Friday, January 30, 2015
Vauxhall announces new sales and marketing director
Vauxhall Motors has made Simon Oldfield its new sales and marketing director, as of March 1st 2015. Oldfield is a sales and marketing specialist and joins Vauxhall from Mercedes Benz, where he has held a number of senior positions in these disciplines. Previous roles have included brand and sales responsibilities at Hilton Hotels and BMW respectively.
‘Simon joins Vauxhall at an exciting period in the company’s history,’ said Tim Tozer, chairman and managing director of Vauxhall Motors. ‘New product introductions are creating significant sales opportunities for the Vauxhall business, with more to come this year in new Corsa, Viva and Astra and we are embarking upon a brand journey. Simon’s background and experience will bring new momentum and perspective to the business in the newly created role of sales and marketing director, a role pivotal to the success of Vauxhall’s future journey.’
DATED: 30.01.15
FEED: DU
Hyundai launches all-new Genesis executive saloon
Hyundai has launched a limited run of its all-new high-technology premium saloon; Genesis.
The new flagship model will be available to buy from April 2 exclusively through selected Hyundai dealerships nationwide and will be priced at £47,995.
The premium model promises to deliver on innovative technology, luxurious comfort, craftsmanship and premium style, with the brand claiming it’s the most refined and technologically advanced Hyundai ever made available in Europe.
It features a 3.8-litre V6 GDI engine delivers power to the rear wheels, working in conjunction with an eight-speed automatic transmission to ensure an effortlessly smooth and serene driving experience.
Advanced safety features include smart cruise control, automatic emergency braking, rear cross traffic alert, blind spot detection and the world’s first CO2 cabin sensor, which monitors the quality of the cabin environment and helps protect the driver from the dangers of drowsiness. A heads-up display also projects important information into the driver’s line of sight.
The model will be available to buy from East London Hyundai, Macklin Motors Edinburgh East, Bristol Street Motors Nottingham, Richmond Guildford, Johnsons Cars Coventry, Vantage Stockport and Dalys Garage Belfast, who will all be introducing bespoke Genesis retail display areas.
DATED: 30.01.15
FEED: AM
Jaama predicts increased demand for driver licence checking service with paper counterpart abolition
The abolition of the paper counterpart to the photocard driving licence on June 8, 2015 will lead to increased demand for driver licence checks, according to Jaama.
The DVLA is planning to introduce a free of charge online service for employers to check the validity of employees’ driving licences before the counterpart is abolished.
While exact details of the how the DVLA’s service will function have yet to be announced, it is understood that database access will be on an individual driver basis.
Jaama managing director Martin Evans believes the administrative burden that will cause employers will result in the company winning more driver licence checking business.
He said: “Organisations that already use Jaama for driver licence checking will continue to benefit from a hugely efficient service even when the DVLA launches its own offering.
“What’s more, the DVLA service will, we believe, prove to be administratively time consuming as each employees’ driver licence record will have to be accessed individually. With best practice determining that checks are carried out quarterly on employees with a large number of points on their licence, the whole process is likely to be a major burden for many employers.”
He also reminded employers that they have a duty of care responsibility to check the competency and capability of at-work drivers which starts with assessing validity of a driving licence on recruitment and periodically thereafter.
He said: “Employers should be putting in place licence checking measures now and not wait until the abolition of the paper counterpart to the photocard driving licence when they could find they do not have the internal resources available to effectively and efficiently manage the process providing them with a clear audit trail.”
DATED: 30.01.15
FEED: FN
SMMT: 2014 car registrations surpass 2m
The total number of cars registered in the UK has risen 9.5% year-to-year (YoY) reaching 2.14 million, according to The Society of Motor Manufacturers and Traders (SMMT).
This is the first time the market has passed two million car registrations in October since 2007.
Aside from 2013, this number is also more than the total amount of cars registered over the whole year of any year after 2007.
Aside from 2013, this number is also more than the total amount of cars registered over the whole year of any year after 2007.
October's registrations totalled 179,714 a YoY increase of 14.2%. This was higher than the amount recorded in the same month 2013, and the SMMT said the figure exceeded its expectations.
This was the fastest YoY growth for any month since March, when new car registrations leapt 18% year-on-year.
This was the fastest YoY growth for any month since March, when new car registrations leapt 18% year-on-year.
Mike Hawes, SMMT chief executive, said the SMMT still expects the overall market to level off as 2015 approaches. However, he said: "the exception to that rule will be alternatively-fuelled vehicles (AFVs), demand for which will continue to accelerate."
In October 2014, 4,692 AFVs were registered, compared to 2,952 in the same month 2013, an increase of 58.9%. As a result, the segment's total market share jumped from 1.9% to 2.6%, year-on-year.
Petrol cars also grew their market share for October thanks to a 15.9% YoY increase in registrations. As a result, 81,830 petrol cars were sold in October 2014, constituting 45.5% of the market.
The overall market share of petrol cars, however, fell YoY from 49.3% in 2013 to 48.1% to date. To put this in context, 1.03 million petrol cars were sold year to date in 2014 compared 961,609 in the same period 2013.
Diesel cars also lost market share, down from 53.2% in October 2013 to 51.9% in October 2014. This was the result of diesel car sales lagging behind the general market rate. A total of 93,192 diesel cars were registered in the month up 11.3% year-on-year.
By segment
Almost half (49.9%) of registrations were fleet based in October, which compared favourably to the 49.5% for October 2013. However year-to-date, fleet market share fell from 47.1% to 46.5%.
Almost half (49.9%) of registrations were fleet based in October, which compared favourably to the 49.5% for October 2013. However year-to-date, fleet market share fell from 47.1% to 46.5%.
The inverse was true for private cars, which saw market share fall from 45.3% in October 2013 to 45.0% in October 2014, but grow from 48.2% in the first 10 months of 2013 to 48.5% over the same period 2014.
Similarly, the market share of registrations for business fell from 5.2% to 5.0% YoY in October, but grew from 4.7% in the first ten months of 2013 to 5.0% in the same period for 2014.
By Model and Brand
Ford's remained the most popular brand in October, with sales growing from 21,325 in October 2013 to 24,221 in October 2014. Despite this, its market share fell slightly from 13.56% to 13.48% (YoY)
As usual, Ford's position in the market was helped by its Fiesta and Focus models which were the bestselling models in the month, with 9,157 and 7,116 registrations respectively.
Ford's remained the most popular brand in October, with sales growing from 21,325 in October 2013 to 24,221 in October 2014. Despite this, its market share fell slightly from 13.56% to 13.48% (YoY)
As usual, Ford's position in the market was helped by its Fiesta and Focus models which were the bestselling models in the month, with 9,157 and 7,116 registrations respectively.
Vauxhall also held onto its position as the second most popular car in October, with a market share of 10.58%, thanks to 19,005 sales. This was down almost one point from the 11.52% market share it had in the same month 2013. The Vauxhall Corsa was the third bestselling model of car, with 6,184 cars sold.
With three cars in the top ten bestselling models (The Golf, the Polo and the Astra), Volkswagen was the third most popular manufacturer in the UK in October 2014, with 15,495 cars sold. Its market share was 8.62% up 0.61 points(YoY)..
Thanks to 12,893 registrations, Audi was the fourth most popular manufacturer in October, with a 7.17% market share, up from 6.81% in October 2013.
The most impressive growth came from Nissan. Its sales leapt 42.99% YoY to 11,934 cars, making it the fifth biggest brand by volume in the month, overtaking Mercedes, which it was equal with in October 2013, and BMW in the process.
Other manufacturers to see impressive growth included Dacia, which saw sales grow 41.96% year-on-year to 2,047 and Volvo, which added 42.35% YoY to its registration total for the month, to 3,946.
While the majority of manufacturers grew sales, the good news was not universal. Honda's sales fell 16.84% YoYto 3,028, Land Rover sales fell 6.81% YoYto 3,695 and Peugeot sales dropped YoY 14.46% to 5,867.
Commenting on the SMMT figures, Chris Sutton, managing director of Black Horse, said: ""As we witness another month of positive car sales it's a question more of when will this good news story end? As we enter the final quarter of 2014 consumers will be anticipating new models in the New Year and may well be considering upgrading or part exchanging their current car so this continued growth trajectory may continue, but more than likely at a slower pace than we have previously seen."
Sutton added:"Alongside this we should see manufacturers and finance providers continuing to work hard to offer affordable and competitive finance options to consumers so all in all we should anticipate continued good performance till the end of the year and a promising start to next year."
DATED: 30.01.15
FEED: MF
Close Brothers Motor Finance rebrands
Close Motor Finance is to rebrand itself to Close Brothers Motor Finance, as of 1 November 2014.
As part of the rebrand the company will update its company logo, revise its marketing material and update its websites and systems to reflect the change in name.
The move is designed to align its name with parent company, merchant banking group Close Brothers.
James Broadhead, managing director of Close Brothers Motor Finance, said: "We are very proud of our heritage and the service we provide as an independent lender, but we also recognise the benefits of having the backing of a strong parent company and the rebrand reflects this."
DATED: 30.01.15
FEED: MF
As part of the rebrand the company will update its company logo, revise its marketing material and update its websites and systems to reflect the change in name.
The move is designed to align its name with parent company, merchant banking group Close Brothers.
James Broadhead, managing director of Close Brothers Motor Finance, said: "We are very proud of our heritage and the service we provide as an independent lender, but we also recognise the benefits of having the backing of a strong parent company and the rebrand reflects this."
DATED: 30.01.15
FEED: MF
Mazda profits continue to grow
Mazda Motor Corporations revenue for the half of its financial year 2014 (April to September) reached €10.5bn (£8.3bn), 16% above the same period 2013.
Operating profits for the period reached €748m, up 41% year-on-year, and net income was €671m, almost quadruple the figure recorded a year ago.
2013 saw Mazda record its highest profits in its 94 year history, and the manufacturer said it was on course to break that record this year.
The rise in revenue and profits were driven by a 6% global increase in vehicle sales. European sales were especially strong, at 21%, while North America and China grew 14% and 19% respectively.
Mazda said it expects to sell 1.42 vehicles globally for its financial year ending March 2015, which would be approximately 7% above its 2014 numbers.
2013 saw Mazda record its highest profits in its 94 year history, and the manufacturer said it was on course to break that record this year.
The rise in revenue and profits were driven by a 6% global increase in vehicle sales. European sales were especially strong, at 21%, while North America and China grew 14% and 19% respectively.
Mazda said it expects to sell 1.42 vehicles globally for its financial year ending March 2015, which would be approximately 7% above its 2014 numbers.
DATED: 30.01.15
DATED: MF
Warranty Group wants improved GAP transparency
Single source provider of warranty programs, The Warranty Group, has said improving pricing transparency would be the single biggest move the Financial Conduct Authority (FCA) could make to help customers make more informed choices over GAP insurance.
Ciaron Whelan, divisional director at the Warranty Group said that prices of GAP insurance should be made freely available in all marketing material including the distributor's website, rather than at the point of sale.
In August, an initial FCA report criticised selling practises of GAP insurance products, after it found the majority of consumers were unaware of how much they had paid for the product, and that 58% of consumers didn't even consider another policy when purchasing the add-on.
In order to remedy this, the FCA recommended a 'deferred opt-in' system, whereby there would be a break between purchase of the primary product and the add-o GAP to limit the point of sale advantage held by those selling add-on GAP. In addition, the customer would need to be informed that GAP insurance was available elsewhere.
However Whelan suggested this could prove ineffective: "The FCA's approach is based on the notion that competition will increase by restricting the sale of a policy at the point that a customer chooses to purchase a vehicle but there is no evidence to support this argument."
Instead he suggested adding the GAP price to all dealer marketing material so that customers could access the price before they entered into discussions with a dealer.
Whelan said; "The FCA's approach is based on the notion that competition will increase by restricting the sale of a policy at the point that a customer chooses to purchase a vehicle but there is no evidence to support this argument.
While he thought some dealers may stop offering point of sale insurance products under the current FCA proposals, Whelan suggested this wouldn't not be a major problem, as most dealers would stay due to the opportunity for profits, and the fact that GAP insurance is a genuinely useful product for customers.
Whelan said; "These dealers know that to achieve success, as with any insurance or warranty product, a structured approach is essential. It is a question of ensuring that GAP is introduced into the sales process at an appropriate time and is properly explained to the customer by a sales person who has been specifically trained to do so. In addition, there should be a fast, easy and effective administration process surrounding the policy."
The FCA's part said it will consult on its proposed remedies during early 2015.
DATED: 30.01.15
FEED: MF
Ciaron Whelan, divisional director at the Warranty Group said that prices of GAP insurance should be made freely available in all marketing material including the distributor's website, rather than at the point of sale.
In August, an initial FCA report criticised selling practises of GAP insurance products, after it found the majority of consumers were unaware of how much they had paid for the product, and that 58% of consumers didn't even consider another policy when purchasing the add-on.
In order to remedy this, the FCA recommended a 'deferred opt-in' system, whereby there would be a break between purchase of the primary product and the add-o GAP to limit the point of sale advantage held by those selling add-on GAP. In addition, the customer would need to be informed that GAP insurance was available elsewhere.
However Whelan suggested this could prove ineffective: "The FCA's approach is based on the notion that competition will increase by restricting the sale of a policy at the point that a customer chooses to purchase a vehicle but there is no evidence to support this argument."
Instead he suggested adding the GAP price to all dealer marketing material so that customers could access the price before they entered into discussions with a dealer.
Whelan said; "The FCA's approach is based on the notion that competition will increase by restricting the sale of a policy at the point that a customer chooses to purchase a vehicle but there is no evidence to support this argument.
While he thought some dealers may stop offering point of sale insurance products under the current FCA proposals, Whelan suggested this wouldn't not be a major problem, as most dealers would stay due to the opportunity for profits, and the fact that GAP insurance is a genuinely useful product for customers.
Whelan said; "These dealers know that to achieve success, as with any insurance or warranty product, a structured approach is essential. It is a question of ensuring that GAP is introduced into the sales process at an appropriate time and is properly explained to the customer by a sales person who has been specifically trained to do so. In addition, there should be a fast, easy and effective administration process surrounding the policy."
The FCA's part said it will consult on its proposed remedies during early 2015.
DATED: 30.01.15
FEED: MF
Grant Thornton expands automotive team
Accounting firm Grant Thornton UK has added Richard Parkin to its automotive advisory practise.
Before joining Grant Thornton, Parkin was head of valuations at finance information provider, Glass's Information Services, a position he had held since October 2012. In this time he was a regular commentator for Motor Finance, including a blog on GAP insurance.
Before working at Glass's, Parkin spent over 10 years as a strategy consultant, principally working with automotive and related segment clients.
He said: "It was a great fit: Grant Thornton was able to provide me with the opportunity to focus on consulting work and, with their existing expertise, allow me to serve clients in a wider capacity."
Tarun Mistry, Grant Thornton's Automotive Advisory partner, said: "His [Parkin] specific expertise in vehicle residual values will be very relevant with regards to the various transactional advisory work we deliver. He also brings consulting skills to further strengthen our offering and this is aligned to where we are seeing growing market demands. A strengthened team composed of a core group of individuals with real sector knowledge is in line with our strategy and reflects the continued focus of Grant Thornton in this sector."
DATED: 30.01.15
FEED: MF
Before joining Grant Thornton, Parkin was head of valuations at finance information provider, Glass's Information Services, a position he had held since October 2012. In this time he was a regular commentator for Motor Finance, including a blog on GAP insurance.
Before working at Glass's, Parkin spent over 10 years as a strategy consultant, principally working with automotive and related segment clients.
He said: "It was a great fit: Grant Thornton was able to provide me with the opportunity to focus on consulting work and, with their existing expertise, allow me to serve clients in a wider capacity."
Tarun Mistry, Grant Thornton's Automotive Advisory partner, said: "His [Parkin] specific expertise in vehicle residual values will be very relevant with regards to the various transactional advisory work we deliver. He also brings consulting skills to further strengthen our offering and this is aligned to where we are seeing growing market demands. A strengthened team composed of a core group of individuals with real sector knowledge is in line with our strategy and reflects the continued focus of Grant Thornton in this sector."
DATED: 30.01.15
FEED: MF
Auto Trader: Dealer size is growing
There were 1,773 dealers with forecourts with over 50 cars in September 2014, compared to 1,367 in September 2013 - a year-on-year rise of almost 30% according to Auto Trader.
Over the same period, the number of dealers with fewer than 21 cars declined from 5,739 to 5,088 - or nearly 13%.
Nick King, research director at Auto Trader, said: "It's a trend that we think is driven in part by an uptake in digital marketing and forecourt management tools.
"Greater use of intelligence and insight to drive their business forwards means dealerships can increase scale, without increasing either physical presence or headcount."
Auto Trader added that the number of cars listed on its site grew 14% year-on-year in September, to 443,548.
DATED: 30.01.15
FEED: MF
HPI launches new risk evaluation tool
Motoring technology company HPI has launched a new data tool called React.
The tool allows finance companies, including captive finance houses, to track assets and monitor changes in interest.
According to HPI, React was designed to enable finance houses to manage notifications in a timely manner, and to minimise clearance calls and mitigate any risk of data not being recorded accurately.
Included within React are data quality reports, multiple report alerts, risk ratings and notifications of exported or scrapped assets.
HPI gave six customer finance houses the opportunity to use React free of charge for a trial period, in order to pilot its capabilities.
Although it is currently just for finance houses, HPI said it plans to open up a modified version for use by auction houses and dealer networks in the near future.
Neil Hodson, managing director of HPI said: "We understand the challenges facing finance houses and React helps them tackle those challenges head on."
DATED: 30.01.15
FEED: MF
The tool allows finance companies, including captive finance houses, to track assets and monitor changes in interest.
According to HPI, React was designed to enable finance houses to manage notifications in a timely manner, and to minimise clearance calls and mitigate any risk of data not being recorded accurately.
Included within React are data quality reports, multiple report alerts, risk ratings and notifications of exported or scrapped assets.
HPI gave six customer finance houses the opportunity to use React free of charge for a trial period, in order to pilot its capabilities.
Although it is currently just for finance houses, HPI said it plans to open up a modified version for use by auction houses and dealer networks in the near future.
Neil Hodson, managing director of HPI said: "We understand the challenges facing finance houses and React helps them tackle those challenges head on."
DATED: 30.01.15
FEED: MF
SMMT elects 2015 Board
Gareth Jones, managing director of German owned ebm-papst Automotive and drives UK, has been elected to president of the Society of Motor Manufacturers and Traders (SMMT).
Jones has worked at ebm-papst for over 26 years, operating in the manufacturing supply chains of industries including automotive, telecommunications, rail, consumer electronics, white goods and retail.
He said: "I'm very proud to accept this role and look forward to working with the entire SMMT team and my industry colleagues to promote the best interests of the automotive industry."
Jones will take up the role on 1 January, when current president Tim Abbot's two year terms comes to an end. Abbot will become deputy president of the SMMT, a position he will hold alongside his role at BMW in South Africa.
The SMMT also elected Penny Randall, marketing director of Renault Trucks UK, Tony Walker, deputy managing director of Toyota Motor Manufacturing (UK) and James Wright, managing director of Nissan Motor (GB) to the roles of vice president.
DATED: 30.01.15
FEED: MF
Auto Trader switches CAP for Glass’s
Vehicle valuation firm Glass's is to provide motor marketplace Auto Trader with a range of data after the two companies signed a ten year partnership.
It means the systems that underpin the Auto Trader website and affiliated websites, will be now powered by Glass's , instead of CAP.
A spokesperson for Auto Trader told Motor Finance the company was planning on expanding the depth and breadth of search options for customers beyond traditional methods such as searching by brand or age and that Glass's data options were seen as the best fit for these plans.
Previously, CAP had provided Auto Trader with the bulk of its vehicle information.
However, following Auto Trader's partnership with Glass's Cap will instead provide a number of products outside of vehicle data services, though Auto Trader declined to comment what those services would be.
Explaining the decision to switch from CAP to Glass's, Trevor Mather, managing director of Auto Trader, said: "Both CAP and Glass's are excellent providers of vehicle data, but slightly different. After careful evaluation we believe that Glass's is a better long term partner for Auto Trader providing a deeper level of data that will unlock new opportunities to the benefit of both consumers and automotive retailers. I believe that some of the most interesting opportunities lie within new search functionality and new valuation services to empower consumers and help retailers."
DATED: 30.01.15
FEED: MF
Hitachi’s UK broker scheme sees first registrants receive FCA permissions
The first set of UK regulatory permissions have been granted to UK brokers working through Hitachi Capital Business Finance's regulatory training scheme.
Hitachi said in a statement it had been working with around 200 introducers with 14 sessions to date, with the first few brokers receiving permissions from the Financial Conduct Authority (FCA) at the start of December.
The first two brokers to receive full FCA permission were Anglo Scottish and George Rudnick of Direct Asset Capital, with RCD Finance and Clockwork Capital in the process of obtaining permissions.
A brief version of the checklist provided to Leasing Life demonstrated the requirements that the regulatory regime is demanding of brokers operating in the consumer asset finance space:
Hitachi said in a statement it had been working with around 200 introducers with 14 sessions to date, with the first few brokers receiving permissions from the Financial Conduct Authority (FCA) at the start of December.
The first two brokers to receive full FCA permission were Anglo Scottish and George Rudnick of Direct Asset Capital, with RCD Finance and Clockwork Capital in the process of obtaining permissions.
A brief version of the checklist provided to Leasing Life demonstrated the requirements that the regulatory regime is demanding of brokers operating in the consumer asset finance space:
- "Know your customer' check completed
- The customer has been provided with a privacy notice
- If refinancing existing equipment, the sustainability of the finance has been reviewed
- The nature of the services that the firm provides has been explained
- If the customer has been introduced to the firm, reasonable steps taken to ensure introduction met regulatory requirements
- Any fees payable by the customer to the broker have been notified
- The product's sustainability has been reviewed
- Made clear equipment can also be bought with cash
- A search of the market to the extent stated has been carried out
- Information on complaints procedure made available
Gavin Wraith-Carter, general manager at Hitachi Capital Business Finance, said: "The feedback received to date suggests that this type of service is both informative and essential to help brokers navigate the complexities of FCA compliance requirements.
"Our support is ongoing and we have produced the comprehensive checklist and shared it with the NACFB, FLA and other funders in the hope that it becomes standard practice for brokers to refer to when arranging finance with their customers.
"Our support is ongoing and we have produced the comprehensive checklist and shared it with the NACFB, FLA and other funders in the hope that it becomes standard practice for brokers to refer to when arranging finance with their customers.
DATED: 30.01.15
FEED: MF
SMA Vehicle Remarketing partners NextGear Capital
SMA Vehicle Remarketing is to offer its customers online payments and access to NextGear Capital's StockMaster system after the two companies signed a partnership agreement.
As part of the agreement, existing SMA buyers who also hold a NextGear Capital Stocking plan will be able to use it to purchase vehicles from 1 December 2014.
SMA is the first UK auction house to offer access to StockMaster, which helps dealers to view the status of their stocking plan, including vehicles pending auction.
Bob Anderson, managing director of SMA said: "Working with NextGear Capital we are the first remarketing business that will enable our customers to access a Stocking Plan that can enhance their auction experience in an entirely new way."
DATED: 30.01.15
FEED: MF
As part of the agreement, existing SMA buyers who also hold a NextGear Capital Stocking plan will be able to use it to purchase vehicles from 1 December 2014.
SMA is the first UK auction house to offer access to StockMaster, which helps dealers to view the status of their stocking plan, including vehicles pending auction.
Bob Anderson, managing director of SMA said: "Working with NextGear Capital we are the first remarketing business that will enable our customers to access a Stocking Plan that can enhance their auction experience in an entirely new way."
DATED: 30.01.15
FEED: MF
Fleet Friday: Man alive it’s Friday
Gala's knock at the door for Fleet Alliance
Bingo hall company Gala Leisure has reappointed Fleet Alliance to provide the fleet management for its 200 strong fleet of cars.
Gala first appointing Fleet Alliance in 2010, and after looking at potential alternative providers, chose to renew with the fleet management provider until 2017, with a further two year renewal option.
Fleet Alliance will be responsible for managing the existing fleet and sourcing all new vehicles using a competitive tendering approach for each new car added to the fleet, via a panel of three different funders, to identify the most cost efficient.
Fleet Alliance will also handle all discount negotiations with vehicle manufacturers and with leasing providers over contract miles, to ensure the fleet is run as cost effectively as possible.
Alphabet launches LCV approved partner network
Fleet provider Alphabet has launched an LCV approved partner network in the UK, which initially consists of 12 suppliers.
Tony Long, network development manager has been named head of the network, which encompasses seven core categories: internal van provision, construction body and dry freight, minibus and wheelchair accessible vehicles, welfare vehicles, refrigerated vehicles, livery and media.
Matt Sutherland, chief operating officer of Alphabet, said the launch of the network was the 'first step' in developing Alphabet's LCV business over the next two years.
He said: "We selected a range of highly experienced and dedicated LCV conversion suppliers, and have been able to provide them with the tools and support needed to enhance our LCV offering. All suppliers have an implementation plan which we will
be working through together over the coming months, with this in mind we are expecting big things for 2015," Sutherland concludes.
Fleet Logistics opens in Israel
Independent fleet management provider Fleet Logistics has expanded its operations to Israel in conjunction with local partner, automotive consultancy NG Group.
The move was in response to requests by several of Fleet Logistics international clients with operations and trading subsidiaries in Israel, the company said.
The initial development has been led by business development manager Simon Spremberg, who has begun training local staff, implementing the first customers onto Fleet Logistics' systems and set up relationships with leasing companies.
Senior appointment for ARI
UK fleet management company ARI has recruited Ashley Jones to the company as a specialist manager.
In this new role, Jones will lead the company's accident and risk team, and manage ARI's road safety management programme, Riskmaster.
Jones has over 25 years experience in the automotive industry, and was previously business development manager at Total Accident Management.
Chevin disputes manufacturer CO2 figures
Fleet software provider Chevin has said fleets should stop using manufacturer CO2 figures in calculating their carbon footprint after pressure group Transport and Environment found these figures could represent a 31% under-report.
Ashley Sowerby, managing director at Chevin, said: "We are reaching a situation where manufacturer 'official' CO2 figures are really being robbed of their credibility, certainly in terms of absolute accuracy.
"Fleets that are serious about calculating their carbon footprint in a meaningful sense need to find new ways of measuring their output. This is an important area of company vehicle activity and we should all be striving for precision."
DATED: 30.01.15
FEED: MF
Bingo hall company Gala Leisure has reappointed Fleet Alliance to provide the fleet management for its 200 strong fleet of cars.
Gala first appointing Fleet Alliance in 2010, and after looking at potential alternative providers, chose to renew with the fleet management provider until 2017, with a further two year renewal option.
Fleet Alliance will be responsible for managing the existing fleet and sourcing all new vehicles using a competitive tendering approach for each new car added to the fleet, via a panel of three different funders, to identify the most cost efficient.
Fleet Alliance will also handle all discount negotiations with vehicle manufacturers and with leasing providers over contract miles, to ensure the fleet is run as cost effectively as possible.
Alphabet launches LCV approved partner network
Fleet provider Alphabet has launched an LCV approved partner network in the UK, which initially consists of 12 suppliers.
Tony Long, network development manager has been named head of the network, which encompasses seven core categories: internal van provision, construction body and dry freight, minibus and wheelchair accessible vehicles, welfare vehicles, refrigerated vehicles, livery and media.
Matt Sutherland, chief operating officer of Alphabet, said the launch of the network was the 'first step' in developing Alphabet's LCV business over the next two years.
He said: "We selected a range of highly experienced and dedicated LCV conversion suppliers, and have been able to provide them with the tools and support needed to enhance our LCV offering. All suppliers have an implementation plan which we will
be working through together over the coming months, with this in mind we are expecting big things for 2015," Sutherland concludes.
Fleet Logistics opens in Israel
Independent fleet management provider Fleet Logistics has expanded its operations to Israel in conjunction with local partner, automotive consultancy NG Group.
The move was in response to requests by several of Fleet Logistics international clients with operations and trading subsidiaries in Israel, the company said.
The initial development has been led by business development manager Simon Spremberg, who has begun training local staff, implementing the first customers onto Fleet Logistics' systems and set up relationships with leasing companies.
Senior appointment for ARI
UK fleet management company ARI has recruited Ashley Jones to the company as a specialist manager.
In this new role, Jones will lead the company's accident and risk team, and manage ARI's road safety management programme, Riskmaster.
Jones has over 25 years experience in the automotive industry, and was previously business development manager at Total Accident Management.
Chevin disputes manufacturer CO2 figures
Fleet software provider Chevin has said fleets should stop using manufacturer CO2 figures in calculating their carbon footprint after pressure group Transport and Environment found these figures could represent a 31% under-report.
Ashley Sowerby, managing director at Chevin, said: "We are reaching a situation where manufacturer 'official' CO2 figures are really being robbed of their credibility, certainly in terms of absolute accuracy.
"Fleets that are serious about calculating their carbon footprint in a meaningful sense need to find new ways of measuring their output. This is an important area of company vehicle activity and we should all be striving for precision."
DATED: 30.01.15
FEED: MF
FCA announces opt-in proposal for GAP products
The Financial Conduct Authority (FCA) has issued its long awaited proposals for the future sale of GAP products by car dealers and has confirmed its intention to implement a four day deferred opt-in on all policies.
Earlier this year the regulator promised a shake-up in the way GAP is sold by limiting what it judged to be the point of sale advantage enjoyed by dealers and making it easier for consumers to shop around.
The FCA’s key proposals are:
- a deferred opt-in or pause in the sale. A salesperson can start the sales process but cannot conclude the sale for a set time period, giving customers time to consider whether they need the product at all and to shop around if they do;
- a requirement for add-on GAP distributors to provide information that will encourage consumers to shop around, including by advising them that they can purchase the product elsewhere.
The FCA said add-on GAP insurance claims ratios from 2008 to 2012 averaged 10%, with only £10 in every £100 paid in premiums being paid out in claims. It also said GAP add-on sales account for an estimated annual overpayment of £76m for every £108m paid in premiums.
“These factors indicate that people are buying products that offer poor value for money,” said the FCA.
An industry insider, close to the consultation process, said the GAP proposals are less onerous than expected for franchised dealers, although car supermarkets may find the four day deferred opt-in a challenge.
“With a four day cooling off period franchised dealers will be able to build it into their handover process as very few cars are bought and driven away on the same day. It then gives them the opportunity to once again go through the fine detail on GAP when the customer picks up their car. This, in turn, will help them prove their compliance . However, it may be an issue for some of the large car supermarkets who operate on a sell and go basis.”
The FCA is asking for feedback on its proposals by 13 March 2015 and intends to implement the new rules in September 2015.
Click here for the full FCA statement.
DATED: 30.01.15
FEED: MT
FOS cases fall as PPI scandal subsides
The Financial Ombudsman Service (FOS) received 246, 404 new cases between April and December 2014 - a drop of 39.5% year-on-year.
The majority of the drop came from a fall in PPI enquiries, which previously accounted for over half of all enquires. According to a FOS spokesperson, the service was seeing 12,000 new cases a week at the height of the PPI scandal, however that number has now fallen to approximately 4,000 cases a week.
The Ombudsman was required to give a ruling on 32,402 cases, and upheld the consumer complaint in just over half (53%) of these instance.
Despite these drops, the number of FOS rulings for the full financial year is likely to remain flat. For the twelve month period to April 2014 (its 2013/2014 year), the FOS made 38,397 rulings. In comparison, it has already made 32,402 in the first three quarters of its 2014/2015 year.
In total, the FOS received 455,058 general enquiries between April and December 2014.
By sector
While motor finance is covered by the FOS, its statistics are dispersed among a number of other sectors, including hire purchase and hiring/leasing/renting.
Between April 2014 and December 2014, there were 3,454 hire purchase related enquiries, of which 1,271 became cases. Eventually the FOS provided a ruling on 291 cases, and upheld 39% of the complaints. These figures include hire purchases which were not motor finance related, however.
In the same period, there were 621 enquiries related to hiring/leasing/renting, of which 223 became cases and 47 required a ruling. In these cases, 33% of customer complaints were upheld.
DATED: 30.01.15
FEED: MF
TFS makes motor finance play
Guarantor lender TFS has begun targeting customers wishing to borrow money for a car, but with credit ratings too poor for traditional motor finance companies.
The funder has been lending for approximately seven years, and mostly operates through intermediaries, such as brokers and affiliates.
Ray Bohringer, head of sales at TFS, told Motor Finance the lender was already seeing a number of requests for car finance before it moved into the sector.
He said: "If I'm honest we don't know if that is the case every time, or if it just makes a good story. We will lend for most legal purposes, providing the applicant is ok in regards to affordability and the guarantor meets our requirements. It's not really an issue, and we don't make any point about what we will and won't lend for. All applicants and guarantors must meet FCA guidelines on affordability etc"
In order to move into motor finance, TFS researched the market and found that its loan sizes were too low. Bohringer said: "We pushed our maximum loan size to £12k because we think the sweet spot in this market is probably £7-7.5k. We want to make sure that we can accommodate larger loans. To be honest we like the larger loans, that said we will lend as low as £1,000"
TFS will be targeting customers who have been turned down by other lenders due to a poor credit rating, as the guarantor method allows the lender to concentrate on affordability and care less about the customer's credit history due to the guarantor.
Increasing guarantor presence
TFS is the second guarantor lender to move into the motor finance area in recent months, after year old guarantor lender George Banco made a similar announcement in December 2014.
Bohringer told Motor Finance a part of the reason for these moves was the quantity of guarantor lenders out there. He said: "There are a lot of new lenders cropping up at the moment and as a result prices are being pushed down, which is a good thing for the consumer.
"It's also pushing the boundaries of the product. I don't know how far that will go, purely and simply because until you've got a seasoned book, you can't really judge the quality."
According to Bohringer, a lot of these lenders are fairly small in size, with maximum monthly lends of under £100,000, however some are larger in size. He said: "there are other lenders in the industry that I can think of that will have the financial backing, and I'm sure it's a market they will look to explore."
While an increasingly competitive guarantor market has driven down rates in the sector, Bohringer said he doesn't feel an increased motor presence will threaten the traditional subprime finance players, such as Billing or MoneyBarn, for the simple fact that most applicants would prefer to deal in their own name against a car, rather than seek out a guarantor.
DATED: 30.01.15
FEED: MF
The funder has been lending for approximately seven years, and mostly operates through intermediaries, such as brokers and affiliates.
Ray Bohringer, head of sales at TFS, told Motor Finance the lender was already seeing a number of requests for car finance before it moved into the sector.
He said: "If I'm honest we don't know if that is the case every time, or if it just makes a good story. We will lend for most legal purposes, providing the applicant is ok in regards to affordability and the guarantor meets our requirements. It's not really an issue, and we don't make any point about what we will and won't lend for. All applicants and guarantors must meet FCA guidelines on affordability etc"
In order to move into motor finance, TFS researched the market and found that its loan sizes were too low. Bohringer said: "We pushed our maximum loan size to £12k because we think the sweet spot in this market is probably £7-7.5k. We want to make sure that we can accommodate larger loans. To be honest we like the larger loans, that said we will lend as low as £1,000"
TFS will be targeting customers who have been turned down by other lenders due to a poor credit rating, as the guarantor method allows the lender to concentrate on affordability and care less about the customer's credit history due to the guarantor.
Increasing guarantor presence
TFS is the second guarantor lender to move into the motor finance area in recent months, after year old guarantor lender George Banco made a similar announcement in December 2014.
Bohringer told Motor Finance a part of the reason for these moves was the quantity of guarantor lenders out there. He said: "There are a lot of new lenders cropping up at the moment and as a result prices are being pushed down, which is a good thing for the consumer.
"It's also pushing the boundaries of the product. I don't know how far that will go, purely and simply because until you've got a seasoned book, you can't really judge the quality."
According to Bohringer, a lot of these lenders are fairly small in size, with maximum monthly lends of under £100,000, however some are larger in size. He said: "there are other lenders in the industry that I can think of that will have the financial backing, and I'm sure it's a market they will look to explore."
While an increasingly competitive guarantor market has driven down rates in the sector, Bohringer said he doesn't feel an increased motor presence will threaten the traditional subprime finance players, such as Billing or MoneyBarn, for the simple fact that most applicants would prefer to deal in their own name against a car, rather than seek out a guarantor.
DATED: 30.01.15
FEED: MF
Former Glass’s MD becomes fleet director for VWFS
Volkswagen Financial Services UK (VWFS) has hired Ian Tilbrook as its interim fleet director.
Tilbrook previously worked at Glass's, where he was managing director. Before this he has also worked as managing director of ING Car Lease, integration director at Alphabet and sales director of Lease Plan UK.
According to a company from the statement, the appointment marks the beginning of a 'significant programme to reshape and evolve' VWFS's fleet business.
Graham Wheeler, managing director of VWFS welcomed Tilbrook to the role, and said VWFS has ambitious plans in the fleet sector in the future.
In 2014, VWFS developed its fleet portfolio to just below 10,000 vehicles in what the company described as a 'record year'.
DATED: 30.01.15
FEED: MF
Black Horse: Consumers don’t see significant change in car-buying process
More than half of UK consumers (55%) do not believe that the car buying process has changed significantly in the past three years, despite the increasing use of the internet, a survey by Blackhorse and YouGov has revealed.
The survey involved 2305 consumers who purchased a car in the 12 month period to October 2014. Of these, just 10% agreed there had been a change and 23% that there had been a slight change. The remaining customers answered that they weren't sure or did not respond.
From the people who had seen a difference, 73% recognised that there was a greater use of online tools and nearly half (47%) identified an increase in the number of places to buy a car from. In addition six out of ten car buyers (62%) thought the process had become easier.
Another conclusion drawn from the research was that the majority of prospective car buyers did not think the process had become easier: only 47% believed it did.
Chris Sutton, managing director of Black Horse, said: "It is surprising to see that the majority of consumers do not think that the car buying process has changed over the last three years. Clearly though for those that do feel that there has been a change the single biggest difference has been the use of the internet and other internet tools, which many have found made the overall process easier.
"Certainly the internet has provided consumers with more choice as to where they decide to gain their initial information from and indeed prepare them with more guidance before they step into a car showroom, giving the consumer more choice and confidence as to the decisions that they make."
Dealerships
The research found that dealerships were still the preferred option for car buyers with six out of ten (60 per cent) using this route when they last bought a car. The remaining customers used a ranged of other outlets such as private sellers, second hand dealerships and family members.
Dealerships therefore still play a vital role in the car buying process with over half (57 per cent) of car buyers visiting a dealership within a month of deciding to buy a car and one in five (19 per cent) deciding to buy a car after visiting a dealership.
Consumers also found the overall car buying process a positive experience, and over three-quarters (78 per cent) of buyers said they would recommend visiting a dealership when purchasing a car.
"Car dealerships clearly still fulfil an integral role in the car buying process with most consumers preferring the security of using a dealership and all the other benefits that a dealership can offer in terms of knowledge, variety of cars and competitively priced cars and finance," Sutton said.
Blackhorse's Managing Director also emphasized that dealers have to ensure that they are aware of all the finance options available to buyers. He also pointed out that the change of regulator to the Financial Conduct Authority has been challenging for the industry.
Sutton said: "The new framework has been far reaching and has had a significant impact for both lenders and dealers requiring even better and more transparent dealings with consumers in order to provide better consumer outcomes.
"Whilst there have been many hurdles for the industry as a whole to engage with and implement the FCA rules and guidance, dealers are gradually gaining a better understanding of how to put the rules and guidance into practice. We do see the changes as providing even more trust and transparency to consumers which can only be viewed as a good thing for the industry overall."
DATED: 30.01.15
FEED: MF
Alphabet broker programme delivers 1,000 vehicles
BMW's fleet arm Alphabet has delivered over 1,000 vehicles through its broker programme, Alphabet Partner (AP).
Of the 1,000, less than 5% (49) were electric vehicle, and just under 10% (90) were light commercial vehicles.
Alphabet's broker channel was launched at the end of September 2014, and currently involves 34 brokers. These brokers are able to offer contract hire, finance lease, contract purchase, PCP and personal contract hire funding products.
Gavin Davies, head of indirect sales oversees the operation. He said: "Being a newcomer in a well-established marketplace can present its challenges, however, we've demonstrated that we are a credible and reputable entrant, who should be taken seriously".
"This is only the start of things to come. This was never a short-term initiative for us; we've entered into a three year agreement with our brokers and can only expect the volume of deliveries to continue to grow as the channel matures."
DATED: 30.01.15
FEED: MF
Fleet Alliance reports record revenue and profits in 2014
Fleet Alliance saw its revenue and profitability climb to record levels in 2014, while its fleet size was the largest since launch.
This was the fourth successive record year in terms of these variables.
The vehicle funding and fleet management company reported an increase of 58% in operational profit and 36% in revenue, compared to 2013.
By the end of last year, Fleet Alliance had a record fleet size of 18,209 vehicles under management on behalf of business customers. According to the company, there was a rise in customers from both the SME and mid-corporate sectors of the market.
Fleet Alliance managing director, Martin Brown said: "Our continued growth has come from both the SME sector where more small companies have been encouraged to invest and expand, and from the mid-sized corporate sector where we have seen a string of new business wins.
"We are forecasting another strong year again this year based on a variety of positive economic indicators, including record-low interest rates and inflation and a very strong air of business confidence."
DATED: 30.01.15
FEED: MF
