Friday, January 07, 2011
Free financial compliance tool
ITC Compliance has launched a new, free tool to help dealers ensure they do not mis-sell finance products.
Matt Dyer, ITC’s chief executive, says the real threat to dealers in the future comes mainly from the Financial Ombudsman Service, not the Office of Fair Trading.
“The work done by finance companies means it is unlikely that a dealer would breach OFT rules.
"But the new Consumer Credit Directive coming into effect on January 31 makes it imperative that dealers have, and can demonstrate, an audit trail to prove that they are not mis-selling finance.
"Our free software provides exactly that in a format that can be easily integrated into the sales process.”
ITC research shows that two groups are most at risk: franchised dealers selling other brands of finance in addition to that provided by their manufacturer and independent, non-franchised used car retailers.
“The lack of an audit trail leaves the door wide open for unscrupulous buyers, claims management companies and even disgruntled ex-employees to cause mischief by alleging mis-selling.
"Complaints management companies are looking for ‘the next big thing’ after PPI reclaims and if dealers aren’t seen to be fully compliant with the new directive then they could find themselves having to pay £500 per claim in ombudsman fees, even if no grounds for complaint are found.”
Simon Barrass, group F & I director at JCT600, said: "The system ticks all the boxes for us and is a vital added safety net; especially because the financial ombudsman deals with consumer credit complaints.
"As a group we deal with 14 different finance houses all of which have provided us with great CCD systems but obviously none of them can provide us with an audit trail showing how we arrived at the decision to propose the customer to them. In my opinion ITC's initiative to provide this free software can only be good for dealers."
To register for your free copy of the ITC compliance CCD software go to www.itccompliance.co.uk/?page=ccd
DATED: 07.01.11
FEED: AM
Motor Codes to strengthen position in 2011
Motor Codes, the government-backed, self-regulatory body for the automotive industry, is set to raise the bar for customer satisfaction in 2011 and increase credibility for subscribing garages, through top-level links to government.
2011 sees the beginning of a new 'tough but fair' era for Motor Codes under the watchful eye of the newly appointed Chairman of the Motor Codes advisory body, ICAP (Independent Compliance and Assessment Panel). As Chairman, Ron Gainsford, Chief Executive of the Trading Standards Institute, will intensify the monitoring of each Code, concentrating efforts on the growth of the Service and Repair Code. His role will become increasingly vital to ensure subscriber standards continue to be met and maintained, while only the best garages are promoted to motorists.
Internally, Motor Codes has announced the appointment of Chris Mason to Managing Director and he points out that the increasing support of Motor Codes is good news for motorists, "There is now a Motor Codes garage in every major town and city of the UK, which means greater peace of mind for motorists. We have expanded our motorist advice team, providing a free, independent advice and conciliation service, maintaining customer satisfaction levels and greatly reducing potential disputes for subscribers."
An important part of the 2011 activity is the annual Golden Garages competition. Launching on 10 January, it will profile the UK's top 50 service and repair centres, identifying examples of best practice locally and nationally. The competition will conclude in April when the UK's Golden Garage will be revealed.
Electric cars not accessible 'in next five years'
The majority of global car executives do not foresee a reasonably priced electric vehicle being available on the mass market in the next five years, a survey has suggested.
Many also believe that electric cars will not be affordable without government subsidies, KPMG said.
But they do think that the market for electric cars will be the fastest growing sector in the market.
Carmakers are investing in electric vehicles to reduce carbon emissions.
This is to both hit emissions targets and satisfy consumers' growing desire for fuel efficient cars.
The survey found that 91% of consumers cited fuel efficiency as the single most important factor when choosing a new car.
Some carmakers, such as Renault and Nissan, are pinning their hopes on pure electric cars.
Others, such as Toyota and General Motors, prefer hybrid technology, which combines both electric and petrol engines.
Close Motor Finance opens branch in Northern Ireland
Close Motor Finance has opened its 12th UK branch, and its first in Northern Ireland.
The premises, in Lisburn, follows the company's expansion into Northern Ireland last year.
Branch manager is Gary McAdam, who joined in June.
“We have had a great response from car, motorcycle and LCV dealers, signing over 190 dealerships in our first few months of trading.
"With the branch opening in the province however, we expect an increase in supporting dealers given that the Close Motor Finance model is based upon local ownership and the personal touch a local branch can deliver”.
The new branch has also provided an opportunity to expand the Northern Ireland team, with an additional three internal staff already recruited to support the existing sales personnel.
DATED: 07.01.11
FEED: AM
Nissan reshuffles corporate sales team
Nissan Motor (GB) has made a number of changes within its corporate sales department.
James Douglas, Nissan’s current fleet sales director has been promoted to corporate sales director, replacing Tony Lewis.
Lewis has moved to Nissan Europe to take up the position of director sales and marketing, light commercial vehicles business unit.
Douglas joined Nissan in 1998 as area fleet manager and held several sales and marketing roles within the company before becoming fleet sales director in 2007.
James has been replaced by Andy Woodhall, who was previously a regional sales director for Nissan.
Douglas said: “I’m delighted to be taking over the corporate division during such an exciting time.
“Nissan is one of the fastest growing brands in the UK with considerable market share growth.
“Innovative new product such as the all-electric LEAF and Juke crossover make the marque more relevant than ever for corporate buyers.”
DATED: 07.01.11
FEED: MT
Saudi plans $500 million car manufacturing company
Saudi Arabia plans to start up its first car manufacturing company with a capital of $500 million and expects a prototype within two years, state media reported on Sunday.
Riyadh-based King Saud University's President Abdullah al-Othman signed on Sunday a memorandum of understanding with a South Korean car manufacturing firm to set up the new company.
"(The company) will have a capital of about $500 million," Othman said, quoted by the state news agency SPA.
Up to 15 percent of the financing for the new venture is to be provided by the university's investment arm, Wadi al-Riyadh Technology, while 30 percent will be covered by the Korean firm. The rest will be offered to investors, the agency said.
A prototype of an economic car suitable for local use will be ready within the next two years, Othman said.
Othman said he hoped that Saudi Arabia could export its first car to other Gulf states as well as North African countries.
Saudi Arabia, the largest Arab economy, is heavily dependent on oil and is trying to diversify its revenue to other sources.
