F&I Management & Training

General Motors says it will spend 1.9bn euros ($2.6bn; £1.7bn) to restructure its European unit Opel - three times more than it had first pledged.

GM estimates that Opel - which includes the UK's Vauxhall business - needs 3.3bn euros to be turned around.

The carmaker is now asking that European governments put up loans and guarantees worth 2bn euros, down from 2.7bn euros.

GM hopes to have Opel back to profitability by 2012.

'Strong commitment'

"We have shared this decision with the European Commission as well as the national and state governments involved," said Opel chief Nick Reilly.

"We hope that our strong commitment will be well received as a major milestone in our ongoing discussions about government guarantees to cover the remaining gap."

The carmaker had asked for about 60% of the total aid to come from the German government, on the basis that 60% of the company's employee costs of almost 50,000 are incurred in Germany.

Reports have said that Germany wanted more funding to come from GM before it committed to providing aid.

"Beyond the purely financial aspects, we see this as a major step towards instilling renewed trust and confidence into Opel/Vauxhall's customers, employees, business partners, unions, dealers and European governments," said GM chairman Ed Whitacre.

Five minutes to fill up a conventional car at the pumps versus five hours to charge an electric car, is just one of the challenges of the "electric car revolution". The switch from petrol and diesel cars to electric vehicles will be a giant leap and needs pioneers to lead the way, according to the AA president addressing Durham County Council today (2/03/10).

Edmund King will argue that there is a role for Electric Vehicles (EVs) but that local authorities are essential to help progress with:

• The need for pioneers


• The need for early adopters - fleets - local authorities


• The need for incentives - national and local i.e. free parking


• The need for infrastructure - charge points


• The need for planners with vision


• The need to overcome range anxiety


• The need to address cost of batteries, safety issues


• The need for quick charge (5 minutes to fill up petrol v 5 hour EV charge)


• The need a change of attitudes towards vehicle ownership.

King also points out that we will remain reliant on petrol and diesel for many years, giving vehicle manufacturers the opportunity to develop technology for electric vehicles. But depleting oil supplies and increasing demand mean now is the time to develop a good, sustainable, alternative and get drivers used to a completely different method of propulsion/use. Now drivers need to see some direction in a replacement for their existing cars, even if mass electrification is a little way off.

General Motors (GM) is recalling 1.3 million small cars in North America because of a power steering problem that has been linked to 14 crashes.

The firm said four models were affected - the Chevrolet Cobalt, Pontiac G5, Pontiac Pursuit and Pontiac 4.

It said the fault meant that at low speeds "greater steering effort may be required", but that the cars could still be "safely controlled".

GM blamed the fault on a supplier partially owned by Toyota.

GM vice-chairman Bob Lutz told the BBC at the Geneva Motor show: "This is a case where, yes, we would blame a partially Toyota-owned supplier."

Mr Lutz said the supplier had not met "all requirements for reliability and durability".

"So we will have to see who takes financial responsibility," he said. "But this is a risk you sometimes take when you buy a complete system from a supplier."

Complaints

GM said it had told the US car safety regulator - the US National Highway Traffic Safety Administration (NHTSA) - about the recall on Monday when it finished an investigation that started last year.


The NHTSA itself had been investigating the problem since 27 January after receiving more than 1,100 complaints, including 14 crashes and one injury.

The recall covers the 2005 to 2010 model year Chevrolet Cobalt, and 2007 to 2010 Pontiac G5 sold in the US.

In addition, it includes the 2005 to 2006 Pontiac Pursuit sold in Canada, and the 2005 to 2006 Pontiac G4 sold in Mexico.

"After our in-depth investigation, we found that this is a condition that takes time to develop," said GM vice president of quality, Jamie Hresko.

"It tends to occur in older models out of warranty. Recalling these vehicles is the right thing to do for our customers' peace of mind."

The Bramall and Jones business, owned by industry stalwarts Tony Bramall and Peter Jones, who formed the business after selling CD Bramall to Pendragon in 2002, consisted of three Audi sites in Boston, Lincoln and Grimsby and employed 155 staff all of whom transfer to the new business. Bramall became chief executive of Lookers in October 2009 while Bramall is a non-executive director.

Expansion
The acquisition brings the family-owned JCT600 Group, number 13 in the Motor Trader Top 200, up to 47 dealerships throughout Yorkshire, Derbyshire, Lincolnshire and the North East and employs over 1,350 people across the region. It represents 20 brands including Aston Martin, Bentley, BMW, Ferrari, Maserati, Mercedes-Benz, Porsche and Volkswagen.

The acquisition of Bramall and Jones, number 100 in the Motor Trader Top 200, which includes the three freeholds, follows the purchase of Hull and York Audi last August which marked the car brand's debut with the group.

Opportunity
"This provides us with another fantastic opportunity with Audi, one of the world's leading car manufacturers," said JCT600 chief executive John Tordoff.

"From York in North Yorkshire, through to Hull and Grimsby on the East Coast and south through Lincoln to Boston we now have a huge geographical area to control. These areas are prosperous, and have proved extremely resilient in the present economic climate. The three new dealerships are all very successful and the teams in place have a wealth of experience and expertise."

Talking to Motor Trader Tordoff said the group had not been actively looking to acquire sites but saw it as an opportunity to boost its fledgling Audi business. He would not rule out further purchases.

Turnover
The deal was supported by Lloyds TSB Corporate Markets and is expected to see the three new additions contribute around £80m to the group's turnover that is expected to top £550m in 2010.

The JCT600 group has weathered the credit crunch by adapting its stock levels and investing in used car stock and online sales resources. The firm said it now sells around 40 per cent of its used cars online through its website and increased its used car sales by 20 per cent in 2009.

DATED: 02.03.10

FEED: MT

Irresponsible firms who allow their road works to overrun will face penalties of up to £25,000 a day - a tenfold increase on the current £2,500 maximum daily charge - under plans published today by Transport Minister Sadiq Khan.

The Government also set out proposals for a tougher inspection regime giving local councils more powers to charge utility companies for inspecting road works in their streets.

Sadiq Khan said:
"These new measures show just how serious the Government is about tackling problem road works which cost our economy £4.2 billion each year.

"There is no excuse for those companies who allow their works to drag on for longer than they should, causing inconvenience and frustration for the travelling public. The new charges and tougher inspection regime will provide a strong incentive for utilities to finish works on time or pay for the disruption they cause."

The proposals are intended to provide utility companies with a strong incentive to finish works on time. Utility firms will not be permitted to pass the cost of these charges on to their customers.

The new inspection regime will mean that utility firms that consistently fail to keep their sites safe, or fail to replace the road surface properly, could be required to pay for additional inspections by local councils.

Today's announcement forms part of the Department for Transport's street works action plan published in December 2009. The action plan aims to reduce the disruption caused by street works and today's consultations will be followed shortly by announcements on improving safety at road works sites by updating an existing Safety Code of Practice.

Volkswagen (VW), Europe's biggest car maker, has reported an 80% fall in profits for 2009 partly due to a fall in profit margins.

The company made a net profit of 960m euros ($1.31bn; £864m) last year, but said it expected operating profit and sales to recover this year.

Sales slipped by 7.6% in 2009, but the company retains its ambition to become the world's biggest car maker.

Despite the sales drop, VW benefitted from car scrappage schemes.

It is also doing well in economically-strong China, which is now its biggest market.

Growth

The business is expanding in both Europe and the Far East.

Earlier this month, VW said it would buy a 20% stake in Japan's Suzuki Motor for 222.5bn yen ($2.5bn; £1.5bn).

Suzuki said it would take a stake in VW in return, spending "up to one half" of the funds it receives on VW shares.

Jaguar Land Rover turned in a profit of £55m in the last three months of 2009 after a loss of £60m in the previous quarter.

The company's owner, India's Tata Motors, said the bounce back was thanks to stronger market conditions.

It added that its range of new models had helped its performance.

Its sales jumped 68% from a year earlier to more than 165,000 models, with most of the growth coming Russia, Europe, North America and China.

Coming closures

Tata, which bought the business from Ford in 2008, said cost-cutting also boosted results and it plans to make further changes to the business.

On Thursday, Tata said it had received a £340m loan from the European Investment Bank to finance research into more energy-efficient car bodies.

Jaguar Land Rover employs 14,500 staff in the UK but Tata is deciding whether to shut its factory at Castle Bromwich in the West Midlands, which makes Jaguars, or the site at Solihull, which makes Range Rovers.

Wage cuts

It does, though, plan to create up to 800 new jobs at Halewood on Merseyside, where a new Range Rover will be built.

The company wants to trim the wages of new employees by 20%, and close its final salary pension scheme to new members.

Talks with unions over pay and pensions recently broke down.

Earlier this month the company's chief executive, David Smith, stood down.

The firm said his departure was not linked to the recent talks breakdown.