F&I Management & Training

Whilst the nation's Roman Catholics and other religious groups were celebrating the arrival of Pope Benedict today, I was busy running his Mercedes Benz Popemobile registration number through our VRM look up software.

The Popemobile uses the registration plate SCV 1 which is an abbreviation of "Status Civitatis Vaticanae" - Vatican City State. It's one of two vehicles he'll use during his visit to the UK.
However, it would appear that the Pope is not the only car owner with an SCV1 registration plate. Our records show that number is registered to a black 2004 registered Jeep Cherokee.

I'm sensing that things could go one of two ways here. Firstly, there's the opportunity for the Jeep owner to park on double yellows, drive in bus lanes or speed with impunity. When the inevitable fines come through the post the owner can simply lay the blame at the Pontiff's door. On the other hand, there's the UKs battalion of overzealous private clampers to consider. If they start slapping clamps or parking tickets on the Pope's car the inevitable fines will still land on the Jeep owner's door mat so it's not looking good either way. To make matters worse I noticed the Pope wasn't wearing a seat belt! Who's going to be paying the sixty quid fine I wonder?

Personally, if I was that Jeep owner I think I'd take the opportunity to sell the number plate to the Vatican so that it's a bit more bona fide if the Pope should make a return to the UK. If the Vatican doesn't want it, no problem, its provenance has just been lifted by a couple of notches anyway!

A number of Europe's vehicle makers are at the centre of a price-fixing inquiry by the UK's Office of Fair Trading.

The OFT confirmed it had launched both criminal and civil investigations into suspected price-fixing by major lorry manufacturers in the UK.

The companies include Mercedes-Benz, Scania, MAN, Iveco, Renault Trucks and Volvo Trucks.

The OFT said it was looking into suspected cartel activity and investigations were at an early stage.

Arrest made

The investigations are being carried out under both the Enterprise Act 2002 and the Competition Act 1998.‪

Proven price-fixing carries big fines for companies and criminal prosecutions against executives. The regulator has the power to impose financial penalties of up to 10% of a firm's revenue.

The OFT told the BBC it has visited the UK offices of Daimler's Mercedes-Benz as part of a broad-ranging investigation into the pricing of trucks. One person was arrested, but later released on bail.

It said in a statement it "will not be in a position to conclude whether it considers the law has been infringed until it has completed its investigations and assessed the available evidence".

A spokesperson for Mercedes-Benz confirmed that the OFT had carried out an on-site investigation and said it was "fully co-operating with the investigation, which may take many months to complete".

Mercedes has offices at Tongwell, near Milton Keynes.

The German company MAN Group, which makes the TGX range of trucks, told the BBC it was "fully co-operating" with the investigation.

Scania of Sweden said it had received a letter from the OFT requesting documents related to the investigation, adding that it would co-operate.

Volvo Group has confirmed that the UK businesses of two subsidiaries, Volvo Trucks and Renault Trucks, are also under investigation. It said it had no further comment.

Iveco, which is owned by Italy's Fiat, said it was aware of the OFT probe and would co-operate.

Complaints about second-hand cars rose by 18% in the first six months of the year compared with the same period in 2009, the Office of Fair Trading says.

It said the advice service, Consumer Direct, took 38,138 complaints about used vehicles bought from dealers.

An earlier OFT study found that many car buyers found faults in vehicles only once they had driven them away.

The OFT is warning buyers to check their rights before settling a deal and to take time over buying.

The motoring organisation, the AA, called the findings "alarming".

'Rip-off'

Some 3.6 million used cars are bought each year in the UK, costing a total of £24bn.

The study found that many motorists ended up fixing problems with their new purchase themselves, at an estimated average cost of £425, when in fact they were the dealer's obligation to correct.

Consumer Direct operations manager, Michele Shambrook, said: "Dealers have a responsibility to sell cars that are of satisfactory quality.

"This will vary depending on issues including the vehicle's age and mileage, but as the vast majority of all second-hand car faults come to light in the first three months, they will often be the dealer's responsibility to fix."

AA president Edmund King said: "With two-thirds of used-car buyers spending less than a fortnight to choose a car, while many will spend months planning a holiday, rip-off merchants are handed easy pickings on a plate."

Consumer Direct receives more calls about motor vehicles than anything else.

Checklist

The AA's Mr King said that although car buying was typically the second-biggest purchase most people made in their lives, it happened relatively infrequently, so buyers forgot the pitfalls and often let their heart rule their head.

The OFT and Consumer Direct have compiled a checklist for potential buyers, including questions about the car's mechanical history and mileage checks, the number of former owners, documentation about the full service history and any modifications.

They also urged buyers to get the answers in writing rather than relying on verbal claims or promises by the seller.

In March, the OFT published a damning report about the state of the secondhand car market.

However, following the nine-month study of the market, it decided existing laws were sufficient to clean up the sector.

Carmakers Daimler, Renault and Nissan are redoubling their electric cars effort in the race for market share in a world of tighter emission rules.

Daimler's research chief, Thomas Weber, told Reuters in an interview its cooperation with Renault and Nissan "will be expanded to include all three partners as far as electric motors, batteries and powertrains are concerned."

The move comes as carmakers and car parts suppliers rush to gain a foothold in the market for zero-emission vehicles as deadlines for lower emission levels near.

Toyota Motor Corp said Monday it would offer a plug-in version of its Prius model positioned to be the cheapest green car of its kind by 2012.

France's Renault, its Japanese partner Nissan and Daimler signed a cooperation deal in April initially focusing on small cars, light commercial vehicles and engines.

The cooperation included so far the next-generation Smart fortwo and Renault Twingo models, including electric versions, as well as expanding the Smart and Twingo families.

Car emission standards are becoming stricter to fight global warming. Brussels targets an overall level of around 95 grams of carbon dioxide per km by 2020 for new cars sold in Europe.

"We won't be able to meet the target of 95 grams CO2 in 2020 without electric vehicles with batteries and fuel cells," Weber said in the interview conducted last Thursday.

But the new technology is still in its infancy and "it won't be easy to then also earn money with these cars," Weber added.

That's why Daimler has decided to broaden its existing partnership with Renault and Nissan, hoping to cut costs by building scale.

Daimler benefits from economies of scale for small three- and four-cylinder engines, Weber said. "We would have reached quantities of about 500,000 engines at most on our own. Together with Renault we are talking about several million."

Weber added he expects Nissan to purchase a mid-five-digit number of diesel engines from Mercedes as part of the deal.

Daimler shares were up 0.8 percent at 44 euros by 1319 GMT, outperforming the DJ Stoxx autos sector index. Renault shares eased 0.9 percent, while Nissan closed down 0.3 percent.

The number of complaints about the used car sector rose by 18% in the first six months of the year compared with the same period in 2009, according to new Office of Fair Trading statistics.

Used cars topped the list of complaints with Consumer Direct recording 38,138 instances.

However, the number of complaints had fallen sharply from the 50,790 complaints that were recorded in the final six months of 2009.

Mobile phones came second with 22,612 complaints and televisions came third with 22,138.

The study found that many motorists ended up fixing problems with their new purchase themselves, at an estimated average cost of £425, when in fact they were the dealer's obligation to correct.

Consumer Direct operations manager, Michele Shambrook, said: "Dealers have a responsibility to sell cars that are of satisfactory quality.

"This will vary depending on issues including the vehicle's age and mileage, but as the vast majority of all second-hand car faults come to light in the first three months, they will often be the dealer's responsibility to fix."

Paul Williams, Retail Motor Industry (RMI) chairman, said: “It’s really important that people are well informed when purchasing a used car, and we fully support the OFT’s campaign to raise awareness of consumers rights, which will lead to elevated levels of consumer confidence.”

The RMI provides a conciliation and arbitration service for consumers who have purchased a car through an RMI member garage.

Williams said: “If a consumer has purchased a car from an RMI member garage, and is not entirely satisfied, then we can assist with the conciliation process.

“Should conciliation not resolve the issue, then we can intervene and provide an arbitration service, which is free of charge to the consumer, should the garage be found to be at fault.”

The RMI are currently working with manufacturers, franchised dealers, independent garages, the police and local authorities to raise the standard of used car sales practices in the UK.

The OFT said that although most car dealers are reputable it advised people buying a used car take the following precautions:

• What mechanical history and mileage checks have they done on the car you want to buy?
• How many former owners has the car had and is the full service history available?
• Has the car been modified from its original specification?
• Is the car ex-hire or similar?
• Ask for important information and answers to your questions to be put in writing before you buy so you have proof of claims - don't just rely on verbal claims or promises by the seller.
• Find out about the dealer's customer complaint procedures and whether they are signed up to a code of practice - if a problem does arise after the sale you need to know who to contact.
• Remember that if you buy a car from a private seller or an auction, you may pay less but you will have fewer legal rights than when buying from a dealer.

Nissan is promising its van dealers six new light commercial vehicles by 2013 plus globally advanced technology to put them on business users' shopping lists.

The Japanese manufacturer aims to become a major global player in the LCV market.

It starts with the reveal of a passenger version of the NV200 van during this month's Hannover Commercial Vehicle Show.

Its display will also feature zero emission battery technology to be used on Nissan's future electric van.

Nissan is also planning the world reveal of an important new range of vehicles which will take the brand into significant new areas of the LCV market.

“Nissan is deadly serious about becoming a major player in the commercial vehicle world. Despite the current economic crisis we are already selling more than 500,000 units globally. But by the middle of the decade we aim to be producing more than 1 million units annually,” said Gilles Normand, corporate vice president, Nissan Motor Co.

Nissan recently announced that its second all-electric vehicle, after the Leaf hatchback, will be a light van.

The strength of the Porsche brand has underpinned the success of Cayenne since its introduction in 2002. The revised (and much improved) styling gives it a sportier edge, both inside and out, and distances the car a little further away from the VW Touareg with which it shares so much.

The Cayenne is one of the products that most often attracts the ‘Chelsea Tractor’ tag. Even so, it hasn’t stopped significant numbers being sold; almost to the point that it has diluted its exclusivity.

An introduction of a high power hybrid model gives a greener aura to the range (even though CO2 emissions are almost the same as the diesel model). If your budget stretches to £45,000 then a blend of practical performance motoring and one of the World’s most identifiable brands could be yours.

The Cayenne used to be the only option for Porsche drivers that needed more space. The arrival of the Panamera offers those with bigger budgets something a little more exclusive. Then of course there are still some fine alternatives from the Audi, BMW, Mercedes, Lexus (if you must have a hybrid) and Land Rover.

The recent announcement of its 'Lifetime' warranty from Vauxhall had raised concerns amongst independent garages and parts distributors that customers would be forced or hoodwinked into taking their vehicle to a Vauxhall Authorised Repairer for all its service needs and the independent operators would, somehow, be excluded and disadvantaged.

In response to the IAAF's enquiries on members' behalf, Vauxhall have confirmed that the warranty remains valid irrespective of where the vehicle is serviced.
Brian Spratt, IAAF commented: "This clarification from Vauxhall is very welcome." He had written to Duncan Aldred, Vauxhall's Managing Director, seeking confirmation that the new warranty was not designed to circumvent the EU Automotive Block Exemption rules.

In his reply Mr Aldred wrote: "I can confirm that the Warranty Terms and Conditions are fully compliant with the requirements for new car warranties contained in the EU Automotive Block Exemption 461/2010 which came into force on 1st June 2010. In that respect, the warranty remains valid as long as vehicle are serviced strictly in line with our schedules irrespective of whether that takes place within or outside the Vauxhall Authorised Repairer network. Further, any parts, including oils, must as you indicate be original or matching quality parts if sourced outside the Vauxhall Network."

"The key here," explained Brian Spratt, "are the words 'serviced strictly in line with the Vauxhall's service schedules'. This places the responsibility for proper servicing upon the garage performing the service. If a garage fails to adhere to the schedule, or doesn't use the proper parts and materials, then it will be that independent garage's responsibility if a warranty claim is subsequently refused. It's important for all independent garages and parts suppliers to realise that fact."

The IAAF has provided its members with the web link for full details of Vauxhall's service schedules and model specific technical data.

Vauxhall lifetime warranty will apply to the first owner of any Vauxhall registered after August 1 2010, and will cover the car until it reaches 100,000 miles, no matter how many years that takes. The new Vauxhall warranty is dependent upon the owner submitting the vehicle for an annual inspection complete with a stamped up-to-date service book.

There are fewer people using motor finance to buy a car, but those who do are buying more expensive cars, according to the latest data from the Finance and Leasing Association.

The FLA motor finance statistics for July 2010 show that the number of cars financed was down 7%, but the loans advanced against those cars was up 6% compared with finance sales for July 2009.

Both the value of advances and the number of used cars sold on finance grew in July, but the discrepancies seen in the growth rates reinforce the trend seen in the new car market.

While the number of used cars bought on motor finance has gone up by just 1%, the value of cars financed has gone up by 6%, revealing that here too, people are buying more expensive cars.

Paul Harrison, head of motor finance, said:
"Last year, the scrappage scheme encouraged motorists to buy cars. And the cars they were buying tended to be smaller, basic models and were often bought with cash.

"This year, the people who are buying cars are using motor finance to buy more expensive, often prestige cars. Those buyers are likely to be in secure jobs unaffected by the recession, and so have the confidence and income to commit to buying a car.

"The drop in the number of cars sold is not unexpected. We have said previously that there is likely to be a drop in the number of cars sold in Q3 of 2010, before business picks up again towards the end of the year as people aim to beat the VAT rise to 20% on 4 January."

DATED: 15.09.10

FEED: AM

Used car values increased in August for the first time in months according to Auction4Cars, the fee-free car auction website.

A price hike of £177.49 between July and August saw average used car values rise marginally to £2,587.74 (equivalent to a 7.36% increase)

Used cars values have been falling since April, gradually cancelling out the highs of the previous year - bringing them more in line with those of 18 months ago.

Auction4Cars sells 15,000 plus part-exchange vehicles exclusively to the trade. Prices range from £100 to £20,000.

Says Neil Prescott, Group Disposal Manager: "Used car values seem to be holding their own at the moment, despite August traditionally being a quieter month because of the new plate change. We would expect the final quarter of the year to remain similarly unstable."

Toyota plans to launch six new hybrid vehicles by the end of 2012, a company spokesman has said, as competition to build greener cars increases.

The increase will take Toyota's total number of hybrid models to 20.

The Wall Street Journal reported that two would be luxury brand Lexus models and four would be Toyota vehicles.

As well as the new hybrid models, which run on petrol and electricity, Toyota will also unveil a fully electric version of its RAV4 sports utility vehicle later this year, the spokesman said.

The model, developed with its US partner Tesla, will be revealed at the Los Angeles auto show in late November.

Overfinch, the UK company which specialises in bespoke Range Rovers for the wealthy, is opening a dealership for the south of England.

The retailer, Overfinch South in Farnham, Surrey, is backed by former Bramshaw Garages head Brian Wiggins and business partner Mark Holland.

It coincides with management changes at Overfinch which have seen it attract former Land Rover and TVR executives.

Robert Dover, a former chief executive and chairman of Land Rover, Jaguar and Aston Martin, has been appointed chairman.

Former TVR sales and marketing head Ben Samuelson has joined as marketing director.

And Overfinch's head of design, Bruce Southey, has joined Douglas Cooke and Neil Underwood as the only three shareholders in the privately-held business.

Overfinch has recently started work on the new Range Rover Evoque, and its designers and engineers have a range of enhancements for the 2011 Range Rover and Range Rover Sport.

DATED: 15.09.10

FEED: AM

Today Society of Motor Manufacturers and Traders (SMMT) has launched the 2010 Automotive Innovation Award to encourage the creation and development of new innovative products, technologies and ideas that could change the face of the UK automotive industry, as well as to recognise existing products which have already contributed to automotive excellence.

Supported by sponsoring partners GKN Driveline and The Mail on Sunday's Live Magazine, the inaugural award will also recognise award entries which have already contributed to excellence in design, creation and engineering in the UK's automotive sector.

SMMT chief executive Paul Everitt said: "The opportunities and challenges faced by the motor industry make it one of the most exciting places to make your career. The Automotive Council has created a new focus on innovation and the potential of new technologies, so I am proud to be launching this Award and am looking forward to receiving high calibre submissions from all sectors of the industry."

The award is open to any individual and entries will be judged by a panel of automotive industry experts and the winner will be announced at SMMT's Annual Dinner on 23 November 2010 at Hilton Park Hotel.

The motoring research charity the RAC Foundation has become a sponsor of the Royal Automobile Club's new Brighton to London Future Car Challenge taking place in November.

The Challenge is open to the latest electric, hybrid and low-emission passenger cars, light commercial vehicles and motorcycles. Around 50 entries are expected with trophy awards presented in different categories for vehicles judged to have made the least energy impact during the 60-mile run.

Commenting on the Foundation's decision to support the event, its director Professor Stephen Glaister said, "We are at a pivotal point in the greening of road transport. This Challenge will showcase the new generation of ultra low-carbon vehicles to the public. If the country is to meet its commitments to fight climate change then it is the average driver who needs to be convinced that these cars, vans and bikes are both practical and affordable. The Future Car Challenge is the ideal way to demonstrate to a large audience what tomorrow's cars will look like and how they will perform."

The Foundation regards greener transport as a key area on which to focus research and in March 2010 published Driving Down Emissions - The Potential of Low Carbon Vehicle Technology.

With a quarter of all CO2 emissions coming from transport - and 90% of these originating from road vehicles - the Foundation backs the automotive industry's attempts to make their products increasingly environmentally friendly.

Professor Glaister continued: "With people right across the income spectrum reliant on car travel, the question is not; how you eradicate motor vehicles? But how you accommodate them? How do you make them greener, whilst preserving mobility?"

The Foundation recognizes much can still be achieved by further refinement of the internal combustion engine which could deliver efficiency savings of 15 to 30 per cent by 2020.

In the longer term it is up to the Government to help shape the market for ultra-low carbon vehicles such as those powered by electricity and hydrogen, but the Foundation believes it unlikely that any one technology will provide all the answers.

The Future Car Challenge takes place on Saturday 6 November, the day before the world famous London to Brighton Veteran Car Run (LBVCR) and using the same 60-mile route, but in reverse! The formal finish will be in Pall Mall followed by a special ceremonial finish and presentation in Regent Street. Here, the vehicles will join the display of more than 100 pre-1905 motor cars in the LBVCR International Concours in front of an estimated 250,000 audience.