Thursday, July 22, 2010
Greenhous Group becomes SAF approved
Greenhous Group is the latest dealer group to achieve SAF approved status under the Finance & Leasing Association’s Specialist Automotive Finance (SAF) initiative.
Greenhous’ inclusion into the SAF Approved ranks means that half of the top 10 UK dealer groups have now become SAF approved.
Greenhous achieved SAF approved status after all of their sales executives passed the online SAF competence test, administered by the FLA. Greenhous and other SAF approved dealerships will be able to display the SAF-branded material in all their showrooms.
The free SAF test will shortly be extended to include a new module to help dealers prepare for changes under the Consumer Credit Directive.
Nick Jones, group finance manager for Greenhous, said: “The hard work that has been undertaken by the sales teams to achieve the necessary standards shows our continued commitment to offering customers the highest levels of advice and service.
DATED: 22.07.10
FEED: AM
Automotive executives brief new MPs on economic role of the UK motor industry
enior executives from across the automotive sector attended a reception at the House of Commons yesterday (20th July), demonstrating the significance and diversity of the UK motor industry to new parliamentarians.
Organised by the Society of Motor Manufacturers and Traders and hosted by the All-Party Parliamentary Motor Group, the event was attended by over 200 MPs and industry representatives including apprentices from nine global companies that manufacture vehicles in the UK. Industry leaders, including McLaren Automotive's executive chairman, Ron Dennis CBE, spoke to MPs about the sector's economic importance and the opportunities for growth presented by the shift to low carbon transportation.
Providing the keynote speech, Mr Dennis spoke of the world-class engineering skills located in the UK and the importance of continuing to attracting young talent to the industry.
"Over the next few years we must increase the proportion of the UK economy that relies on manufacturing, we must develop our competitiveness on the world stage and we must encourage greater foreign direct investment in manufacturing and engineering," said Mr Dennis. "These goals can be achieved through a new collaborative approach by industry and government that focuses on education, R&D, participation in success and daring to be different."
Speaking about the national importance of the industry, SMMT chief executive, Paul Everitt said, "Every community around the country has links to the industry - 800,000 people work in it and hundreds of thousands more depend on it for their livelihoods. Automotive is a large, diverse and economically significant industry encompassing design, development and manufacturing as well as retail, distribution, service and repair."
Looking ahead at prospects for recovery and growth Mr Everitt said, "I am extremely proud of what the UK motor industry has achieved, not just its strength and resilience during the last two years but the way it has adapted and transformed itself during the last two decades. There are some really significant challenges ahead of us, but they are also opportunities to strengthen the UK economy, re-build UK supply chains and create long-term careers for a new generation of scientists, engineers and technicians."
Chair of the All-Party Parliamentary Motor Group, Richard Burden MP said, "The UK motor industry plays a significant role in the UK economy, manufacturing products that are exported across the globe. As the trend toward low carbon vehicles gathers pace, we have the opportunity to position the UK as a global leader both in terms of the vehicles we buy and the technology we produce, leading to long-term economic growth."
Fiat returns to profit ahead of demerger
Italian carmaker Fiat has returned to profit for the first time since 2008, as it prepares to spin off its non-car assets next year.
The group recorded a 113m euros ($145m; £95m) profit for the second quarter, against a 179m euros loss a year ago.
The encouraging result was driven by a turnaround at its car components division, which saw revenues jump 35%.
Fiat, which also produces tractors and trucks, plans to split into separate car and non-car businesses in January.
The results were well ahead of market expectations, and Fiat's share price jumped 6.5% when the Milan stock exchange opened on Wednesday.
The company also said it had raised its target for full-year profits.
Car sales
Net revenues for the quarter rose 12.5% on a year earlier, to 14.8bn euros.
However, this still remains well below pre-recession levels. Two years ago, revenues were 17bn euros.
The bulk of the Fiat Group's business is done by its carmaking division, which saw net revenues rise 7% to 7.9bn euros.
That included a big jump at Maserati - one of its two luxury car lines along with Ferrari - where net revenues were up 57% to 174m euros.
However, despite the increased business, the carmaker still suffered from falling market share, down to 7.5% from 9% in Europe, and down to 30.3% from 34.4% in its home market Italy.
Wednesday, July 21, 2010
HR Owen bounces back in first half trading
The London-based listed luxury group said trading up to the end of June was ahead of internal budgets for both its sales and aftersales operations and is significantly ahead of the same period last year.
Volumes and margins
"New car sales have performed very well with improvements being seen in both volumes and margins compared to both internal expectations and the prior year," the group said.
HR Owen said sales of the new Rolls-Royce Ghost and Ferrari California have been particularly strong.
Used volumes
The group said used car volumes and margins were also ahead of the same period in 2009. While aftersales, which were hit by the bad weather at the beginning of the year, have "rebounded" and are now ahead of the same period in 2009.
"New and used car stocks remain well controlled, and the group continues to hold substantial cash balances and no net debt, excluding manufacturer stocking loans," it said.
Recovery
"The fragility of the economic recovery in the UK means that the board remains cautious about the current trading outlook for the Group. However, the medium to long term prospects are viewed with confidence."
Executives
While the group continues to search for a managing director, following the departure of Nick Lancaster in May, it has appointed
Adrian Martin as a non-executive director. Martin was a managing partner at BDO Stoy Hayward and has served on the board of Carphone Warehouse.
DATED: 21.07.10
FEED: MT
Ford Retail joins Dealers Backing Ben initiative
Launched in June the fundraising scheme has already won the support of Marshall Motor Group, Lookers and Sytner.
Revenue stream
"Dealers Backing Ben provides us with a sustainable revenue stream which will allow us to reach out to more of our industry colleagues in need than ever before and to continue to seek out new, innovative ways of providing care and support," said Charles Davis, Ben's fundraising and communications director.
Structured
Chris Hayden, chairman and chief executive officer of Ford Retail Group commented: "Although we are already keen supporters of Ben this is a very well structured fundraising initiative that makes it easy for any dealer to participate in, as such we thought it was definitely worth investing in to further cement the relationship with our industry charity."
How to join
For further details on how to join the scheme email nigel.williams@ben.org.uk
DATED: 21.07.10
FEED: MT
Fraud costs record £1bn so far this year
For the first time in its seven-year history, the Fraudtrack survey, from accountants BDO, has reported half-year fraud at more than £1bn. That’s up on last year’s figure and nearly twice as much as for the same period in 2008.
The average cost of each case is up from £5m to £6m and mortgage fraud – now a big business for organised crime – accounts for 20% of cases.
But the crooks are getting better at covering their tracks – despite the fact that it is notoriously hard to nail fraudsters. Hiding fraud by setting up companies within companies to make it harder to spot what’s really going on is one of this year’s hot trends, according to the survey.
So what’s going on? Has the recession made it so hard to turn an honest crust that the nation is turning to nefarious practices instead? Or are employees simply so peeved at the way their employers have behaved during the hard times that they have determined to take ‘compensation’ into their own hands?
Neither, according to Simon Bevan, head of BDO’s fraud services unit, at any rate, who said it’s all a matter of detection.
Fraud, he reckoned, is more or less constant throughout the economic cycle, but rates of discovery go up when money gets tight. Partly due to more thorough scrutiny by cash-strapped firms of their own accounts, partly because of heightened regulatory interest, and partly because there’s a ready supply of newly redundant employees ready to blow the whistle on former colleagues involved in sharp practices.
So it’s more a case of fraud committed while no one was looking during the boom years now coming to light well after the bubble has burst. And if the age of austerity results in a cleaning up of corporate fraud and a general tightening of firms' internal audits and controls, that might not be such a bad thing after all. It’s an ill wind that blows nobody any good.
DATED: 21.07.10
FEEDD: MgmtT
Vauxhall dealers to display new griffin logo
Network
The carmaker describes the new look as "bold, proud and slightly aggressive" and expects all of its 466 strong network to feature it by the end of the year.
New look
The new look is part of GM's relaunch of its European business under the leadership of former Vauxhall UK boss Nick Reilly.
DATED: 21.07.10
FEED: MT
New car finance sales ahead for May
New car finance sales in May increased by 15 per cent compared to May 2009, according to figures from the Finance & Leasing Association.
New car finance sales in May increased by 15 per cent compared to May 2009, according to figures from theFinance & Leasing Association.
More than half of car buyers in May used dealer finance to fund their purchase, it said.
This indicated that the end of the scrappage scheme did not lead to the feared drop-off in the number of customers wanting to buy new cars.
Business purchases of new cars on finance also grew by 21 per cent in May compared with a year earlier.
The latest figures also show that consumers are taking advantage of dealer finance to buy used cars in similar numbers to last year. More than 52,000 used cars were bought with the help of dealer finance in May.
FLA head of motor finance Paul Harrison said:
"Dealers are offering value-for-money deals, which have kept customers coming through the doors.
"This has meant that the amount of dealer finance provided to consumers for new cars has grown by a fifth in the last 12 months compared with the previous 12-month period.
"The first half of the year has been encouraging for dealers. But we expect to see sales of new cars on finance drop off later in the year while used car finance sales will pick up as second-hand stock becomes more available."
DATED: 21.07.10
FEED: MT
Citroen names new sales director
Vacancy
The position has been vacant for some time following the departure last year of Simon Monahan whose responsibilities were assumed by former Citroen managing director Gary Savage, who in turn left the brand in June to take up the top job at Mercedes-Benz Cars.
French-born Peugeot, whose family are involved in the management of the PSA Peugeot Citroën Group, has held a number of international positions within the group and starts his new job on 1 August.
Appointment
"Charles is the perfect appointment for this pivotal position within Citroën UK because of his operational experience and existing relationships with the Citroën dealer network," said Linda Jackson, Citroën's UK managing director.
"As head of commercial vehicles and business sector, he has already played a key role in driving sales and helping to grow Citroën's reputation in the UK through new initiatives and the provision of an enhanced customer service programme. I look forward to working with him to increase our sales and network profitability in the UK," she said.
DATED: 21.07.10
FEED: MT
Mazda dealers to sell car insurance
Under the terms of the three year deal Equity will provide branded policies through Mazda's network of 153 dealerships as well as administering its online quote and buy system.
It also involves a tie-in with Equity's existing finance partner, Santander, which provides consumer finance to Mazda buyers through the Mazda Financial Services brand.
Mazda Car Insurance features free seven-day comprehensive cover for buyers of new and used vehicles.
Mazda UK sales director Mark Cameron said Equity had the right online expertise and level of customer service.
Equity Direct relationship manager Neil McCallum said it was a "perfect fit".
DATED: 21.07.10
FEED: MT
Toyota tops poll on best customer service
Its official - Toyota offers the best customer service. Despite a difficult year for the carmaker, its quick and effective handling of a series of recalls seems to have paid off after it came top for its customer service in a list of ten of the biggest carmakers in the UK*, according to a poll on RoadTestReports.co.uk.
Voted for by visitors to the popular consumer car review website, Toyota steamed ahead taking 17 per cent of the vote nudging ahead of key rival Volkswagen with 15 per cent.
As a major forum for collecting the experiences of car buyers, the website's visitors are quick to praise car manufacturers when they deliver on both their products and in their services.
Although the website is best known for its reviews of the cars themselves, good customer service is an important part of the overall car buying experience and likewise attracts comments and critique from the website's users.
Sadly though it's not all good news, despite being one of the top three carmakers in terms of sales figures, Vauxhall managed to come last in the poll taking just 5 per cent of the vote.
"Despite media criticism of Toyota, our poll proves that the company handled its recall crisis effectively and efficiently and has emerged relatively unscathed in the minds of the public. The perception of the brand appears to have been well-maintained and proves just how essential good customer service is to the overall performance of the company. Poor service can be the ruin of an otherwise good line-up of car models; it's the final and essential component to ensuring that the feedback from buyers on websites such as our own is positive," says RoadTestReports.co.uk spokesperson, Faye Sunderland.
"Good service can be something as simple as providing adequate phone cover or responding to a query in good time. Eventually, providing good service pays for itself in repeat customer and word of mouth recommendations," she adds.
*Top ten defined by UK car sales for the year 2010 up to the end of May.
RoadTestReports.co.uk asked 519 website visitors; 'Which of the following carmakers do you think offers the best customer service?'
The full results were:
Toyota (17%)
Volkswagen (15%)
Honda (15%)
Mercedes-Benz (11%)
BMW (10%)
Audi (10%)
Ford (6%)
Citroen (6%)
Peugeot (5%)
Vauxhall (5%)
Honda sets 2012 electric car date
Honda is to start selling electric cars in the US and Japan in 2012.
It will also launch a plug-in hybrid in the same year as it joins the race to manufacture more environmentally-friendly cars.
Honda's president said the firm had "no future" without making vehicles that emitted less carbon dioxide.
It is the first time the firm, which already makes the Insight and CR-Z hybrids, has set a firm date for launching electric cars.
'True test'
Honda's Japanese rival Nissan is already taking orders for its Leaf electric car - due in Japan and the US later this year.
Meanwhile, Toyota is planning an electric vehicle model for 2012.
Honda Motor president Takanobu Ito said: "The next 10 years will be true test for Honda's survival.
"Honda has no future unless we achieve significant reduction in CO2 emissions."
