Friday, October 21, 2011
Saab secures new funding deal with US investor
Saab has secured a second round of funding in the form of £44.6 million from US private equity group North Street Capital to help the business continue as it restructures.
North Street Capital has paid £6.32m for 2.38 million shares in Saab’s parent company Swedish Automobile and the remaining £37.5m has been provided as a loan.
Saab has accepted the deal as it now doesn’t believe it will receive promised funds from Chinese investors Zhejiang Youngman Lotus Automobile and Pang Da in time.
Saab said in a statement: "Saab has doubts that the bridge funding of Youngman and Pang Da, of which a partial payment has been received, shall be paid in full on October 22, 2011."
Saab signed an agreement with Youngman on September 12 to borrow £61.1m in exchange for non-exclusive rights to Saab’s Phoenix architecture technology. It’s unclear what will happen to this deal now Saab has secured a different deal with North Street Capital.
The Swedish brand won approval on September 22 to go into bankruptcy protection in order to restructure its business.
Saab GB has said it’s still “business as usual” in the UK. Dealers have access to new and used car stock and the business has launched marketing campaigns offering free servicing deals on both new and used cars to help boost confidence.
There’s still no estimated date for when production will restart, but Saab GB will continue to operate the business in the UK as normal and has sufficient funding in place to meet all creditor obligations and will continue to pay all employees, dealers and suppliers.
Saab is offering UK customers two years’ free servicing on all approved used Saabs to attract more business into showrooms.
Matthew Bateman, used car business development manager at Saab GB, said: "“The offer of two years’ free servicing on all approved used Saab vehicles comes with many benefits.
"Not only does the plan provide customers with worry-free maintenance over the two years; it also offers the advantage of a significant cost-saving.”
DATED: 21.10.11
FEED: AM
Volkswagen product plans show no sign of abating
Volkswagen plans to launch critical new models into the city car, lower medium and upper-medium segments which will show new design flair and will bring new business to the brand.
However it will not build another coupe-convertible once production of the current Eos comes to an end, as the German carmaker expects the newly launched Golf Cabriolet to cater for these customers, said its head of marketing communications, Giovanni Perosino.
In the city car market, it will reveal a five-door version of its new Up at the Geneva Motor Show, followed by a sportier GT model later that year, and an electric version in 2013.
The three-door Up hits UK showrooms in February, followed two months later by the new Beetle.
Late 2012 will also see a global reveal of the 7th generation Golf, which Perosino said will truly impress current Golf owners and new customers.
He also revealed that the replacement for the Passat CC, to be revealed at the Los Angeles Motor Show next month, will be badged simply as the CC, to distance itself from Passat's association as a business car and to establish itself as a stronger retail proposition.
DATED: 21.10.11
FEED: AM
Smart Ar5e Answers
SMART ARSE ANSWER 5
It was mealtime during a flight on a British Airways plane:
"Would you like dinner?" the flight attendant asked the man seated in the front row.
"What are my choices?" the man asked.
"Yes or no," she replied.
SMART ARSE ANSWER 4
A lady was picking through the frozen Chickens at a Woolworths store but she couldn't find one big enough for her family.
She asked a passing assistant, "Do these Chickens get any bigger?"
The assistant replied, "I'm afraid not, they're dead."
SMART ARSE ANSWER 3
The policeman got out of his car and the Teenager he stopped for speeding rolled down his window.
"I've been waiting for you all day," the Cop said.
The kid replied, "Well I got here as fast as I could."
When the policeman finally stopped laughing, he sent the kid on his way without a ticket.
SMART ARSE ANSWER 2
A lorry driver was driving along on a country road. A sign came up that read " Low Bridge Ahead."
Before he realised it, the bridge was directly ahead and he got stuck under it..
Cars were backed up for miles. Finally, a police car arrived.
The policeman got out of his car and walked to the lorry's cab and said to the driver, "Got stuck, eh?"
The lorry driver said, "No, I was delivering this bridge and ran out of diesel!"
SMART ARSE ANSWER OF THE YEAR 1
A teacher at West Australian University reminded her pupils of tomorrow's final exam.
"Now listen to me, I won't tolerate any excuses for you not being here tomorrow.
I might consider a nuclear attack, a serious personal injury, illness, or a death in your immediate family, but that’s it, no other excuses whatsoever!"
utter sexual exhaustion?"
The entire class was reduced to laughter and sniggering. When silence was restored, the teacher smiled at the student, shook her head and sweetly
said, "Well, I would expect you to write the exam with your other hand."
Saab administrator throws in towel
STOCKHOLM -- The administrator in charge of Saab's reorganization said he had sent an application to a Swedish court to end the process because there was not enough cash to save the carmaker.
"The money is not enough to continue the reorganization," Guy Lofalk told Reuters on Thursday. "Now, an application (to terminate the reorganization) has been mailed. It should be on the court's desk tomorrow."
Lofalk said $70 million promised by U.S. private equity company North Street Capital on Thursday for Saab was far from enough to continue reorganization.
He said Chinese investors Zhejiang Youngman Lotus Automobile Co and Pangda Automobile Trade Co. are keen to buy Saab but have failed to reach an agreement with Saab's current owners.
Saab owner Swedish Automobile said it will contest the application and request for continuation of the voluntary reorganization process. The company will apply at the court for the replacement of Lofalk as administrator, it said in a statement.
Lofalk said he was told by authorities in China that Youngman and Pangda had the financial muscle to save Saab.
"I can just say that the parties didn't manage to reach an agreement on a sale," he said.
The Chinese companies signed a non-binding memorandum of understanding in June to take stakes in Saab for a combined 245 million euros.
Chinese authorities have yet to give a green light on the two taking ownership in Saab.
DATED: 21.10.11
FEED: ANE
Thursday, October 20, 2011
Alec Murray back as RMI chairman
Alec Murray has returned to the Retail Motor Industry Federation as its new chairman.
Murray took over from acting chairman Colin Parlett on October 1. He was previously chairman of the NFDA in the mid-nineties, then from 2005-2006. He also acted as RMI chairman from 2006-2008.
Murray’s previous roles have included chief executive of Quicks Group and deputy chairman of Caledonia Motor Group.
Murray said “I am delighted to be back as chairman of the RMI and look forward to once again supporting the industry through the challenging times ahead.
“The RMI’s proposed restructure will ensure it represents its member’s views, concerns and interests at all levels and across all sectors. This is an ethos I fully support and will continue to promote this throughout the RMI in the future months.”
DATED: 20.10.11
FEED: AM
Vertu Motors sees profits fall 16% in line with expectations
Vertu Motors saw pre-tax profits fall by 16% to £4.1 million for the six months August 31, 2011 but the drop is in line with the group’s expectations.
Vertu’s interim results show that revenue grew by 7% and gross margins rose slightly from 11.5%to 11.6%with aftersales marging improving in "all areas".
Like-for-like used car volumes declined by 5.9% which Vertu said reflected the "tougher consumer environment".
Robert Forrester, Vertu chief executive, said: “I am pleased to report that against the backdrop of continued pressure on the UK consumer, the group has continued to deliver and invest in its growth strategy.
“We have opened a further seven sales outlets since March 1, 2011 taking the total to 82.
In addition, our new like-for-like retail car volumes were 10% better than the market and aftersales continues to be robust. The group continues to generate substantial amounts of cash.
“With our strong, ungeared balance sheet and the on-going significant operational cash generation Vertu Motors is clearly in a position where current market weakness will create further acquisition opportunities in line with our growth strategy.”
The group said consolidation opportunities were increasing and it has un-utilised facilities of £35m in addition to cash resources.
Forrester is expecting Vertu’s full year results to be “at the lower end of the range of market expectations” due to the challenges in the current market.
The business has reduced overheads in the six month period on a like-for-like basis with “strong financial controls and cost focus”.
Vertu’s balance sheet is underpinned by a freehold and long leasehold property portfolio (including assets held for resale) of £75.7m (31 August 2010 : £72.6m).
DATED: 20.10.11
FEED: AM
Lexus adds sports trim for CT 200h
Lexus has added some extra visual muscle to its CT200h with a new F-Sport trim option.
The CT200h F-Sport features 17-inch dark-finish alloys, a larger rear spoiler, flared side skirts, a mesh front grille and new aero-styled bumpers front and rear. Interior specification adds F-Sport steering wheel with a flat bottom section and aluminium pedals and scuff plates.
Adding to the specification of the SE-L grade, the F-Sport gains cruise control, F-Sport black leather upholstery, heated front seats, electric driver’s seat adjustment, auto-dimming (electrochromatic) electrically retractable door mirrors and a rear parking camera that links to a display in the rear-view mirror.
Lexus has also tuned the CT 200h F-Sport’s suspension for a “more engaging drive”.
The new Lexus CT 200h F-Sport is available to order now, with first UK deliveries in January. Prices start at £27,850.
DATED: 20.10.11
FEED: AM
Pendragon focusses on used cars to deliver profit
Pendragon will focus on used cars and aftersales to help it deliver profit this year.
According to the AM100 topping group, aftersales remain the core area of profitability for the business.
Aftersales turnover declined by just over 2% in Q3, but gross aftersales profit margin in the quarter improved by 110 basis points over the prior year, with gross profit flat for the quarter.
Used car volumes increased by 18% in Q3 while new car volumes fell by 10.3% with Stratstone and by 10.8% in its Evans Halshaw business.
Pendragon is using a vehicle health check programme to stimulate aftersales work and has developed “a number of other initiatives”.
The group saw “significant volume growth” in used car sales in Q3 with like-for-like volumes up 18%.
During July and August Pendragon had observed a decline in margin against the prior year. However, used car margins have recovered for Pendragon strongly in September and it expects to see the normal seasonal patterns in used car margin in the fourth quarter.
Overall like for like used retail gross profit in the nine months to date was 1.2% ahead of the prior period.
In a statement to the stock market, Pendragon said: “Despite the increasingly challenging macro-economic environment and continued economic uncertainty, underlying trading performance remains in line with our expectations for the full year.
“Used performance continues to be a differentiator for the group and we believe this will continue in the final quarter with further recovery in used margin.
“The new retail car market is challenging, particularly for some of our franchises in the volume sector.
“However, we expect stronger performance from some of our prestige franchises in the fourth quarter.”
DATED: 20.10.11
FEED: AM
Tuesday, October 18, 2011
Eastern Western Group add first Seat franchise
Eastern Western, the top 30 AM100 dealer group, will add the Seat franchise to its portfolio for the first time with a new showroom in Benton, Newcastle at the end of November.
Trading as Western Seat, the new outlet on Bellway Industrial Estate will have a six-car showroom and a six-bay workshop.
Staff at the dealership are currently undergoing training on site and at Seat’s National Learning Centre.
Paul Johnson, Western Newcastle general manager (pictured), which remains a Saab dealer and was recently appointed an authorised Ford Service Centre, said: “2011 has been Seat’s best ever year in the UK with the company taking a record share of the market while other manufacturers struggled.
“And with a raft of new models, including the Mii city car just around the corner 2012 looks sure to be even better.”
Johnson said product was only part of the story at any dealership and the quality of the care and service the new showroom provides to customers will be “the most important ingredient in our success”.
DATED: 18.10.11
FEED: AM
Vindis open Bentley dealership in Cambridge
The Vindis Group will open a new Bentley showroom in Cambridge in mid-December.
The new dealership is Vindis’ second Bentley site building on its Bentley Norwich business.
Bentley Cambridge will be situated on Milton Road, next to Cambridge Volkswagen; also part of the Vindis Group.
Victoria Stubbs, Vindis marketing and operations manager, said: "Bentley Cambridge will adopt the same work ethic and customer focused attitude that sets Bentley Norwich above other dealerships."
Bentley Norwich won ‘Top Bentley Dealership in the UK 2010’ and ‘The Global Bentley Product Knowledge Challenge 2011’.
DATED: 18.10.11
FEED: AM
Monday, October 17, 2011
Saab receives first part of £61.1m bridging loan
Saab has received the first bridging loan payment of €70 million (£61.1m) from one of its Chinese partners Zhejiang Youngman Lotus Automobile.
Further payments under the amended and final bridge loan agreements signed between Youngman and Saab are expected to be made during this week and by October 22 of this year.
Saab is now confident it has the money it needs to make it through its restructuring period.
Saab intends to repay its bridge loan within the next “few weeks” with the proceeds of the €245m equity investments from Youngman and its other Chinese investor Pang Da, which are still subject to approval.
Saab signed an agreement with Youngman on September 12 to borrow £61.1m in exchange for non-exclusive rights to Saab’s Phoenix architecture technology.
The Swedish brand won approval on September 22 to go into bankruptcy protection in order to restructure its business.
Saab hopes bankruptcy protection will give it time to secure new funding promised from Chinese investors.
Two Swedish unions had applied for the company to be declared bankrupt, because it has been unable to pay wages.
DATED: 17.10.11
FEED: AM
Benfield buys Colebrook and Burgess
Benfield Motor Group has taken over Audi franchisee Colebrook and Burgess in a deal which will add £140m turnover to its business.
The acquisition includes Audi centres in Newcastle, Tyneside, Wearside and Teeside plus a bodyshop, preparation centre and head office facility. All traded as North East Audi.
All 279 Colebrook and Burgess employees have transferred to Benfield with immediate effect this afternoon.
Its previous owners and directors, Andrew Maidwell and John Hutton, have sold in order to pursue other interests outside of the motor industry.
The addition means Benfield’s group turnover will now be more than £500m and its dealership network now numbers 35 across the north-east of England, Teesside, Yorkshire, Cumbria and south-west Scotland.
Mark Squires, Benfield’s chief executive, said it was a “very significant development” in the growth of Benfield Motor Group.
“The Audi franchise is arguably the most valuable franchise in motor retailing and is currently the fourth largest distributor in the UK.
“Colebrook and Burgess is a well run business with family values and a positive and proactive approach to customer service.
“This is a natural fit for Benfield. It’s a highly regarded business with great people and there are obvious synergies between the two businesses which we will explore in the coming months ahead”, he added.
Benfield managing director Nigel McMinn (pictured) is now in operational control of the new businesses.
Andrew Maidwell, Colebrook and Burgess’ managing director, said he had given careful consideration to the best options for the business and its employees, and considered Benfield Motor Group was an independently family-owned business with very similar values to his own.
“From a personal point of view it was very important to me that the new owners of the business would be capable of developing the business further and continue to recognise the values of our staff and North East Audi well into the future,” Maidwell added.
DATED: 17.10.11
FEED: AM
