Southern Finance is embarking on a drive to gain a higher share of dealer finance following its acquisition by R Raphael & Sons, a private bank.

Since 2005 it has been part of the privately owned Lenlyn Group alongside Raphael.

Miles Roberts, who joined Southern Finance as managing director in 2005, left to become chief executive of Raphaels Bank last year.

Now, Roberts intends to become more directly involved in Southern Finance again.

He is optimistic about Southern Finance’s prospects as a part of Raphaels because, he said, new funding demonstrates its continued commitment to motor finance sector.

The aim is to retain the Southern Finance brand name in the automotive business sector – Raphaels has been in the consumer finance business for several years.

“Southern Finance used to be a purely hire purchase company, but now, working with a broader spectrum of lenders, we are able to offer a much wider range of products,” said Roberts.

“Consumer appetite for flexibility hasn’t changed but, given the shrinkage in the number of motor finance companies, there is less choice for dealers and consumers.

“The motor finance market has changed radically over the last couple of years.”

Southern Finance will continue to lend direct, but also broker finance with a number of other finance providers – though not named they are well established partners, said Roberts.

“This means we will be able to give dealers access to the complete range of finance options, from PCP and leasing to lease purchase,” he said.

“We can capitalise on the enormous consolidation that has occurred in the sector.”

DATED: 16.06.10

FEED: AM

The former Head of Product Classifieds at Auto Trader has joined the UK's second biggest online car retailing network motors.co.uk as the business launches a revolutionary new website and advertising campaign.

The appointment of David Hearns as Product Director at motors.co.uk is the latest in a series of senior appointments at the rapidly expanding company as it pursues ambitious plans to become the number one choice for consumers looking to buy a used car.

Mr Hearns, who has worked for some of the UK's biggest classified sites including Yell.com, Fish4 and Teletext Holidays in addition to (15 months) his time at Auto Trader, will have responsibility for product development and the management of existing products on the company's new look website.

Motors.co.uk launched in 2007 and has quickly grown to become the UK's second most visited used car network behind Auto Trader. To achieve further growth, the business has launched a major national advertising campaign featuring words of wisdom from new brand icon - Motor Sensei.

Developed by the creators of the Compare the Meerkat adverts, VCCP, Motor Sensei will feature across the new brand creative and will provide buyers with a trusted source of guidance and advice to help them find their next car.

In his new role, David will be instrumental in developing a number of products for the new website's growing dealer base as well as driving improvements to the user experience to help increase sales.

Commenting on his appointment, David said: "This is a great opportunity to bring an established player to the forefront of the market and to become a strong challenger to Auto Trader and other online used car retailers. My ambition is to build on the business’ strong product offering and to work with the development team to continually look for ways to improve the user experience for both consumer and trade customers.

"Having worked for a number of the major classified advertising agencies and the biggest automotive site in the UK, I have gained a very sound commercial understanding of how classified business works and I plan to help motors.co.uk increase their market share and secure their position as the UK's second largest online automotive classified supplier."

Yesterday marked the fifth anniversary of the launch of the Automotive Technician Accreditation scheme, which now has more than 23,000 registered individuals.

The initiative, developed by the industry and driven by the Institute of the Motor Industry, was launched on June 15 2005 with 500 registered technicians.

ATA proves a technician’s competence, giving reassurance to customers as well as raising the professional status and credibility of skilled individuals and their businesses.

Steve Scofield, head of the Accreditation Academy said: "Back in 2005, the only route offered was that of light vehicle technician, but now increased industry demand for accredited personnel means there are now 11 routes across the sector from air-conditioning to vehicle damage assessor."

ATA fits various standards across the industry including accident repair – PAS125 and as ATA accreditation lasts for five years, the IMI is starting to see the first cycle of re-accreditation.

The IMI is dedicated to making UK motorists aware of ATA as the universal standard of competence to look for within the motor industry and we are working hard to build consumer awareness of ATA registered individuals and those who employ them.

DATED: 16.06.10

FEED: AM

The country's top 100 performing dealers by turnover were revealed at the AM100 industry dinner last night.

The AM100, which was compiled in partnership with Grant ThorntonAutomotive, revealed how dealer groups performed during the recession, which was tempered - at least temporarily - by the scrappage scheme.

With new car sales falling, total turnover for the AM100 was down from £38 billion to £35 billion.

But analysis of the AM100 reveals that except for the largest groups, profitability has returned.

The top 20 groups by return on sales shows five groups, headed by AM best retailer award winner Lifestyle Europe, exceeding 3%.

A year ago just one company, Stoneacre, achieved such a figure.

The entry figure to the top 20 groups that achieved the highest return on sale is 2.2%, compared to just 0.6% last year.

The top 10 most profitable groups generated total profits before tax of almost £250 million, compared to £73 million a year ago.

While turnover fell sharply, the £1.4 billion fall is by just two groups in the top 10.

Pendragon dropped by more than £850 million, having closed 26 franchised points, while Inchcape had made its plans to contract clear in order to focus on core brand partners and so its fall in turnover by £26 million was expected.

The top 10s turnover is now at £15.9 billion, £1.3 billion – or 8% - down year-on-year.

The number of outlets run by the top 10 has increased by a little over 1% to 1,021, still some way off 2008’s pre-recession total of 1,110.

Topping the profit per outlet league was the Gilder Group with £713,000.

Last year Porsche Retail Group topped the chart after it made £669,600 profit per outlet.

For profit per staff member the top performer is Halliwell Jones Group at £18,092, compared to Porsche at £10,977 last year.

Other highlights include Marshalls, which moved up four places, crossing the £500 million turnover threshold through acquisitions, a reorganisation of the business and chief executive Daksh Gupta’s unashamed drive to make the group the best car retailer in the UK.

He added 17 sites this year. Its growth is set to continue this year.

Another group with confident and often stated aspirations to grow is Cambria, emerging from its Swindon heartland to pick up businesses with “room for improvement” in Kent and Bolton in the north west, spreading the model of its decentralised management ethos ever further and now buoyed by it’s A.I.M flotation.

Cambria has in its sights two further acquisitions this summer on the back of a 60% improvement in revenues in the six months to the end of February, a net profit margin of 1.4% and a 59% increase in new car sales.

Group 1 Automotive bought south coast-based Chandlers BMW, followed by Barons Group which has brought them into the top 50, at number 42.

Wayside maintains its focus on building market share with a focus on developing its existing territory and existing brands, moving up 19 places to 22.

Johnson Cars and Ridgeway acquired parts of Motorworld, Johnsons adding Mazda and Mitsubishi and Ridgeway expanding with existing partner Volkswagen.

Click here to see the AM100 list and look out for the AM100 special supplement in the June issue of AM.

> A total of £3,170 was raised for BEN at the AM100 Dinner during the table raffle and four tickets for the 139th Open Championship at St Andrews in July.

DATED: 16.06.10

FEED: AM

Chancellor George Osborne has confirmed that he will give the Bank of England the key role in regulating the UK financial sector.

Mr Osborne told the House of Commons that the current system of financial regulation had "failed spectacularly".

He added that Sir John Vickers, former head of the Office of Fair Trading, would look into the potential break-up of Britain's biggest banks.

Mr Osborne is due to give more details of his plans in a speech tonight.

The existing regulatory systems, led by the Financial Services Authority, will be dismantled.

Mr Osborne confirmed the plans in answer to a question from shadow chancellor Alistair Darling.

Mr Osborne said: "On the structure of regulation, our plan is to hand over to the Bank of England responsibility for macro-prudential supervision, that should never have been taken away from it."

Before the general election, Mr Osborne had suggested he would abolish the FSA.

It was thought possible that the regulator would be retained in some form, perhaps with a watered-down role of supervising individual banks.

However, on Sunday BBC business editor Robert Peston revealed that the government had decided to break up the FSA and make the part that monitors financial institutions a full subsidiary of the Bank of England.

The FSA has come in for criticism for not doing enough to prevent or limit the crisis in the financial markets.

Mr Darling told the Commons on Wednesday that the planned changes would lead to confusion and risked creating "a dog's breakfast of a regulatory system".

Mr Osborne also announced that a commission to look into the possible break-up of the big banks would by chaired by Sir John, a former member of the Bank of England's Monetary Policy Committee.

The independent commission will take at least a year to review whether casino-style investment banks should be split from deposit-taking institutions on the High Street.

Mr Osborne said that the commission would approach its task with an "open mind".

He is due to give his first Mansion House speech tonight, when he is expected to detail plans for a powerful new Financial Policy Committee at the Bank of England.

This could involve creating a new post, such as a chief executive of financial regulation, with the status of a third deputy governor of the Bank.

The chancellor may also confirm an intention to introduce a levy on banks, but full details are more likely to come in next week's budget.

The BBC's business editor, Robert Peston, said that the FSA was effectively being broken up.

"The part that's supposed to prevent banks taking dangerous gambles, which regulates and supervises them, will become a subsidiary or arm of the Bank of England.

"And the bits that are supposed to protect consumers and crack down on crooks will be injected respectively into a new Consumer Protection Agency and an Economic Crime Agency," our correspondent said.

Gordon Brown, made Chancellor when the Labour Party won the 1997 general election, created the FSA following criticism that the Bank had failed to sufficiently regulate the UK's financial system.

But there was criticism of Mr Brown's move from people who thought the change gave far too much power to a single body.

DATED: 16.06.10

FEED: BBC