F&I Management & Training

Richard Burden, the Labour MP for Birmingham Northfield, whose constituency covers the car plant in Longbridge, said the former bosses, nicknamed the Phoenix Four, had the means to solve the impasse.

However, the former owners now say the money laid aside to cover the £12.5m payout they promised is at risk after a bank came forward to claim a debt.

HBOS, a part of Lloyds, which is 41 per cent owned by the Government, has called in a £23m debt after losing millions in the firm.

The Phoenix Four said the HBOS claim jeopardised the trust fund and said it was "fundamentally and morally wrong".

They said it was a "spurious" action which would prevent 6,000 car workers who were made redundant at the Midlands factory from getting the money that they were promised.

HBOS said it had a duty to recover any losses it had incurred and said that the Phoenix Four were not in a position to promise money to former staff which they already owed to someone else.

Others, including the MP, suggested the accusation was a smokescreen intended to mask the fact that all the Phoenix Four's promises about a fund for workers who lost their jobs have, to date, proven empty.

Mr Burden said: "The Phoenix Directors still have it in their power to end the delay and to get money into the Trust Fund for their former employees.

"They have already had to wait five years - and that's five years too long.

"The Phoenix Directors awarded themselves millions of pounds over the years from their involvement with MG Rover and related companies.

"That money does not appear to have been held up by any possible claims from HBOS. So there is no reason to hold up why money due to former employees who have already lost so much."

Skoda Auto Russia announced it has begun full-cycle production of the new Skoda Fabia at the Russian launch of the car on April 28 at its Kaluga factory. The Skoda Fabia has become the second model in the Skoda range to be produced in full-cycle at the factory, which includes welding, painting and assembly. The previous Fabia model was built at Kaluga factory by SKD. The first model to change to a CKD-production was the Skoda Octavia.

Fabia is a best-selling model of Skoda's range in the Russian and global markets. In 2009, 264,173 Fabias were sold globally; an increase of 7.1 per cent on the previous year. The Fabia was Russia's best seller in 2009.

"Over the past few years, Skoda has been very successful and record sales were once again achieved in 2009. A main contributing factor for this market growth is the continued development in areas such as Russia, India and China. With our investments in Kaluga production, dealer network and products we will continue to strengthen our position in the Russian market," said Reinhard Jung, head of Skoda Auto board of directors.

Petr Janeba, Head of Skoda Russia added: "Russia is one of the key markets for Skoda and we expect to see sustained future growth. One of our primary objectives is to increase our production capacities and we are already achieving success in this as all Skoda models are produced at the Russian factory in Kaluga; providing attractive price-quality ratio to our clients, faster reaction to the local market changes and to our Russian customers' requirements. In October 2009, we started full-cycle production of the Skoda Octavia and today we are ready to announce the start of the second model production by CKD.

"The Skoda Fabia is such a popular vehicle in the Russian market and we happy to say that it is now the second all-Russian car of our brand. We are pleased to showcase it for the first time at our factory!"

Severe weather conditions that hit the UK earlier this year took their toll on roads, leaving motorists today navigating a pothole hell. In the final days before the general election, an Exchange and Mart survey reveals that 62% of voters believe Labour's pledge of £100m to repair roads is not enough. Exchange and Mart calls for next week's elected party to take clear focus on motoring to tackle congestion, rising costs and crumbling roads, as well as bolder steps to reduce CO2 emissions.

The Exchange and Mart survey reports that motorists were disappointed with Labour's Budget plans to deal with the UK's roads. However, none of the main competing parties seem to be offering much promise for UK motorists in the lead up to the election. Rising fuel prices, the end of the scrappage scheme and emissions based car tax means motorists are feeling the pinch.

When asked if Labour's plans to stagger the fuel tax increases over the next year will do anything to soften its financial impact 61% said no. In the Budget, Alistair Darling also pledged £285m for motorway improvements and expansion projects, but the majority of those survey said "It's not enough!"

In contrast, the Liberal Democrats have voiced their commitment to investing in rail whilst reducing carbon emissions by introducing more steeply graduated VED for cars with higher emission engines, which is unlikely to be a vote winner for motorists. Meanwhile, the Conservatives are planning more tolls on new roads, but oppose road-pricing.

"Our survey goes to show just how low morale is for British motorists," says Debra Healy, Digital Director of Exchange and Mart. "For most motorists it costs too much and road conditions are poor and unsafe. The hard winter has left the roads in a terrible state and more snow and bad weather over Easter has just highlighted the problem.

"It's clear from our survey that UK motorists aren't happy with the condition of the roads and many would like to see better value for their road tax. However, none of the main parties seem to be focusing on the motorist, making it a difficult decision for voters looking to reduce costs on their car."

It said a number of members have contacted it with concerns about their relationship with manufacturers and the pressure that some manufacturers are currently putting on dealers, particularly in respect of corporate identity and multi-branding.

The NFDA is currently in discussions with the Office of Fair Trading over Peugeot's Blue Box scheme. It is understood that Peugeot is witholding margin on dealers who do not invest in the Blue Box.

"Even though the current Block Exemption has been extended until 2013, manufacturers are trying to impose new standards that go against the current Regulation.

The NFDA said, in particular, pressure is being brought to bear on dealers who have more than one franchise in a showroom as well as manufacturers ratcheting up standards.

"We are asking members to keep us informed of any problems they are encountering in this respect.

"We are currently in communication with the Office of Fair Trading regarding the Peugeot ‘Blue Box' concept.

"We will also refer any other similar issues to them. Further, MEPs and the Commission have asked that we keep them aware of any cases where manufacturers are putting pressure on dealers."

DATED: 05.05.10

FEED: MT

The SAF programme was introduced by the Finance & Leasing Association (FLA), the industry body for the motor finance industry, in 2007 to raise standards across the industry and to improve consumer confidence.

All point of sale dealership employees are required to sit and pass a test of their knowledge of financial services products and industry regulation.

Once every individual in each dealership has passed, the dealership becomes SAF Approved, then once every dealership achieves SAF status, the dealer group gains accreditation and can display the SAF branding throughout the dealer network and throughout all marketing and customer communications.

This ground-breaking approach has been backed by the Financial Services Authority (FSA), the Office of Fair Trading (OFT) and Retail Motor Industry Federation (RMIF).

Paul Harrison, head of motor finance at the FLA said: "The SAF programme is helping to improve customer confidence in motor finance when visiting a car dealership. By having full SAF approval staff are recognised to have been correctly trained, to a high standard.

"This also encourages staff to improve their overall knowledge and is crucial to building trust between the company and the customer."

DATED: 05.05.10

FEED: MT