F&I Management & Training

Police have closed the M6 Toll motorway in Staffordshire after receiving a call from ‘a concerned member of the public’ suggesting that someone in the UK had bought an Infiniti.

Rapid response units closed both sides of the six lane toll road at around 8:20 this morning following reports of ‘an unfamiliar saloon car’ on the northbound carriageway. The car was quickly stopped and surrounded by police armed with CAP Black Books.

‘I can confirm that a vehicle on the M6 toll road was approached by officers from our Rapid Depreciation Unit,’ said a spokesman for West Midlands police. ‘In a situation like this our first job is to isolate the scene and make sure no one does anything foolish, such as trying to go out and buy an Infiniti themselves.’

After examining the car and questioning the driver, the attending officers were satisfied that this was a false alarm. ‘In this case, the vehicle was a dealer demonstrator,’ the police spokesman confirmed. ‘But we must always be vigilant about the possibility of someone in Britain buying an Infiniti, however implausible that may seem.’

DATED: 06.07.12

FEED: Sniff

The publisher of vehicle sales title Auto Trader has announced the magazine will cease to be available in a print format within the next 12 to 18 months.

The new car market rose 3.5% to 189,514 units in June compared to June 2011, which itself was 2.5% ahead of average June volumes for the past three years, the Society of Motor Manufacturers and Traders (SMMT) reported today.

Q2 registrations rose by 4.8% compared to Q2 2011, and over the first half of the year have risen 2.7% to more than 1m units. The annual running total stood at 1.970,000 units in June and SMMT’s full-year 2012 forecast now stands at 1,950,000 units.

Private volumes rose 8.7% over the first half of the year, compared to H1 2011 and picked up in recent months, rising 9.8% in June over June 2011. Fleet volumes are on a par with last year, while business demand has fallen.

Alternatively-fuelled car registrations posted a 47.8% rise in June, compared to June 2011, while diesel volumes also rose, pushing their market share over the first half of the year up from 50% a year ago to 51.2%.

Improvements in new car fuel efficiency led to CO₂  emissions falling to 134.1g/km over the first half of 2012, down 4% on a year ago and 2.9% compared with 2011’s full-year figure of 138.1g/km.

New models helped Mini segment registrations rise 82.5% in June compared to June 2011. The dual purpose and executive segments also posted double digit-growth in the month. The Ford Fiesta was the best-selling model in June and over the first half of 2012.

SMMT chief executive Paul Everitt said: “Despite domestic and international economic concerns, UK motorists are responding positively to new products and the latest fuel-efficient technology. The industry has performed better than expected in the first half of the year and we will now need to work hard to sustain growth.”

DATED: 06.07.12

FEED: MF

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to increase the size of its asset purchase programme, financed by the issuance of centr ...

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank rate paid on commercial bank reserves at 0.5%.  The Committee also voted to increase the size of its asset purchase programme, financed by the issuance of central bank reserves, by £50 billion to a total of £375 billion.

UK output has barely grown for a year and a half and is estimated to have fallen in both of the past two quarters.  The pace of expansion in most of the United Kingdom’s main export markets also appears to have slowed.  Business indicators point to a continuation of that weakness in the near term, both at home and abroad.  In spite of the progress made at the latest European Council, concerns remain about the indebtedness and competitiveness of several euro-area economies, and that is weighing on confidence here.  The correspondingly weaker outlook for UK output growth means that the margin of economic slack is likely to be greater and more persistent.

CPI inflation fell to 2.8% in May and is likely to edge down further in the near term.  Commodity prices have fallen, which should help to moderate external price pressures.  And pay growth remains subdued. Given the continuing drag from economic slack, that should ensure inflation continues to ease into the medium term.

At its meeting today, the Committee agreed that the Funding for Lending Scheme, which would be launched shortly, was a welcome initiative.  It also noted recent and prospective actions to ease liquidity constraints within the banking system.  Taken together with reduced pressure on household real incomes, on the back of lower commodity prices, and the continued stimulus from past monetary policy actions, that should sustain a gradual strengthening of output growth.

But against the background of continuing tight credit conditions and fiscal consolidation, the increased drag from the heightened tensions within the euro area meant that, without additional monetary stimulus, it was more likely than not that inflation would undershoot the target in the medium term.  The Committee therefore voted to increase the size of its programme of asset purchases, financed by the issuance of central bank reserves, by £50 billion to a total of £375 billion.  The Committee also voted to maintain Bank Rate at 0.5%. The Committee expects the announced programme of asset purchases to take four months to complete.  The scale of the programme will be kept under review.

The minutes of the meeting will be published at 9.30am on Wednesday 18 July. 

DATED: 05.07.12

FEED: MI

Lookers, the UK’s fifth largest auto retail group by turnover, has made a major acquisition with the purchase of Lomond Motors which runs Audi dealerships and Volkswagen Group trade parts across central and southern Scotland.

The deal, which cost Lookers £15.0 million in cash, will give the group a significant share of Audi retail and fleet business. Until now its only Audi dealership was in Dublin.

Lookers chief executive, Peter Jones, said: “The acquisition is an important development in the group’s representation of the Audi brand and our relationship with the Volkswagen Group and we are very pleased to be representing the brands in such key locations.”

Lomond Motors is best known as the owner of Glasgow Audi, the UK’s first Audi brand centre, which opened in 2004 and was the largest Audi centre in the world at the time. The three-storey building is a landmark on the south side of the city and, alongside the usual dealership facilities, also houses a conference centre, café, art gallery and museum display.

DATED: 05.07.12

FEED: ARN

The agency said shareholder and political pressure was creating uncertainty about the bank's future.

The move comes a day after ex-Barclays chief executive Bob Diamond told MPs the rate fixing was "reprehensible".

One MP, however, called some of Mr Diamond's evidence "implausible".

MPs will vote later on whether to have a judge-led inquiry over the scandal, favoured by the opposition, or a parliamentary one, favoured by ministers.

Moody's said pressure on the bank could force it to move away from investment banking.

"Although this could have potentially positive implications over the longer term, the uncertainty surrounding such a change in direction is credit negative in the short term," the agency said.

It added that Barclays may find it difficult to replace Mr Diamond, chief operating officer Jerry del Missier, and chairman Marcus Agius, all of whom resigned this week. Mr Agius is staying on at the bank to oversee finding a replacement for Mr Diamond, but will step down once someone has been found.

DATED: 05.07.12

FEED: BBC

VW will pay 4.46bn euros ($5.6bn; £3.6bn) plus one VW common share to acquire the stake.

The two firms had agreed in 2009 to merge by the end of 2011, but have since faced legal obstacles.

The deal is likely to reduce costs and boost VW's earnings as it seeks to become the world's biggest carmaker.

"The accelerated integration will allow us to start implementing a joint strategy for Porsche's automotive business more quickly and to realize key joint projects more rapidly," said Hans Dieter Poetsch, chief financial officer of Volkswagen.

Both the firms had been seeking to accelerate the merger. However, one of the stumbling blocks for the deal was the likelihood of a big tax bill for both the firms.

Volkswagen had acquired a 49.9% stake in Porsche in 2009.

According to various reports, if it bought the remaining stake before 2014, the two companies may have had to pay more than 1bn euros in taxes, making the move less attractive.

Analysts said that by structuring the deal as one which involved the payment of one VW common share to Porsche, the firms may be able to avoid that bill.

They said that such a move means that the deal may see it being classified as a restructuring of the company rather than a takeover.

"It's a great deal for Volkswagen, both financially and in operative terms," said David Arnold, an analyst with Credit Suisse.

Meanwhile, Volkswagen said in a statement that "the accelerated integration model that has now been agreed can be implemented on economically feasible terms".

Once completed, the deal will bring an end to one of the most dramatic takeovers in the car manufacturing industry.

Porsche had been trying to takeover Volkswagen for many years.

Its attempt failed in 2009 as it fell short of acquiring the required 75% stake.

The global financial crisis and the slump in the global automotive sector made it difficult for the carmaker to raise enough money to buy the required stake.

But none the less, Porsche accumulated large amounts of debt in the process and was sued by investors who accused it of misleading them.

In a turnaround of events, the firms agreed a deal in 2009 under which Volkswagen agreed to takeover Porsche.

DATED: 05.07.12

FEED: BBC