Thursday, September 02, 2010
Saab owner Spyker posts loss
Spyker, the Dutch boutique sportscar group that owns Saab, said it lost 139m euro after tax in the first half in its first set of results since acquiring the Swedish car brand from General Motors.
Spyker said it had negative equity of 126m euro and that Saab sold barely 10,000 cars in the first half of the year in a set of numbers that will do little to dispel longstanding questions in the car industry over the brand’s viability as a standalone company.
Victor Muller, the group's chief executive, said that Saab's "brand loyalty, goodwill and interest in our cars, together with the enthusiasm of our existing and new distributors" would help it reaffirm its status as "a premium niche car manufacturer with global presence".
The group said it had no need to recapitalise through a share issue or other financial instruments, despite its negative equity.
Saab sold 10,535 cars in the first half, 50 per cent fewer than a year ago, when it was in administration.
However, Spyker said that the results could not be seen as representative because Saab's operations in Trollhattan, Sweden, were effectively shut down in the period.
The group said it was "confident of building increasing momentum" at Saab in coming quarters.
DATED: 02.09.10
FEED: GG
Toyota recalls one million Corolla and Matrix cars
Toyota has announced another recall involving more than one million cars in the US and Canada with potentially faulty engine control systems.
The models affected are the Corolla and Matrix made between 2005 and 2008.
The Japanese carmaker said three unconfirmed accidents were "alleged to be related" to the problem, one of which resulted in a "minor injury".
Last month, Toyota recalled 700,000 cars worldwide and has now recalled about 10 million in the past year.
The two recalls in July were due to steering and engine problems, while those earlier in the year were because of sticking accelerator pedals.
Engine failure
The latest recall involves 1.1 million cars sold in the US and Canada.
The problem with what Toyota calls the models' engine control module may result in a crack in solder points or on some electronic componentry.
If a crack appears, the engine may not start or, "in limited instances, the engine could stop while the vehicle is being driven", the carmaker said.
"This recall is an example of our commitment to standing by our products and being responsive to our customers," said Steve St Angelo, Toyota's chief quality officer for North America.
"Our goal is to help ensure that Toyota drivers are completely confident in the safety and reliability of their vehicles
DATED: 02.09.10
FEED: GG
Roewe cashes in on MG Rover's British heritage
Five years ago, the last car stuttered off the production line at Longbridge as MG Rover, Britain's last major car manufacturer, collapsed ignominiously.
Today, however, sales of Rover's twin brother, the Roewe, are soaring in China. And the white gates of Longbridge are open again, producing a new MG6 that will go on sale at the end of the year in the UK in the showrooms of as many as 40 dealers.
On the streets of Shanghai, Roewe 550s, designed in the UK by the team at Longbridge, are becoming a common sight.
In the first half of 2010, more than 47,000 of the cars were sold, at between £12,600 to £18,900, as sales grew by nearly 70pc. Across Roewe's three models, almost 62,000 have been sold in the first six months.
"It is an impressive performance," said Jin Yongsheng, an analyst at Sinotrust Information and Consulting.
"It is quite rare for a car like Roewe, at this price level, to achieve sales of over 10,000 a month," he added.
Shanghai Automotive (SAIC), which bought the designs for the Rover 25 and 75 before the company went bust, went on to invest £4.7m in a British design team at Longbridge because it never bought the Rover marque.
"The cars are successful in China because they have marketed them well, built a good brand and mixed up the technology," said Mr Jin.
"For example, the Roewe 750 is the old Rover 75, the 550 and 350 were part developed by the new team, and the upcoming W5 sports-utility vehicle is based on the Korean Ssangyong, which itself used Mercedes technology."
He said Chinese consumers saw the marque as British, but were also excited by the new life that SAIC had breathed into it.
"All the British badge means is that the car has a pedigree, a long history and a certain nobility. But that is it. SAIC has now focused on fashion and technology and the British designers have understood the Chinese market."
In addition, Roewe is seen as a premium brand. "They started with the most expensive car, the 750, before releasing a mid-priced and low-end car," said Mr Jin. "Other Chinese car companies still give the impression that they are low-end, even if they are now making expensive cars, because they started at the low end of the market."
The Roewe is not for sale in Europe, but the new MG that will roll out of Longbridge is destined to form the spearhead of SAIC's push into Europe.
DATED: 02.09.10
FEED: GG
FLA revises SAF finance test
The Finance & Leasing Association (FLA) has revised its Specialist Automotive Finance (SAF) competence test.
The update includes a new module on the requirements of the Consumer Credit Directive (CCD), which the motor industry has until 31 January 2011 to implement.
With SAF, the FLA is aiming to raise the standard of finance advice offered in dealer showrooms.
It is hoped the update will help dealership staff to prepare for the key regulatory changes and ensure that car buyers are provided with the very best information and protection linked to motor finance.
FLA head of motor finance Paul Harrison said: "The addition of the CCD module to the SAF Reference Material makes free information on CCD compliance readily available. We hope this will be a valuable resource for the industry and help it prepare for the changes it will face under the CCD.
"The extensive update of the Reference Material will ensure that SAF users have the most up-to-date information on how the finance products being sold in dealerships work."
DATED: 02.09.10
FEED: MT
