Saturday, October 16, 2010
Which? Car claims to reveal showroom shenanigans
Consumer watchdog Which? Car is publishing a feature intent on exposing tricks of the trade and what it calls “salesman’s hype”.
Richard Headland, Which? Car editor said the article was created to help stop customers from being duped into a bad deal.
The latest report from Which? paints the trade in a negative light, further strengthening the lazy stereotype that the automotive industry is full of “wheeler dealers”.
Headland said: “Buying a car from a dealer is a bit like a game of cat and mouse. If you know their tricks, you’re far less likely to fall for them and get a good deal.”
Slogans from the Which? Car article:
- High balling - The salesman offers the customer an unrealistically high trade-in price so he can offer less discount on the car he’s selling
- Ankle tapping - A salesman offers less than market value for a trade-in, so he can offer an unrealistically low price for a new car
- Time of the month - At the beginning of month, the salesman tells the customer he needs the sale to make up last month's quota. In the middle of month, he says the sale is needed to hit a specific target. At the end of month he claims to have "almost hit target" and just needs this sale to do it
- Wooden duck - A customer who does not haggle or negotiate.
British International Motor Show
Following a thorough consultation with the UK motor industry after the cancellation of the 2010 British International Motor Show, the Society of Motor Manufacturers and Traders (SMMT) has confirmed that the Show will not be reinstated in 2012.
"The British International Motor Show has been a tremendously successful showcase for the UK motor industry. In recent years the show has played a less important role in influencing new car buyers and vehicle manufacturers are focussing their limited resources on events and activities that have a more direct impact on brand awareness and consumer decisions," said SMMT chief executive Paul Everitt.
"The UK has a strong, diverse and highly competitive motor manufacturing industry, home to globally successful companies and iconic products admired around the world. Both SMMT and the industry are committed to displaying the achievements of the sector and providing our customers with an opportunity to experience the full breadth of models available in the UK," concluded Everitt.
Despite the upward trend in attendance at the 2008 British International Motor Show, the economic downturn and unprecedented challenges facing the industry both in the UK and around the world made it impossible for the industry to commit to a 2010 event, leading to its cancellation in March 2009. #
RMI hits back at latest Which Car? report
The Retail Motor Industry has hit back at claims from Which Car? that car dealers are duping customers into bad deals with “salesman’s hype”.
The report from Which? released yesterday, explained code words used by sales executives in the showroom to describe different types of sales techniques and customers.
Sue Robinson, RMI director, said: “The suggestions made by Which? are not in the least bit consistent with a modern day franchise dealership – where professionalism and standards are key to the business.
“Furthermore, the clichés referred to are both dated and stereotypical comments, which do not, and should not, exist in 2010.”
Robinson said customers can very quickly find out the price a vehicle typically sells for along with the value of a part exchange through the internet.
She said: “Use of the internet, providing access to masses of information, ensures consumers are highly informed in respect of any type of purchase that they are proposing to make.” at
DATED: 16.10.10
FEED: AM latest Which Car? report
Dealer views on branding contradict consumer opinion
Nearly three quarters of dealers believe their brand is important to customers when considering a new car.
The results of AM’s latest poll show that 74% of dealers believe the strength of their brand will directly influence a customer’s decision to buy.
However, the results contradict Auto Trader’s consumer research, which was revealed at AM’s Used Car Conference 2010.
Auto Trader surveyed 5,000 consumers on its website, 65% of which said the dealer brand was not important to them in the purchase decision. In addition, 20% said they couldn’t name a single franchised dealer brand.
One dealer said: “I believe most dealer groups are kidding themselves despite their best efforts to create strong own brands. The only brand the customer really takes much notice of is the manufacturers over the dealership.”
DATED: 16.10.10
FEED: AM
Friday, October 15, 2010
Jaguar Land Rover to retain three UK factories
Thousands of jobs have been saved at Jaguar Land Rover's plants in the West Midlands, the company has announced.
The company announced in September 2009 that one of its factories in Castle Bromwich, near Birmingham, or in Solihull would close within 10 years.
Unite said it had reached a new pay deal with management to secure the jobs of about 7,000 workers in the Midlands.
JLR said the "landmark" deal meant jobs would stay in Solihull, Halewood on Merseyside, and Castle Bromwich.
About 2,000 are employed at Castle Bromwich and a further 5,000 work at the plant in Solihull.
JLR chief executive Dr Ralf Speth said recruitment was already under way to fill 1,500 new posts at Halewood to support the launch of of the Range Rover Evoque.
The deal was a "triumph for all concerned" he said, adding that the pay and conditions deal "is truly the beginning of a new era for Jaguar Land Rover".
Wednesday, October 13, 2010
More than 22,000 Mercedes recalled over power steering worries
The recall is part of a global recall involving more than 100,000 C and E class cars made between the beginning of June last year and the end of February.
A Mercedes spokesman said the company's technicians in Stuttgart had identified a problem with a bolt in the power steering pump which had been working loose.
In these cases it would result in the power steering feeling sluggish and drivers would be most likely to notice the problem when parking.
There had been no complaints from customers and Mercedes believes the problem involves about one per cent of the cars it has recalled, the spokesman added.
"We are checking every single car and writing to all affected owners inviting them to bring their vehicles in to their local dealer.
"This is purely a precautionary matter and we are not aware of any incidents or accidents as a result of the problem."
The repair work, which entails tightening the bolt, will take no than 30 minutes.
Motorists face £500 cash loss
Motorists are losing up to £500 when it comes to selling their car, research by Manheim Auctions has revealed. One in ten motorists fail to prepare their motor before they sell, and with every dent, scratch and scuff translating into cold hard cash, sellers will find their car is worth less than they thought.
For example:- Damage to alloy wheels could reduce the value by as much as £50 to £150 per wheel
- Cracked headlights impact on values by £75 to £150
- Damaged windscreen can devalue a car by between £100 to £300
- Poor condition carpets and front seat upholstery can affect values by between £100 and £350
- Minor accident damage can affect the value by up to £250 per panel
- As well as vehicle condition, a typical three year old car without full documentation and no service history could see as much as £200 to £500 being knocked off the value
The findings come as the government is set to announce crippling spending cuts that will hit British motorists hard, making it even more important to get the best price when selling a car.
"It's imperative that motorists do everything they can to maximise what their car is worth," commented Craig Mailey, Client Services & Marketing Director, Manheim Auctions. "Ensuring a car is clean and in the best condition possible will go a long way to getting the best resale price."
"At Manheim Auctions we recommend sellers use a smart repair service such as Dent Wizard. For the best finishing touch have your car professionally valeted, no-one wants to buy a dirty car and you need to do as much as possible to create 'kerb appeal'. Investing in preparing your car for sale will save you money in the long run and ensure your car achieves the best resale price possible."
Motor Trader acquires MotoringJobs.com
Motor Trader has launched a new online recruitment service having acquiredwww.motoringjobs.com from Haymarket Media Group, the publisher of Autocar and What Car?
This well established recruitment service offers a plethora of jobs across the UK automotive sector and is a powerful tool for both recruiters and those planning their next career move.
The site is updated daily and typically features over 200 sales, marketing, finance and management jobs making it an essential one-stop jobs and recruitment service for the automotive industry.
"This acquisition marks an important extension of the Motor Trader portfolio which will appeal to a wide range of professionals in the UK automotive sector," said Curtis Hutchinson, editor.
"The site is a proven and powerful recruitment tool which we will be developing to maximise its potential for companies seeking staff and individuals looking for new jobs," he said.
DATED: 13.10.10
FEED: MT
Marshall doubles turnover with completion of Mercedes deal
The acquisition covers seven sites in Blackpool, Preston, Blackburn, Bolton and South Lakes. The Blackpool and Bolton sites also represent Smart.
The new dealerships bring the Marshall Group's total to 62 businesses and the addition of the two new brands brings the Marshall portfolio to 25.
"This is a hugely significant deal for Marshall and the new businesses will
take our turnover to a running rate of around £675m, nearly double our
2008 turnover," said Daksh Gupta, Marshall's chief executive.
"This is a great acquisition for Marshall which fits our stated strategy to expand our group with strong partnerships in scalable territories. The North West represents a great opportunity for us with one of the world's leading brands."
As part of the acquisition, all 170 people working at the five sites have transferred to Marshall.
DATED: 13.10.10
FEED: MT
SMMT signals end of British Motor Show
The prospects of another British International Motor Show look bleak after the Society of Motor Manufacturers and Traders said the "world had moved on".
Paul Everitt, SMMT chief executive, said: "The British International Motor Show had a limited role in generating a return on investment for the car industry in Britain. Lots of people go, but it has no real benefit for carmakers.
"Consumers liked the Excel show in London, but we take the view that without the cost of a single industry show we can support other events."
These could include two Goodwood motoring festivals and a free Motorexpo at London's Canary Wharf.
DATED: 13.10.10
FEED: AM
