Friday, December 02, 2011
BMW and Toyota announce diesel and hybrid collaboration
BMW and Toyota have signed a new technology agreement which will see the German brand provide 1.6-litre and 2.0-litre diesel engines for models in Europe.
The deal will also see both companies working together to develop next-generation lithium-ion battery technologies for hybrid cars.
Although details of which models will receive the diesel engines have not been revealed, it is likely that among the first will be the Avensis and Auris models built at Toyota's factory in Burnaston, Derbyshire.
Didier Leroy, president and chief executive officer of Toyota Motor Europe, said: "Engineering work has already begun and we will start taking supply from BMW from 2014.
“I can't say which models yet, but we will focus first on vehicles built locally in Europe."
TME also has a car plant in Valenciennes, France, which assembles the Yaris. Leroy added that the two companies have been working on putting the deal together since April this year.
The move will help Toyota meet EU diesel emissions targets and it currently does not have a 1.6-litre diesel in its line-up.
BMW's product development chief Klaus Draeger said that this is the first time the German carmaker has worked with a Japanese vehicle manufacturer.
Toyota executive vice president Takeshi Uchiyamada added: "Whoever produces the best battery technology in terms of cost, quality and functionality will win the most customers. This agreement will allow us to produce next generation batteries faster and to a higher level."
The two companies said that there are no current plans to expand the collaboration into joint shareholdings.
DATED: 02.12.11
FEED: AM
Lookers secures banking facilities to help fund growth
Manchester-based Lookers has secured an extension to its banking facilities which it says will help it continue its "acquisition led strategy".
The £115m tailored facility has been provided by a banking consortium led by Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB), with Barclays Corporate, Handelsbanken Capital Markets, Svenska Handelsbanken AB (publ), HSBC, Lloyds Bank Corporate Markets, Yorkshire Bank and RBS as Joint Mandated Lead Arrangers. The banks were advised by Amanda Gray and Richard Oman of Addleshaws Manchester office.
Lookers’ motor division consists of 119 franchise dealerships across the UK, representing 33 car marques across 71 sites, and it also owns independent parts division which includes FPS.
Robin Gregson, finance director at Lookers, said: “Lookers is confident that we can continue to grow the business, deliver satisfactory financial results and use our balance sheet strength to pursue strategic growth opportunities as and when they arise.
“We benefit from working with a banking group that understands and supports our business and the new funding facilities provided by the RBS led syndicate will give us the financial flexibility to develop the company even further.”
Lookers acquired Get Motoring UK, which trades as Vehicle Rental Services (VRS) in March this year.
The group has identified the car parts business as a key growth target and the new financing contains a flexible £30m ‘accordion’ component that Lookers’ management can access if strategic acquisition opportunities arise in either the motor or parts divisions.
Lookers has seen new car retail sales rise by 5.4%, used car volumes up 5% on a like-for-like basis and its parts division delivered a “record trading performance” in the first six months of 2011.
DATED: 02.12.11
FEED: AM
Tuesday, November 29, 2011
SAAB Dealers - taken by surprise
The 58 Saab franchised retailers across the UK were taken by surprise by the announcement that Saab GB has gone into administration, according to Richard Sedgwick, dealer principal at Turners Hill Garage, Crawley, and former Saab dealer council chairman.
“Everything was normal last night and this morning,” said Mr Sedgwick. “I could have dropped down when I was shown the internal press release as I talked to a customer on the showroom floor. There was no advanced consultation.”
Auto Retail Network has been told Saab GB is planning an email question and answer session with retailers who, at the time of writing, had only received the same press release as the media. Apparently Saab AB in Sweden is operating as normal.
“I must emphasise that Saab GB has acted in a straightforward, honourable and honest manner,” said Mr Sedgwick. “Events appear to have been beyond its control. I believe they have been promised money and it has not materialised. So Saab GB called in the administrators as part of voluntary liquidation.
“The UK operation has been very straight and kept us in the picture up until now. Parts supply has actually got better and warranties are being honoured but there have been no cars ordered because the factory has been shut. So there is no way we can provide delivery dates.”
Mr Sedgwick said some customer orders had been cancelled due to the uncertainty but legal obligations on warranty had been honoured.
He added: “We have obligations to our customers and no one is off the road because of a shortage of parts. Sweden’s parts operation has been very helpful and Saab owners have not been inconvenienced.”
It is reported that the administrator has taken over running the business from Saab GB managing director, Charles Toosey, the former finance director who has led the business since Jonathan Nash moved to a role in Saab Europe. Calls to the Saab GB headquarters were not being answered and a further announcement is expected in the next few days.
DATED: 29.11.11
FEED: ARN
SAAB GB enters administration
Saab GB, the wholly-owned subsidiary of Swedish Automobile NV (“Swan”), which has exclusive rights to distribute Saab cars and parts in the UK, has been place into voluntary administration this morning.
The move follows months of intensive negotiations and a long period of suspended production and tight liquidity situation at Saab Automobile AB. With immediate effect, David Dunckley and Daniel Taylor of Grant Thornton UK LLP have been appointed joint administrators.
In a brief statement, the company said it employs 55 people in Milton Keynes and distributes the cars and parts to a 58 strong dealer network across the UK of which 20 are "Saab only" sites. Saab City, a wholly owned subsidiary of Saab GB employing 65 people, operates two Saab motor dealerships, one in Wapping and a smaller site in Fulham.
The board of Saab GB said it is of the opinion that administration gives the company and creditors the necessary legal protection until it has secured the required funding for the company. The appointment of the administrator is effected by the directors of Saab GB.
A Saab GB customer hotline has been set up on 0845 300 9593 but there was no news of how Saab’s franchised retail network should respond. Auto Retail Network is seeking further clarification.
Once appointed, the administrator will take on the management powers of the directors. Swan said it continues discussions with potential investors regarding the sale of Saab Automobile AB and Saab Great Britain Limited.
Swan has received a conditional funding commitment from Chinese manufacturer Youngman for the payment of the wages of the employees of Saab Automobile and for the continuation of the activities of Saab GB. But Saab Automobile and Saab GB have not yet received this funding.
The UK is Saab's largest sales market outside Sweden.
DATED: 29.11.11
FEED: ARN
Monday, November 28, 2011
Cambria profits rise on decreased turnover
Cambria Automobiles has reported record results for the year to 31 August 2011 on decreased revenues but improved profit before tax.
Revenues dropped 4.8 per cent year-on-year to £373.3m with profit before tax rising 16.7 per cent from £4.2m to £4.9m, the group’s fourth successive year of growth.
Cambria, which is an AIM-listed group, blames the removal of the scrappage scheme for the fall in turnover.
Mark Lavery (pictured), Cambria's chief executive said the results showed another strong year’s performance for the group in a difficult market with the business reaping the benefits of cost control.
“While the ending of the government sponsored scrappage scheme reduced revenues, the cost reduction actions taken during the year more than offset the reduction in revenues,” he said.
“This is the fourth successive year in which Cambria has delivered significant earnings growth and high level of return on shareholders’ funds,” he said.
Like-for-like new car volumes, excluding scrappage sales from the previous year, were up 9 per cent which Lavery attributed to growth in its premium franchises. He confirmed this is an area of the business he plans to grow through acquisition.
“Yes we are looking. There is an opportunity in premium and upper premium,” he said.
Cambria currently represents Aston Martin and Jaguar in upper-premium and Alfa Romeo, Honda and Volvo in premium.
Lavery said the group, which was founded in 2006 after the acquisition of Sudbury Motors, is still on course to be a £1bn turnover business although the original five year time scale has been extended. He also said the outlook for car retailers in 2012 remains challenging.
“There’s pressure from exchange rates and inflation. It’s challenging. This is the new business as usual,” he said.
The south-east based group jumped 10 places in the recently published Motor Trader top 200 which now rates it at number 18.
Cambria’s financial highlights (year ending 31 August 2011)
- Fourth successive year of increased underlying PBT, achieving £4.9m compared with the previous year’s £4.2m
- Total revenue decreased 4.8% year-on-year to £373.3m
- Gross profit decreased by 1% year-on-year
- EBITDA increased by 17.9% to £7.2m Underlying earnings per share increased to 3.63p from 3.06p
- Group net assets at £19.5m underpinned by £22.6m of freehold and long lease-hold property
- £0.3m of goodwill on balance sheet
- Net debt reduced to £1m from £4.4m, gearing at 5.2%
- Underlying return on shareholders’ funds of 22.7 %
- Maiden dividend of 0.3p per share
Mercedes-Benz to axe Maybach
Mercedes-Benz is to axe the Maybach brand in 2013 due to low sales.
The company has ‘sold’ 114 in the UK and 3,000 worldwide since launch in 2002.
These figures are not registrations as a proportion were diplomatic cars which do not go through the registrations process.
In the UK the brand was sold through one dealership, the flagship Mercedes-Benz World in Weybridge.
The gap left by the Maybach will be plugged by the next-generation S-class, which will be offered in three wheelbase formats, including a top-of-the-range S600 Pullman.
The Maybach brand was resurrected in 2002 after it failed to buy Rolls-Royce and Bentley from then owner Vickers.
The car was available in 57 and 62 variations, named after their lengths of 5,735mm and 6,170mm respectively.
Owners have included the actor Samuel L Jackson (pictured).
DATED: 28.11.11
FEED: MT
OFT and HPI warning on used cars
The Office of Fair Trading (OFT) has stated that 13% of the 56,000 people who complained to OFT-managed Consumer Direct this year, reported misleading claims or omissions made by used car sellers.
Used car history checker HPI has warned that deliberate omissions on car finance agreements can have serious ramifications, highlighting the fact that a quarter of vehicles checked were still subject to outstanding finance and liable to be claimed back by the finance company.
Seventy percent of complaints received by Consumer Direct were related to faults with cars and 7% reported substandard service from sellers. One-in-three of the used cars checked turned out to have a fault with their history, and an average of 19 cars registered every day turned out to be stolen. Six percent had a mileage discrepancy.
As the OFT points out, £85m is spent each year in the UK, at an average of £425 per customer, to fix faults that dealers are obliged to correct.
“Many consumers are still experiencing problems when buying a used car,” said HPI consumer services manager Nicola Johnson. “The harsh reality is, as the OFT’s figures confirm, many people come a cropper after they have parted with their money.”
Michele Shambrook, operational delivery manager at the OFT said: “We continue to receive a high number of complaints, which are often due to some traders refusing to deal with legitimate complaints or provide appropriate compensation.
“Dealers who fail to treat customers fairly or sell cars that are defective could face enforcement action.”
Last week the OFT took ‘enforcement action’ against used car supermarket group Carcraft for not clearly explaining terms and conditions on financial products, carrying out comprehensive vehicle checks as advertised, or meeting legal obligations to repair or replace vehicles.
The move coincided with the launch of the OFT’s ‘Know Your Consumer Rights’ campaign with an online video to make buyers aware of problems and solutions when purchasing a used car.
The campaign reminds car buyers that any contract with a seller includes consumer rights under the 1979 Sale of Goods Act, and encourages consumers to insist on written agreements and to contact traders as soon as possible if a used car is not as promised.
DATED: 28.11.11
FEED: MF
Suzuki starts proceedings against VW
Suzuki has started arbitration proceedings against Volkswagen to try and force it to dispose of its stake in the Japanese carmaker.
Volkswagen bought a 19.9 per cent stake in Suzuki in 2009 but relations deteriorated with Suzuki ending the relationship in September after VW accused it of breaking an agreement.
In a statement, Suzuki said: “Suzuki Motor Corporation (“Suzuki”) is today commencing arbitration proceedings in London with the ICC International Court of Arbitration, in order to compel Volkswagen AG to dispose of its Suzuki shares to Suzuki or Suzuki’s designated third party.
“The arbitration proceedings follow Suzuki’s termination of its alliance with Volkswagen AG on 18 November 2011, and Volkswagen AG’s lack of response to Suzuki’s requests for the disposition of its shares to Suzuki or Suzuki’s designated third party.”
The VW deal with Suzuki had planned to give VW access to the fast-expanding car market in India where the Japanese carmaker is strong while Suzuki was get access to VW technology.
There was also to be would co-operate on new technologies but no co-operative deals emerged and the partnership imploded when Suzuki bought diesel engines from Fiat for its cars built in Hungary.
Volkswagen accused it of breach of contract while Suzuki countered with the accusation Volkswagen had not given access to new technologies.
DATED: 28.11.11
FEED: MT
Moneyway parent secures £25m on AIM
Secure Trust Bank, parent of the West Midlands-based non-prime specialists Moneyway, has secured £25m in capital investment since opening on the Alternative Investment Market (AIM) on 31 October.
The capital raised will be put in to acquisitions and growth as the bank, active in retail point of sale finance and personal unsecured lending alongside motor finance, funds its lending through money in customer accounts.
David Nield, lending director at Secure Trust Bank, said: “It’s not liquidity for lending. Moneyway is the trading arm of Secure Trust Bank. As a lender you need both capital and fundraising. We raise liquidity through cash deposits.”
The step in to AIM, with Hawkpoint Partners as nominated advisor and Collins Stewart Europe as nominated broker, is a move to secure the capital to expand Secure Trust Bank and Moneyway.
“We’re not reliant on other banks,” said Nield. “We have to point our own capital in to lending. The £25m is capital for the business. We’re in a very strong position because we’re not trying to renew.”
The AIM is the London Stock Exchange’s international market for small and medium enterprises which 3,000 companies have joined since 1995.
Begun in 2009, Secure Trust Bank and its car finance operation has grown in the wake of the credit turmoil of 2008 and the expansion of the non-prime market and now manages an outstanding loan book of £48.4m based on financing vehicles under 10 years old, valued at £15,000 or less and with less than 100,000 miles on the clock.
DATED: 28.11.11
FEED: MF
Heritage acquires Loders from administrators
Heritage Automotive, the Salisbury-based dealer group, has acquired Loders Motor Group from the joint administrators, for an undisclosed sum.
The deal covers certain assets including the Volkswagen car and van franchises in Dorchester, a VW and Skoda site in Yeovil. Also included in the purchase is an authorised body repair centre in Dorchester and the Skoda and Volkswagen Trade Parts Specialist franchises for Yeovil.
Heritage already represents Volkswagen, Audi and Peugeot across Wiltshire, Somerset and Bristol.
Earlier this week Skoda confirmed that Loder’s authorised repairer outlet, which represented the brand in Dorchester, would close.
“I am delighted that we have been able to successfully negotiate the purchase of significant elements of Loders Motor Group,” said John Cook, Heritage’s managing director.
“Loders has had a significant presence in Dorchester and Yeovil for generations. I am delighted that Heritage has been able to secure the futures of most of the Loders staff, whom I warmly welcome into the Heritage family.
“In taking on the Volkswagen Passenger Car and Commercial Vehicle businesses we have secured a significant geography across which we can represent the Volkswagen brand.”
Cook said the group was particularly pleased to be representing Skoda for the first time.
“It is a franchise which we have wanted to be a part of for many years.”
Heritage Automotive was formed in 1996 to represent VW and Audi in Salisbury. Later that year it expanded with the acquisition of Anthony Ince (Weston) which represented VW in Weston Super Mare. In 2003 it added a VW site in Bristol and in 2006 acquired The Oval Motor Company in Westbury giving it a further VW outlet and marking its debut with Peugeot.
The group’s portfolio also includes authorised body repair centres in Dorchester, Salisbury and Westbury, a Volkswagen Group Trade Parts Specialist agency in Yeovil, and a specialist used vehicle centre in Bradford on Avon which trades under the Motor Marque banner.
Earlier this month it sold its Yeovil Audi business to Poole-based Ocean Automotive. The purpose-built eight-car showroom site was also located on the Houndstone Business Park.
DATED: 28.11.11
FEED: MT
Caffyns half year profits take a hit
Caffyns, the East-Sussex based group, continued to trade profitably in the half year to 30 September despite tough trading conditions.
Group turnover fell to £86.7m from £103.8m with pre tax profits of £241,000 compared to £917,000 last time. Losses of £129,000 arose from the closure of a site in Sevenoaks. Caffyns is rated number 41 in the Motor Trader top 200.
The reduced turnover was in part due to the sale or closure of seven businesses which accounted for £12.3m of the reduction.
Over the half year new unit sales fell by 4.6 per cent on a like for like basis. Used car sales were down 8.9 per cent on a like for like basis with reduced margins due to increased competition.
Aftersales revenue fell by 3.3 per cent on a like for like basis although the company held market share. Caffyns said its focus on customer satisfaction had helped it fend off tough competition from independent garages.
Chief executive Simon Caffyn said: "This is a transformational time for Caffyns as we continue our drive to represent premium and premium-volume franchises.
“As such, we are making necessary changes to our business which, underpinned by a strong balance sheet, means we are well placed to take advantage of improvements in market conditions in the longer term and deliver value to all shareholders."
DATED: 28.11.11
FEED: MT
Cash Rich Cambria ready to buy
Cambria Automobiles has signalled its intention to continue expanding after a fourth successive year of increased profits. The group told shareholders its underlying profit before tax to the end of August grew by 16.7% to £4.9m, up from £4.2m in the previous year.
Chief executive, Mark Lavery, said: “I am pleased with the performance achieved by the group against the backdrop of challenging new and used car markets. We continue to use this market weakness to drive forward our buy-and-build strategy, utilising our strong balance sheet.”
The company has net assets at £19.5m under-pinned by £22.6m of freehold and long lease-hold property and has also negotiated an additional £5m, three year revolving credit facility to finance further acquisitions.
Strong cash flow during the year ensured net debt has been reduced to £1m from £4.4m , with gearing at 5.2% and the company was able to declare a maiden dividend of 3p a share.
Cambria has seen growth in used and aftersales with used car volumes increased 1% year on year and service hours increased 2% year on year but new car sales were down 11% year-on-year. The company said this was due to the decline in private registrations and the end of the scrappage scheme.
Total revenue decreased 4.8% year on year to £373.3m but the group delivered an improved gross margin which, combined with tight cost management, resulted in the improvement in net profit.
During the period, the group continued to integrate the ten additional businesses acquired in the previous financial year, six of which had been acquired from an administrator. On September 1 it completed the acquisition of its first Vauxhall dealership and Mr Lavery said he intends to make Vauxhall a primary brand partner as other opportunities arise.
The acquisition was the group’s eighth corporate transaction and takes the group to 27 locations representing 39 franchised outlets.
DATED: 28.11.11
FEED: ARN
