contempt of court.
John Kane, also known as Alex Kane, who runs an SUV dealership in Longford, has been locked up for a week for his "flagrant" disregard of a court order freezing his assets during the investigation.
The court appointed a receiver last July to his business, Kanes of Granard, after a 10m euro judgement was made against them for tax evasion.
However Kane removed cars from the business without the consent of the receiver, and checks showed that other vehicles had been sold to people who didn't exist.
DATED: 04.12.09
FEED: AM
Thursday, December 03, 2009
Administrators in at Lythgoe
Restructuring specialist Zolfo Cooper has appointed Kevin Coates, Simon Wilson, and Anne O'Keefe, as joint administrators of the group.
Citroen and Mazda
Lythgoe holds Citroen and Mazda franchises in Bolton, Oldham and Rochdale. It also has Fiat in Bolton and a service centre in Wardley.
It has sold cars in the Greater Manchester area for 30 years and, as of November, employed 160 staff.
Lythgoe's management sold the Higher Bridge Street branch in Bolton prior to the appointment of the joint administrators.
The joint administrators are talking to potential buyers and said they were "hopeful of achieving a sale of the remaining sites in the near future". A number of interested parties are said to have already submitted offers for the remaining business.
Wardley site
None of the offers received so far have included the Wardley aftersales site and the 31 employees at there have been made redundant. The joint administrators said they would continue to explore options for this site.
Kevin Coates, of Zolfo Cooper, said: "The priority for the joint administrators is to seek a buyer for the remaining sales sites and we are confident of achieving this in the coming days and weeks.
Investment opportunity
"The remaining franchises represent a strong investment opportunity for other players in this market to expand their businesses and we are seeing significant interest from a number of parties.
"The company's key stakeholders have all been very supportive of our early efforts, which show a great deal of confidence in these franchises.
"We're also very grateful to the dedicated, professional employees of Lythgoe, whose commitment to the business and sale, especially in these difficult times, is an invaluable asset."
DATED: 03.12.09
FEED: MT
Spyker breaks cover as SAAB bidder
Spyker, which announced in November that it is relocating its production from the Netherlands to Coventry, confirmed it was in the running and has the backing of its shareholder the Moscow-based Convers Group.
Development
The latest development in the future of ownership of Saab was prompted after Koenigsegg, the Swedish supercar maker, unexpectedly withdrew its bid in November prompting GM to put the business back on the market.
GM evaluating
Yesterday (2 December 2009) GM confirmed it would evaluate potential bids by the end of December and if a suitable buyer was not found it would "begin an orderly wind down of the global Saab business".
Koenigsegg's withdrawal was a bitter blow for GM which is in the middle of an international restructuring process which saw it pull its European operations off the market in November after agreeing to sell them to Magna International. GM has also just lost its president and CEO, Fritz Henderson, after a surprise resignation.
Spyker background
Spyker is primarily known as a specialist supercar maker which builds its cars by hand. It has reportedly made just 300 cars since 2000 when the current company was formed, although it can trace its roots back to 1875.
The brand's relocation of production to Coventry, which is expected to be completed by the end of this month, was prompted by a need to work closer with its supplier partner, CPP (Manufacturing) UK. It will retain head office functions in the Netherlands.
Victor R. Muller, CEO of Spyker Cars stated: "With approximately half of our vehicles' parts and components sourced in the UK, and virtually all key suppliers being located there, moving closer to our suppliers and engineering partners will result in substantial savings and tangible efficiency improvements".
Wednesday, December 02, 2009
GM CEO Fritz Henderson resigns
Fritz Henderson is stepping down as chief executive at US car giant General Motors, the company has announced.
GM's chairman of the board, Ed Whitacre Jr, will serve as an interim replacement.
The news came minutes after the end of a GM board meeting to discuss the fate of its Swedish car brand Saab.
In a statement, Ed Whitacre commended what he described as Mr Henderson's "remarkable job in leading the company through an unprecedented period of challenge and change".
"While momentum has been building over the past several months, all involved agree that changes needed to be made," the statement continued.
He said he looked forward to working with the entire GM team "as we now begin the next chapter of this great company".He assured GM's employees, dealers, suppliers, union partners and customers that it would be business as usual with an emphasis on "a return to profitability and repaying the American and Canadian tax payers as soon as possible".
The White House denied any involvement in the resignation.
"This decision was made by the Board of Directors alone. The administration was not involved in the decision," a White House spokeswoman said.
In March, Fritz Henderson replaced the then chief executive, Rick Wagoner, who was ordered to step down by US President Barack Obama.
Mr Wagoner had headed the company since 2000, after first joining the company in 1977.
Car troubles
Earlier on Tuesday, GM released information that US sales figures for its cars and other passenger vehicles fell 2.2% from November 2008 to 151,427.
In November, the company announced that it was calling off plans to sell its other European business, Opel, along with its UK brand, Vauxhall.
GM had agreed to sell Opel and Vauxhall to Canadian car parts firm Magna, but changed its mind.
In July GM said it had emerged from bankruptcy protection after creating a "new GM" made up of the carmaker's best assets.
Fritz Henderson described it as the beginning of a "new era".
But in November, the company released figures that it had suffered a net loss of $1.15bn (£692.3m) in the period since July.
DATED: 02.12.09
FEED: BBC
SAAB wins temporary reprieve
GM said that due to the emergence of new potential buyers it would evaluate bids for carmaker Saab by the end of December.
GM said that if it did not find a "suitable arrangement" it would then "wind down" Saab.
A group led by Sweden's Koenigsegg Automotive dropped out of a possible takeover and this marked the third failed Saab sale this year.
About 4,500 jobs at Saab are at stake.
DATED: 02.12.09
FEED: ANE/BBC
Monday, November 30, 2009
Scrappage scheme demand double-counted
The Department for Business Innovation and Skills (BIS) has taken down its weekly roundup of order figures from its website and posted a notice saying it is undergoing a "mid-scheme data cleansing exercise". It said it plans to resume publishing them before the end of November.
Double-counting
A BIS spokesperson, contacted by Motor Trader, said the review was prompted after the department learnt that some orders had been mistakenly double-counted.
Typical mistakes included orders staying on the system after they had been cancelled and the double-counting of orders that had been modified by customers. She cited instances of customers changing orders to include sunroofs being counted twice on the system, saying the software had been developed quickly for the scheme's May launch and had not included a facility to change orders.
Halfway mark
"The scheme is now past the halfway mark of the total orders possible under the scheme, therefore it is the right time to undertake a data cleansing exercise on the UK Vehicle Scrappage Scheme database of orders to remove minor errors," she said.
"The scheme will continue to take orders as normal while this exercise is ongoing and the exercise should be complete by the end of this month. Thereafter, BIS will undertake further data cleansing exercises each month and will continue to work with manufacturers to provide order figure updates on a regular basis."
Deliveries
According to the latest SMMT figures 218,735 vehicles had been delivered under the scheme up to 5 November.
The scrappage scheme was extended in September bringing the total funding package up to £400m to cover 400,000 vehicles with a closing date set for 28 February or whenever the funds run out.
DATED: 30.11.09
FEED: MT
Ex-Autoquake boss goes to motors.co.uk
Vacancy
The vacancy at motors.co.uk was created by the departure of Andrew Dyson, after serving three years as managing director. Dyson, who launched the business in 2006, will be assuming a new, but as yet unspecified, role within the organisation.
Background
Hobson will be responsible for growing the business and expanding its market share of the UK motoring advertising market. He has over 20 years of car industry experience having worked at both Pendragon and Inchcape. Prior to joining the Autoquake online car supermarket business in 2007 he was the Northern Europe managing director of Masterlease.
Motors.co.uk was launched in January 2007 and is part of the Associated Northcliffe Digital publishing business owned by the Daily Mail and General Trust.
DATED: 30.11.09
FEED: MT
SsangYong dealers offered Chinese electric scooter franchise
New branding
The plug-in bikes, which are marketed under the new E-motive brand which was launched at this month's Motor Trader Open Points Roadshow, were initially offered to SsangYong dealers to sell but the distributor is now talking to other networks.
Revenue stream
The initiative has been masterminded by Koelliker's UK managing director Paul Williams (pictured) who claimed the bikes offer participating car dealers a low cost additional revenue stream.
"We're offering dealers a 25 per cent margin on bikes which range in price from £1,400 to £4,000 - there's dealers selling mainstream B-sector cars making less margin than that," he said.
Rechargeable
The bikes, which are specially prepared by Koelliker for the UK market, have a 50-55 miles range and can be recharged using a domestic supply.
"There's no entry cost to the franchise. We just ask for a £3,000 refundable deposit against two demonstrators which are registered by us. We're only just starting to go outside the SsangYong network," he said.
Future products
Williams said the scooters are the first of a number of possible electric vehicles, including passenger cars and LCVs, which Koelliker is considering bringing to the UK.
DATED: 30.11.09
FEED: MT
GM to boost Ellesmere Port production
The carmaker said the consultation process with each individual manufacturing plant in Europe has now begun. This process will continue over the next month to finalise details of the future plan for Opel/Vauxhall across Europe.
Welcome news
The first step in this process sees Ellesmere Port, where the new generation Astra is currently being built, move to a three shift production operation in 2011. This is welcome news for a plant which facead the prospect of job losses.
"To support the launch in 2010 of the new Astra Sports Tourer and to prepare for the third shift introduction in 2011, the plan is for no redundancies as all current labour would need to be utilised to staff the third shift," said a GM statement.
DATED: 30.11.09
FEED: MT
Vauxhall job cut plans unveiled
Job losses at Vauxhall in the UK will total 354, according to proposals outlined by owner General Motors (GM), which was less then had been feared.
Under the plans, all the jobs would go at Vauxhall's Luton plant.
There would be no cuts at its Ellesmere Port plant, which makes the Vauxhall Astra, as it hopes to increase production at the site.
Vauxhall employs 5,000 staff in the UK. The carmaker stressed that no final decision had been taken on job cuts.
On Wednesday, GM said it would cut 9,000 jobs across Europe as part of its restructuring plans, with the majority going from Opel's German workforce.
However, it said it planned to cut 5,425 jobs in Germany, 2,321 from its Antwerp plant in Belgium and 900 from its Zaragoza plant in Spain.
GM has said it expects to consult with plants across Europe before making a final decision on where exactly jobs will go next month.
Improved deal?
There had been fears that far more jobs could be lost in the UK.
In October, the Unite union said it had reached a deal with the then proposed new owner of Vauxhall, car parts maker Magna, which would have seen about 600 jobs go, all through voluntary redundancy.
However, earlier this month GM cancelled the sale of its European arm to Magna, citing "an improving business environment" as the reason for holding onto Opel and Vauxhall.
Vauxhall currently employs 1,458 people at its Luton plant, which makes the Vivaro commercial van, and 2,166 people at its Ellesmere Port plant, where the Vauxhall Astra is made.
Vauxhall is due to launch its new Astra model next year.
"The proposed plan is for Ellesmere Port to move to a three-shift production operation in 2011," the company said in a statement.
The firm cut one of its three shifts in 2006.
"To support the launch in 2010 of the new Astra Sports Tourer and to prepare for the third shift introduction in 2011, the plan is for no redundancies as all current labour would need to be utilised to staff the third shift," Vauxhall said.
Former Rover bosses pay back £3m
The company owned by the ex-bosses of MG Rover has paid back some of the millions of pounds taken out of the car maker, the BBC has learned.
Phoenix Venture Holdings, the firm owned by the so-called "Phoenix Four", paid £3m to the liquidator almost five years after the firm's collapse.
It is understood it agreed an out-of-court settlement after investigations by inspectors and liquidators.
The Longbridge-based firm collapsed in 2005, with the loss of 6,000 jobs.
'Agreement reached'
When the so-called Pheonix Four were in charge of MG Rover, some of the car maker's assets were effectively transferred to Phoenix Venture Holdings (PVH).
In September, a report into MG Rover's collapse revealed a number of transactions that liquidators and inspectors have been looking into.
BBC Midlands Today transport correspondent Peter Plisner said a report compiled by the MG Rover liquidator "clearly shows a payment of £3m which I understand has come directly from PVH."
A statement from PVH said: "All inter-company transfers were approved by the company's accountants and professional advisers and were part of normal business."
It also confirmed that "negotiations with liquidators regarding the transfers" had taken place and that "an agreement has been reached which will further benefit creditors of MG Rover".
The government-commissioned report found the bosses had awarded themselves pay and pensions worth £42m, which was described by inspectors as "out of all proportion".
In September, the long-awaited report into the collapse of the UK's last major car firm said its bosses had given themselves "unreasonably large" pay-outs.
However, the executives described the report, which cost £16m, as a "witch-hunt" and a "whitewash for the government".
The Serious Fraud Office previously said it did not intend to begin a criminal investigation into the collapse of MG Rover.
Mercedes and Renault join forces
Mercedes-Benz and Renault are to co-operate on a new modular small car platform and two separate engine ranges that will form the basis of a new range of Smart models and a new line of Renault city cars.
The platform is a rear-engined, rear-drive chassis already under development by Mercedes. It will be used in the next Fortwo, due in 2013, and for a replacement for the Forfour that's scheduled to arrive in 2014.
In lightly modified form - the wheelbase and track widths are variable - the platform will also be used by Renault for a new range of entry-level models, including the Twizy electric car and a four-door based on the Zoe concept.
It is unclear whether Renault-owned Nissan, Dacia and Samsung will have access to the new platform. Nissan has been considering a new entry-level model positioned beneath the Micra, possibly to be produced at its Sunderland plant in the UK.
Mercedes and Renault are also planning to share new engines. Initially Mercedes will provide Renault with three-cylinder petrol and diesels, both with stop-start systems.
The new engines, which are said to be different to Smart's current powerplants, have been designed specifically for the rear-drive platform. They will be fitted to a six-speed manual gearbox or a seven-speed double-clutch transmission.
Later, the two firms will work on a range of new sub-1.8-litre four-cylinder petrol and diesel engines. These will be used in higher-end versions of the Forfour, as well as the next A and B-classes and future generations of the Twingo, Clio, Modus, Mégane and Scenic.
Owing to the similarity in mechanical layout, it's likely that the new Forfour will be built by Renault alongside its new four-door model, at one of its existing plants. The Fortwo will be manufactured at Smart's plant in Hambach, France, and it could be joined there by Renault's city car.
As part of their deal, Mercedes and Renault are also planning mild hybrid and electric versions of their new models, although at this stage it remains unclear just which company is set to head the development.
Fresh bids for SAAB not expected
General Motors Co. doesn’t expect to find new bidders for Saab, according to reports by financial news agency Bloomberg.
The carmaker may shut the bankrupt unit after Koenigsegg Group AB canceled a planned acquisition, Bloomberg cites people familiar with the matter as saying.
Saab’s future will be decided at a Dec. 1 GM board meeting.
While directors might opt to keep the Swedish division, as they did with the Opel unit this month, GM has a contingency plan that calls for winding down the brand, the people said.
DATED: 30.11.09
FEED: AM
Inchcapes Ainsley to Caffyns
Guy Ainsley, former marketing director of Inchcape Retail UK, has been appointed operations director of Caffyns.
The south of England car dealer group recruited Ainsley in September.
Ainsley had been at Inchcape between 2000 and 2003 including roles as development director of Inchcape Retail and general manager of Inchcape Financial Services.
DATED: 30.11.09
FEED: AM
Automotive Council members named
Lord Mandelson has revealed the members of the new automotive council which will help set a long-term plan for the development of the industry.
There are no car dealer representatives on the council.
Will the new Automotive Council be effective in speaking for the needs of the automotive industry without dealer group representation?
It had already been revealed that while the council would take into account all aspects of the motor industry, the members were more likely to have a strong representation from the manufacturer side.
The Automotive Council was announced earlier this month as part of the Government’s response to recommendations made in the industry-led report from the New Automotive Innovation and Growth Team (NAIGT).
A supply chain council and a technology council will also be set up as part of the Automotive Council which will address the strategic challenges facing the car industry over the longer term.
The Automotive Council will be jointly chaired by Lord Mandelson and Richard Parry Jones (ex-Ford), who also led the NAIGT. The other members are:
- David Smith (deputy) Jaguar Land Rover
- Gordon Murray (deputy) Gordon Murray Design
- Joe Greenwell Ford
- Bill Parfitt GM
- Kenneth Keir Honda
- Trevor Mann Nissan
- Jürgen Hedrich BMW
- Graham Smith Toyota
- Jon Carling Aston Martin
- Franz-Josef Paefgen Bentley
- Dave Keene RDM Automotive/Niche Vehicles Group
- Gwenne Henricks Perkins Engines
- Andrea Paver Leyland Trucks
- Hermann Kaess Robert Bosch
- Nigel Stein GKN Auto
- Jerry Hardcastle Nissan
- Barry Dodd Addpower Technologies
- Paul Everitt SMMT
- John Miles ARUP
- Dave Osborne Unite
- Brian Collins chief scientific adviser, BIS & DfT
The first meeting of the Automotive Council is expected to be held in December.
DATED: 30.11.09
FEED: AM
Industry leaders discuss UK's automotive future
The future of the UK motor industry will be discussed today by more than 120 industry leaders, Government and stakeholders at the first Society of Motor Manufacturers and Traders (SMMT) International Automotive Summit at the QEII centre in Westminster.
Paul Everitt, SMMT chief executive, said: "The SMMT Summit provides industry with a unique and valuable opportunity to look beyond recession and shape the future of the UK’s automotive sector.
"This year has presented unique challenges for the industry and has demonstrated the value of a collaborative approach."
Lord Peter Mandelson, secretary of state for business, innovation and skills, will speak on the contribution that manufacturing makes to the UK economy (turnover exceeds £52 billion annually) and the Government’s commitment to the sector, building on its recent acceptance of key strategic recommendations made by the New Automotive Innovation and Growth Team (NAIGT).
In addition to Lord Mandelson, 14 others will speak, including: Richard Parry-Jones (NAIGT chairman), Ravi Kant (Tata Motors vice-chairman), Mark Prisk (Conservative shadow business minister), Professor Neville Jackson (Ricardo group technology director), Joe Greenwell (Ford of Britain chairman, SMMT president) and Paul Everitt (SMMT chief executive).
These speakers will address:
- The UK as a location for automotive investment.
- The outlook for UK automotive manufacturing and how to attract investment to ensure future employment and prosperity.
- Technology challenges for developing cleaner, safer, more fuel-efficient vehicles.
- Development of ultra-low carbon vehicles and related consumer buying behaviour.
