Saturday, December 11, 2010
Interest Rate Announcements
Tuesday, December 07, 2010
Four wheel drive web searches surge as winter hits
Online searches for 4×4 vehicles has soared in the last month according to the latest data from Autotrader.co.uk, the UK’s most viewed motoring website.
The website said 4X4 searches increased by 41 per cent from October to November as wintery conditions started to hit the UK.
Interest in the vehicles was highest in the north of England and Scotland, the areas most severely hit by heavy snow fall in recent weeks.
Searches in the Durham area rose by 116 per cent and Edinburgh by 107 per cent.
Surprisingly the vehicle experiencing the greatest increase in searches was the Daihatsu Terios.
DATED: 07.12.2010
FEED: MT
New managing director for Close Motor Finance
James Broadhead has been appointed as managing director of Close Motor Finance, the dealer finance specialist.
Broadhead has been with the finance house for 10 years and is promoted from the position of deputy managing director. He replaces Janet Wilson who has been appointed managing director of sister company Close Premium Finance.
Both mds appointments will report into Bob Golden, managing director of Close Brothers.
“I am tremendously excited by this opportunity to be able to build on what has already been established at Close Motor Finance. I will continue to work with our dealers to ensure their requirements stay at the forefront of everything we do. Through this we will further develop our unique market proposition and deliver growth and value to all,” said Broadhead.
DATED: 07.12.2010
FEED: MT
Monday, December 06, 2010
Fare rises 'spark car use increase'
Around two million people plan to change the way they travel to work in the next year to avoid public transport fare rises, according to a new report.
A survey of 3,000 people by job site reed.co.uk found that 7% plan transport changes purely to avoid fare rises.
An additional 6% plan to move house or job over the next 12 months solely to gain an easier commute to work, the study found.
Car sales slowdown continues despite impending VAT rise
Sales of new cars in the UK fell for the fifth month running in November, despite the looming VAT rise.
Registrations were down 11.5% versus a year ago, according to the Society of Motor Manufacturers and Traders (SMMT).
However, fleet cars sales rose 6% as companies sought to beat the January rise in VAT to 20%, and the SMMT said the 26% fall in private sales was less than expected for the same reason.
The government's Scrappage Incentive Scheme inflated sales last year.
The programme expired in May this year, and since July sales have been consistently below those recorded during the scheme's year-long operation.
Stripping out previous car sales linked to the scrappage scheme, the SMMT claimed in its November report that underlying sales were actually up 14%.
'Challenging' outlook
"Registrations are expected to fall next month, but demand may benefit from motorists looking to avoid the January VAT rise," said Paul Everitt, SMMT's chief executive.
"Next year will continue to be challenging as consumer spending tightens and the government's austerity measures take effect."
The SMMT expects car sales to be up 2% overall this year - thanks in part to a relatively strong December - but to then fall 5% next year.
However, David Raistrick, automotive partner at accountants Deloitte, played down the chances of a pre-VAT sales rush, saying he expects December figures to remain flat.
"Today's figures are a stark reminder of the challenges that lie ahead for the motor industry into 2011," he said.
"As consumer and business confidence remains unsettled, it is doubtful that either private or business sales will grow in the new year."
Meanwhile, diesel car sales continue to overtake those of petrol cars, accounting for 53% of the market in November, and 46% for the year to date.
Consumers unwilling to pay premium for franchised dealer
Research has revealed that consumers are unwilling to pay a premium when buying from a franchised dealer. It also suggested dealer group marketing of its brand has little influence on the car buyer.
In a survey on the Auto Trader website, 61% said they were not willing to pay more for a car from a franchised dealer than an independent. Of those who were, 70% would only pay up to £299.
A further finding in the survey, completed by 5,000 site users, was that dealer branding is not important in a purchase decision.
Revealing the findings at the AM Used Car Market Conference, Tim Peake, Auto Trader commercial director, said: “While franchised dealers can offer tens of thousands of examples of buyers who pay a significant premium over a non-franchise outlet, the lesson is that franchise dealers need to market their brand values, not just their brand.”
A total of 27% of survey respondents said they were prepared to buy a car online without seeing it. A further 33% said they were prepared to order a car online.
DATED: 06.12.2010
FEED: AM
Customers will look for 'used car bargains' in 2011
Used car values at auction are likely to remain relatively strong in the medium term as the wholesale market reacts to a shortage of good quality stock.
According to Roger Woodward, managing director of leading online auction company, CD Auction Group, dealers will need to be more selective about the vehicles they buy for stock, especially as major vendors such as fleet operators will be under pressure to hold onto cars for longer.
“We think 2011 is going to prove challenging in the used car market for both fleet vendors and traditional trade buyers such as car supermarkets and dealer groups,” said Woodward.
“There is no doubt there is going to be a continuing shortage of good quality, retailable stock and that means auction values will be strong for the right vehicles.
“But retailers will be cautious about over-paying for stock because consumer demand is uncertain while fleet operators wanting to ‘cash-in’ are likely to be held back by their finance departments.
Customers, both wholesale and retail, will be looking for bargains.
“We expect the end result to be a widening at auction of the value gap between good quality, read-to-retail stock and average cars.
"Dealers will need to be aware there is a limit to how much a customer is prepared to pay for a vehicle, especially in difficult economic times.”
Woodward is keen to differentiate between the short and medium term markets.
In the short term, he expects values to slip back because of the upcoming VAT rise and the traditional seasonal effect.
“Canny dealers used to buy at the end of December in order to take advantage of rising prices in the early months of the new year but I think they will be more cautious this Christmas,” he said.
“The VAT rise in January means they will have to absorb a 2.5% price increase on most cars sold at auction or raise their forecourt prices.
“We think many will stick on their hands or only bid for bargains.
"Vendors need to be realistic and take the money that’s on offer if they want to see their cars sold before Christmas. That creates a buying opportunity.”
The uncertainty in the market is likely to continue through January but it is stock shortages that will create the greatest imbalance in 2011, said Woodward.
“You have got to remember that, by mid-2008, many fleets had simply stopped buying new cars. These vehicles should be coming to the used market in 2011 and they would have been the bread and butter of the used car forecourt,” he said.
“New car sales to fleets were down by 7.1% in 2008 and a further 20% in 2009.
"New car sales to private buyers were down almost 15% in 2008. So, where are next year’s used cars going to come from?”
CD Auction Group is already seeing a rise in the average age of vehicles it sells from some of the UK’s major trade vendors through its online auctions.
The average age in 2008 was 35 months; in 2009 that stretched to 37 months and, in 2010, the average age of cars sold is 41 months
DATED: 06.12.2010
FEED: AM
GM and Chrysler start recruiting
General Motors and Chrysler are recruiting 1,000 new staff members each which marks a turnaround in the fortunes of the companies which were saved from collapse by government bailouts last year.
GM has started to hire engineers and researchers to work on a new generation of electric vehicles.
Chrysler said extra engineering jobs were needed to help cope with growth and expansion of its small and mid-size vehicle line-up which will be driven by it’s co-op with Fiat.
DATED: 06.12.2010
FEED: AM
Values of 4x4s rise in November – BCA
Auction house BCA, has reported renewed interest in 4x4s sold at its auction centres around the UK as the winter weather tightens its grip.
BCA spokesman Tim Naylor said: “As the temperature drops, we have seen 4×4 values rise quite sharply. Values for some models climbed by around 5 per cent in November, compared to similar vehicles bought in the previous month.
“However, even accounting for the rising prices following the early onset of winter, buyers should still be able to find a good deal on a 4×4 at auction.
“Nothing makes a four-wheel drive more attractive than a dusting of snow,” said Naylor. “And the last few days weather has certainly stirred interest in 4x4s.”
DATED: 06.12.2010
FEED: MT
GM boss wants to bring supply industry back to Wales
The chief executive of General Motors in the UK says he wants to bring the supply base for car manufacturing back to Wales.
Bill Parfitt, who grew up in Newport, says GM already uses 10 suppliers within Wales, spending £25m a year.
In an interview with BBC Wales' Wales@Work he talks about Vauxhall's new electric car.
He said Ellesmere Port in Cheshire stands a good chance of manufacturing it.
Mr Parfitt is also GM's chairman and chairs the supply chain group of the Automotive Council, which was set up to look at the long-term development of the industry in the UK.
He told the programme he has high hopes for the UK's industrial future.
'Under review'
His company already sources some parts in the UK and the amount has risen by £200m this year alone.
But Mr Parfitt wants to see that increase.
"We have 10 Welsh suppliers and we spend about £25m a year with them.
"There are five other potential Welsh suppliers which are under review currently.
"In the short to medium term in two-three years, there's probably £1.5bn of parts that could be purchased in the UK and longer term probably £5bn.
"Quite where Wales sits within that will depend but it has a long history of supplier base - it is in good shape.
"Quite how much it gets of the £1.5bn will depend on suppliers but it is our intention to bring as much as we can back to the UK and my personal intention to bring as much as I can back to Wales."
Mr Parfitt's personal hope is that the new Ampera E-Rev, short for extended range electric vehicle, will be built at Ellesmere Port, which employs a high proportion of Welsh workers.
The Ampera marks a move forward by GM Europe following last year's crisis, which saw its parent company General Motors (GM) file for bankruptcy, only to be rescued at vast expense by the US taxpayer.
Mr Parfitt said: "They will be imported from America initially but then of course as and when they take a hold, and they will, the UK will be the largest single market for this vehicle across Europe, so consequently, if we make second generation Ampera in Europe... Ellesmere Port stands right in the front- ready, willing and able.
"It's a model of efficiency, quality and reliability so I think Ellesmere Port stands a very good chance but it will be a commercial decision and we will have to pitch for it alongside other plants."
Audi A7
A strong, chic design (the most interesting Audi for some time) and an elegant but high-tech interior, the A7 is an alluring proposition for those looking for something a little different from the usual premium saloon.
Although not following the BMW 5-Series GT's positioning as a 'crossover', the concept of large premium hatchbacks doesn't have a glorious history. Also, the new A6 saloon is due soon and bound to feature much of the interesting elements of the A7.
Competing against the other niche premium models, the A7 is arguably more handsome than the 5-Series GT and more practical than the Mercedes CLS, but whether any of these models represent good value over the standard 5-Series, E-Class or Jaguar XF is down to personal choice.
Until the new A6 breaks cover, the A7 has an opportunity to make its mark. Of course the premium large car segment has some fantastic products, and the slightly larger budget could mean buyers could always be tempted into a premium brand SUV.
