Wednesday, March 18, 2015
BNP Paribas warns SMEs over UK tax breaks changes
With the UK's annual investment allowance (AIA) expected to drop from £500,000 (€701,243) to £25,000 on 1st of January 2016, BNP Paribas Leasing Solutions urged SMEs to plan major investments in machinery and equipment before the tax relief cut.
AIA introduced in April 2008, allows most businesses -regardless of their size - to claim tax relief on capital investments.
BNP Paribas said that businesses need to place major orders for investments in capital equipment by the summer, as eligibility for the current Annual Investment Allowance (AIA) of £500,000 will depend on equipment being on site and ready for use by 31 December.
The lessor pointed out that businesses that want to take full advantage of the current tax benefits available for major capital investments and still keep cash flow healthy can choose leasing rather than outright purchase.
They will be able to claim the AIA for investments as long as the item is in use on their premises by the end of December, and will not need to have made all the payments by that date.
"Major capital investments such as a complete IT hardware and systems refit, a combine harvester for a farm, or large-scale excavation equipment for a construction business cannot just be bought off the shelf, and will easily exceed the £25,000 limit that the AIA is expected to fall to," said Tristan Watkins, UK country manager for BNP Paribas Leasing Solutions.
Annual Investment Allowance
BNP Paribas alongside other companies and organisations, like the British Chambers of Commerce (BCC) have called on the Government to use the forthcoming budget to keep the allowance at £500,000.
Watkins said: "Even a couple of years ago businesses were clearly using the AIA to help fund major investments, not just day-to-day capital spending - which is why its use fell so sharply when the limit was cut."
"Now that the economic recovery is taking root and business confidence is returning, we would expect an even larger number of businesses to be looking to the AIA to transform their prospects."
"The AIA has proved its worth in encouraging business investment. Using the forthcoming budget to keep it at its more generous level indefinitely could be transformative for many businesses and indeed for the UK economy. It would ensure that businesses can make the investments they need, at the time that makes most sense for their business."
The lessor highlighted that after the last reduction of AIA in 2012/13 saw a £1.5bn fall in amount of tax relief claimed on capital spending.
AIA was cut by 75% from £100,000 to £25,000 for the 2012/13 tax year. In January 2013, the Government temporarily increased the limit from £25,000 to £250,000. A second temporary rise followed in April 2014, when the limit was raised to its current level.
DATED: 18.03.15
FEED: LL
Secure Trust Bank launches asset finance division
Secure Trust Bank plc (Secure Trust), has launched its asset finance arm as part of its business and commercial services.
Its asset finance arm will provide SMEs with a way to buy and refinance physical assets, including plant equipment, commercial vehicles and machinery, iincluding hire purchase, lease finance and refinancing.
Secure Trust has also appointed Haydock Finance as its authorised representative for hire purchase and lease solutions.
Steve Worrall, Managing Director at Haydock Finance, said: "While the partnership is mutually beneficial, it is completely unique in our industry and provides Secure Trust with proven systems and resource so that it can quickly establish a presence in the market. This will allow both companies to compete with stronger balance sheets and higher value assets, and we are very much looking forward to working together."
Its asset finance arm will provide SMEs with a way to buy and refinance physical assets, including plant equipment, commercial vehicles and machinery, iincluding hire purchase, lease finance and refinancing.
Secure Trust has also appointed Haydock Finance as its authorised representative for hire purchase and lease solutions.
Steve Worrall, Managing Director at Haydock Finance, said: "While the partnership is mutually beneficial, it is completely unique in our industry and provides Secure Trust with proven systems and resource so that it can quickly establish a presence in the market. This will allow both companies to compete with stronger balance sheets and higher value assets, and we are very much looking forward to working together."
In September Secure Trust launched its commercial finance business for small and medium enterprises (SMEs) in the UK, headed by John Bevan.
Paul Marston, managing director of Business and Commercial at Secure Trust Bank, said: "Our Business and Commercial division is now able to offer SMEs a full suite of solutions to achieve the funding their business needs to grow.
"The appointment of Haydock Finance as our authorised representative further strengthens our asset finance offering, and will be central in assisting us in building the business during the coming months."
Paul Marston, managing director of Business and Commercial at Secure Trust Bank, said: "Our Business and Commercial division is now able to offer SMEs a full suite of solutions to achieve the funding their business needs to grow.
"The appointment of Haydock Finance as our authorised representative further strengthens our asset finance offering, and will be central in assisting us in building the business during the coming months."
DATED: 18.03.15
FEED: LL
Dealers urged to put used finance offers online
Dealers need to have their used car finance online in order to boost business levels.
That’s the view of MotoNovo Finance, which said dealer websites also inform and educate prospective customers about dealer finance.
“Dealers need to develop their on-line finance process capabilities to enable customers to self-propose their own finance,” it said.
The proposals sprang from research carried out by the company into used car buyers.
“The research clearly reveals that consumers do look online for their finance before purchasing their car.
“Without a clear transparent finance offer that provides detail on rates and products, consumers invariably default to a source that does provide this information. Most commonly, this is at on-line price comparison sites,” said MotoNovo head of sales and marketing Karl Werner.
“Sadly, customers are often making buying decisions on limited information. Classically, this is driven by rate and the age old perception that by paying cash they get a better deal.
“Unfortunately, they may never discover the potential for a PCP on a used car, the convenience and high accept rates that typically are associated with dealer finance because this information is simply not on-line, or is not clearly accessible on-line,” he added.
Werner noted the growing popularity of online finance calculators.
DATED: 18.03.15
FEED: MT
Nissan appoints Autorola to sell unwanted part-ex cars
The Autofind portal enables Nissan dealers to load their used stock online for other dealers to view and buy, while putting their vehicles in the shop window with 2,000 other active trade buyers who regularly use the system.
Dealers sign up to the Autorola service and can immediately buy or sell vehicles on the Autofind online portal, which currently has 13,000 used cars and vans for sale.
“We know our network of used buyers like having used Nissans on their forecourt, in particular the Qashqai.
“The early reaction from Nissan dealers to buying and selling online has been very positive,” said Jon Mitchell, Autorola UK’s sales director.
Giles Rayner, manager, used car business centre at Nissan Motor (GB), said: “Our new car sales have continued to grow over the past few years which has steadily fed more used vehicles into our network.
“Our partnership with Autorola will help reduce stocking days, lower the average used car age across the network and ultimately increase residuals,” he added.
DATED: 18.03.15
FEED: MT
UK TRADE DEFICIT FALLS
The UK trade deficit has narrowed to £616m in January from a five-year high of £2.1bn in December, latest figures from the Office for National Statistics have revealed. Imports decreased by £2.5bn from December 2014, the largest monthly decrease since July 2006, according to the BBC. The large decrease in imports was mainly due to a £1.3bn fall in the imports of fuels, specifically oil.
http://bbc.in/1At9X7V
DATED: 18.03.15
FEED: ARN
CHERIE BLAIR TO JOIN RENAULT
Cherie Blair, wife of former Prime Minister Tony Blair, is expected to join the board of Renault next month. Renault, in common with other carmakers, is seeking to boost female representation among its most senior personnel.
Mrs Blair, 60, is a QC and legal expert on disputes resolution. Renault has said her appointment would improve the balance and diversity of its board, while adding valuable experience in human rights and employment law.
Her appointment over a four-year term is expected to be confirmed at a meeting of the board on April 30.
DATED: 18.03.15
FEED: ARN
LLOYDS BANK LAUNCHES CAR-LOAN FIRST
Lloyds Banking Group is introducing a new car-loans service that it claims Is an industry first.
The new product will allow banking customers to pre-arrange secured motor finance by completing an application online. Once they’ve chosen a car, they can then transfer the money to the selling retailer.
Initially, customers who bank via the Internet with the Halifax will use the service to buy used vehicles. However, Lloyds intends to widen its use to all its personal customers and also new vehicles. Called Halifax Car Plan Extra, the package offers hire purchase and PCP repayment schemes on deals between £3000 and £60,000.
For those with the best credit records, interest will be as little as 3.6%, which betters many retailer schemes. According to the Financial Times, no major High-St bank offers a comparable scheme at present (operating entirely online and offering secured loans).
Lloyds is dominant in UK retail banking, where it holds a quarter of all current account volume. However, in car finance is estimates that it currently has only 12% of the market – so this launch is intended to boost its presence in the sector.
DATED: 18.03.15
FEED: ARN
Marshall applies to float on London Stock Exchange
Marshall Motor Group has applied to list on the London Stock Exchange AIM.
In documents submitted this morning it said the likely date of the IPO would be 1 April, 2015.
“The group is the only dealer group in the UK to represent all of the top five prestige (being Audi, BMW, Mercedes-Benz, Land Rover and Jaguar) and top ten volume (being Ford, Vauxhall, Volkswagen, Nissan, Peugeot, Toyota, Citroen, Hyundai, Kia and Skoda) vehicle manufacturer brands,” it said.
The company has set up a plc holding website to comply with listing rules.
Marshall is rated number 10 in the Motor Trader Top 200 with annual turnover of £1.2bn.
Since taking control of the business in 2008, chief executive Daksh Gupta has grown the business from a small East Anglia-based family firm to a business with a footprint stretching from Hertfordshire to Yorkshire.
Since the beginning of 2009, Marshall Motor Group has added 36 branches to its portfolio and now operates about 71 franchised dealership businesses representing 23 different manufacturer brands.
The company currently sells around 55,000 new and used cars and services and repairs over 450,000 vehicles in its workshops. Marshall also operates five accident repair centres and one filling station.
In March last year Marshall appointed Peter Johnson as a non-executive director. Johnson has wide industry and City experience having done stints as chief executive at Marshall from 1990 before moving on to become chief executive of listed group Inchcape in 1995. He subsequently served as chairman of Inchcape.
DATED: 18.03.15
FEED: MT
Lookers director Bramall sells 10 million shares for £15.5m
Tony Bramall, a non-executive director at Lookers, has sold 10 million shares in the company for £15.5m.
The shares were sold by one of the companies represented by the family which still retains 16.15% of Lookers’ existing issued share capital.
Lookers issued a statement saying that it continued to have the backing of the Bramall family.
“The company has been informed that the sale does not alter the continuing support for Lookers by the Bramall family who believe that the company will continue the excellent growth it has shown over the past few years.”
Bramall, a non-executive director at Lookers since 2006, has an exceptional record as a car dealer building up and selling three highly successful and profitable dealer groups in the UK.
In 1967 he became MD of family firm Hamilton and Bramall, built up the company, floated and renamed it as CD Bramall and sold it to Avis for £97m in 1987.
Three years later he bought Sanderson Murray and Elder, and built that up until it was sold to Pendragon in 2004 for £230m.
He also launched Bramall & Jones. Its VW dealerships were sold to Lookers and its Audi dealerships to JCT600 for undisclosed sums.
DATED: 18.03.15
FEED: MT
European car sales rise 7% in February
Registrations of new cars in the European Union rose 7.3% in February to reach 924,440 units, according to the European carmakers association Acea.
It was the 18th consecutive month of growth. In the UK registrations rose 12% in a market driven by low interest rates, a recovering economy and attractive finance deals.
The Spanish market showed the strongest growth from a low base, up 26.1% driven by a joint government and industry scrappage scheme. Sales in Italy rose 13%.
Europe’s biggest market Germany saw growth of 6.6% and France grew 5.3% over the month but the market was largely driven by artificial sales.
According to IHS analyst Carlos Da Silva quoted in the AID Newsletter, self-registrations by car makers and dealers and sales pumped through daily rental account for 44% of registrations in Germany and 25% of registrations in France.
“We caution that the structure of the market is still quite shaky, current demand remains too dependent on artificial support,” said Da Silva.
Year to date registrations in Europe are ahead 7% to almost 2 million units, according to Acea.
Group sales at VW Group, Europe’s biggest carmaker, rose 11% in February. Registrations of models like the VW Golf, Seat Leon and Skoda Rapid were discounted by as much as 30%, according to a Bloombergreport, citing German research.
DATED: 18.03.15
FEED: MT
Chrysler to be withdrawn from sale in the UK
FIAT Group has announced its American partner Chrysler will be removed from sale in the UK by 2017.
Karl Howliss, Fiat Group UK’s deputy managing director, revealed the news and said that by 2017 Chrysler would be removed from the UK completely. According to Howliss this is due to the brand’s limited product range and poor CO2 emissions in the range, as reported by Auto Express.
Chrysler suffered from dismal 2014 sales in the UK, dropping below 2000 units sold. Last month the manufacturer sold 12 vehicles in the UK and the total for 2015 is just 69 units, less than half the figure for the same period last year of 181.
Chrysler told Car Dealer: ‘Although we have no official statement, we can confirm that the decision has been made to withdraw Chrysler from the UK and instead focus on other FGA brands. We’ve given our dealers 24 months’ notice of termination of contract.’
Dealers were informed officially yesterday and they will now focus on Jeep and Fiat, although it seems they all already knew.
Chrysler Bristol general manager Andy Semper told Car Dealer: ‘I think it’s the worst-kept secret in the UK. We first heard about it six or seven weeks ago but it wasn’t official. It was only yesterday that our dealer principal got the official message.’
Dealer principal at Westaway Northampton Derek Westaway said: ‘We’ve known about it for a long time.’
Chrysler is already shutting down sections of its UK website. Buyers are currently unable to see new car details for 300C or Grand Voyager and are instead taken to the used car section of the website. New car information on the brand’s supermini Ypsilon is still available via the website.
DATED: 18.03.15
FEED: CDM
BCA expected to sell for £1.2bn
BRITISH Car Auctions is close to changing hands in a £1.2bn takeover deal.
Britain’s largest used car dealer is expected to be sold to a City of London consortium after a plan to float the business earlier this year was scrapped.
The talks are with listed consortium Haversham Holdings. Some of the City’s biggest investors, including Invesco, Aviva Investors, Artemis and Schroders, are among them. Haversham was set up last year to buy ‘substantial companies and businesses in the UK and European automotive, support services, leasing, engineering or manufacturing sectors.’
On Saturday, Sky News stated insiders had reported £1.2bn was being raising by Haversham, which confirmed it was in ‘advanced discussions, which might lead to a transaction’ on Monday morning. However, it added that there could be no certainty that a transaction would proceed.
BCA is owned by Clayton Dubilier & Rice, the US private equity firm, and this is the second time in six months it has tried to sell the auction house. Clayton Dubilier & Rice is expected to receive a stake of about 10 per cent in Haversham as part of the deal.
If this deal goes ahead, it would allow BCA to gain entry to the stock market. This would also coincide with Auto Trader’s £2.5bn floating by rival firm Apax Partners.
DATED: 18.03.15
FEED: CDM
Passenger car registrations up for the 18th consecutive month
RESEARCH out today from the European Automobile Manufacturers Association has shown another consecutive month of growth for new passenger car registrations.
In February 2015, EU passenger car registrations recorded growth for the 18th consecutive month, up 7.3 per cent to 924,440.
All major markets contributed positively to the overall expansion. Spain’s share rose by 26.1 per cent, Italy was up 13.2 per cent and the UK increased by 12 per cent posting double digit growth. This was followed by Germany (up 6.6 per cent) and France (up 4.5 per cent).
From January to February 2015, new passenger car registrations increased by 7.0 per cent, totalling almost 2 million units (1,923,484). Most major markets posted growth, contributing to the overall upturn of the EU market. Germany increased by 4.6 per cent, France was up 5.3 per cent, the UK rose by 8.3 per cent as well as Italy (up 12.3 per cent) and Spain (up 26.7 per cent) increased over this period.
DATED: 18.03..15
FEED: CDM
Electric car residual value forecasts edge closer to diesel
ELECTRIC vehicle residual value forecasts are moving closer to traditional diesel cars as the used car market becomes more accustomed to EV technology, says Glass’s.
They have said that in some cases residual value forecasts are already broadly similar to their diesel equivalent.
Rupert Pontin, head of valuations, said: ‘The residual value gold standard for EVs is the Tesla Model S. Its minimum 220 mile range means that its three year/60,000 mile value is around 43 per cent – almost exactly the same as a well-established direct competitor, the BMW M535D M Sport.’
According to Glass’s, elsewhere in the market, EV values are also closing the gap on diesels. The Vauxhall Ampera Electron’s 27.58 per cent at 3 year 60,000 miles is not far adrift of the Insignia SRI CDTi’s 34.56 per cent while the BMW i3 extender Suite at 39.11 per cent is just a few points away from the BMW 320d Sport’s 43.46 per cent.
‘Clearly, there is still a difference here between EVs and diesels but there are signs that it is closing all the time. Crucially, when the overall running costs of an EV are taken into account, factors such as savings on fuel mean that they may beat traditional models,’ added Pontin.
A major boost, according to Pontin, in the last few months has been Nissan’s announcement that a new battery pack for the Leaf EV would cost 5000 euros.
He said: ‘RVs of the Leaf are among the poorest of the EVs at around 29 per cent at three years/60,000 miles because there are quite a number around. However, removing the mystery surrounding the battery pack pricing took away a large degree of uncertainty from forecasting its RVs. While 5000 euros is expensive, it is something that can be planned into a budget when you are making an RV forecast.’
The data suggests that EV RVs would continue to close the gap on diesels as used car retailers and buyers became more familiar with the technology. Critically, the battery power improving will mean a better real world driving range.
Pontin concluded: ‘EVs of one kind or another currently account for about 2 per cent of the market. However, if the UK is to meet its 2020 emissions target of 95g/km per vehicle, their penetration must increase quite rapidly. As this happens and they become a more familiar part of our daily lives, we expect EV RVs to firm up and stabilise.’
DATED: 18.03.15
FEED: CDM
Diesel’s bad and petrol’s good? That’s rubbish, says JLR chief
JEREMY HICKS, the MD of Jaguar Land Rover, agrees with the SMMT: it’s time to stop the demonisation of diesel.
Car Dealer Magazine caught up with Hicks at the Geneva Motor Show.
He gave us a great insight into the future of JLR, and what it means for dealers – and you can read all about it in the next edition of the magazine.
But we asked him that, if he became transport minister for a day, what would be his priority.
He didn’t need asking twice.
‘The first thing I’d do is ensure we have harmonised taxes for petrol and diesel,’ he said.
‘We have seen a real demonisation of diesel. Diesel is not bad.
‘If you look at the new Euro-6 diesels, we now capture 99.9 per cent of all particulates – it’s like Dettol, killing 99 per cent of all known germs.
‘Look at it from the consumer point of view. Why do they buy diesels? They buy them because they’re big lovers of CO2 and they deliver good levels of fuel economy. So why is this backchat going on that diesel is bad and petrol is good? I don’t get it. They are both equally good.
‘The improvements we have all made have been quite significant, and the government should get behind supporting the industry and delivering this.’
DATED: 18.03.15
FEED: CDM
Mustang website attracts more than 1 million in the first month
EUROPEANS have been going mad for the pony badge as the Ford Mustang went on sale in this continent for the first time in January this year.
The Mustang broke records, as more of the model were specified online than any other Ford vehicle before. The website attracted more than 1.1 million visits from mid-January to mid-February.
Data for that period indicated that the new Mustang equipped with the 310bhp 2.3-litre EcoBoost engine accounted for half of all configurations. The other half were specified with the 412bhp 5.0-litre V8 engine.
‘The rush to configure Mustang online represents 50 years of pent up demand across Europe,’ said Roelant de Waard, vice-president, marketing, sales and service, Ford of Europe. ‘For some people, the new Mustang is the car they have waited for their whole lives.’
Confirming European tastes for sports cars with accessible performance, the most popular specification overall was the EcoBoost-equipped model with six-speed manual transmission, chosen for 37 per cent of models configured. Manual transmissions overall accounted for two-thirds of models specified.
Of the five largest European sales markets – UK, France, Germany, Italy and Spain – the powerful 5.0-litre V8 engine was most popular in the UK (54 per cent) and Germany (60 per cent). The EcoBoost engine was most popular in Italy (61 per cent), Spain (59 per cent) and France (55 per cent).
The top colours were Race Red and black, each accounting for 20 per cent. In the biggest five sales markets, the most popular colours were. In the UK Race Red was the most popular accounting for 22 per cent and Deep Impact Blue was chosen by17 per cent.
DATED: 18.03.15
FEED: CDM
Seat is named ‘best fleet dealer sales network’
Seat has been named the top fleet dealer network for new vehicle sales in the 2015 Experteye awards.
The data gathered through Touchpoint, Experteye’s driver satisfaction survey, is voted for by fleet and business drivers themselves. Seat emerged the winner in its category, based on responses from around 40,000 lease vehicle drivers canvassed in 2014. It was also the only non-premium brand to receive an award for excellence in fleet customer service.
Seat UK head of Fleet and Business Sales Peter McDonald said: ‘The opinions of the men and women who drive our cars are crucial to our success in the business and fleet market. SEAT has made great strides in this sector in recent years and this is further proof that we are delivering satisfaction daily in both the quality of our models and our service. Our thanks go to them and to Experteye for the excellent way in which it monitors performance and customer satisfaction.’
Rick Yarrow, managing director of Experteye, said: ‘This is a tough category to win because it is based purely on drivers’ direct feedback, taken immediately after delivery of their new vehicle when the service experience is fresh in their minds.
‘All the results are produced from the independent views we receive from company car drivers, making SEAT deserved winners of the best fleet dealer network for new vehicle sales.’
DATED: 18.03.15
FEED: CDM
H.R. Owen opens new Aston Martin dealership in Reading
ASTON Martin has opened its latest new dealership in the UK in Pangbourne, Reading, as dealer partner H.R. Owen further extends its longstanding association with the luxury British sports car maker.
General manager Claus Andersen officially opened the new dealership last night. This new addition will complements H. R. Owen’s existing Cheltenham business.
The state-of-the-art facility features luxurious showrooms for new and pre-owned Aston Martin sports cars, a dedicated aftersales team and a workshop staffed by world-class Gaydon-trained technicians.
Located in a prime position close to both the M40 and M4 motorways, the showroom opening was attended by invited guests and key members of the Aston Martin senior executive team including Marek Reichman, Chief Creative Officer; Ian Minards, Director of Product Development; Christian Marti, Director of Sales Operations and Marcus Blake, General Manager, UK & South Africa.
Christian Marti director of sales operations at Aston Martin said: ‘I am very happy indeed to welcome H.R. Owen Reading to the strong and growing Aston Martin UK dealer network. With the unveiling just last week of exciting new cars such as the fantastic DBX Concept, Aston Martin Vulcan and our new GT3 racing inspired special edition Vantage at the Geneva Motor Show, Aston Martin is looking forward to a bright and successful second century. H.R. Owen’s decision to extend their association with us very clearly underlines their commitment to our brand.’
Mamad Kashani-Akhavan chief executive of H.R. Owen added: ‘At H.R. Owen we pride ourselves on representing the finest marques in the world and the chance to extend our partnership with Aston Martin is an opportunity we’re delighted to have been offered. The performance of our existing business at Cheltenham, and the loyal customer base we’ve built over the years, is something we intend to replicate at our Reading site. The team and I look forward to welcoming Aston Martin owners in the area into the H.R. Owen family.’
DATED: 18.03.15
FEED: CDM
SsangYong’s ambitious plans – and they include looking for new dealerships
SSANGYONG has announced ambitious plans for the future.
One part of that programme is bringing out one new model every year between now and 2020. And, says Paul Williams (pictured), the CEO of SsangYong UK, that’s a brand-new model, not just a bit of spit and polish and a quick refresh of an existing car.
And another part is recruiting new dealers to cope with what they expect will be unprecedented demand for their cars.
The manufacturer has 60 dealerships now, and hopes to increase that to about 75 by the end of the year.
Williams says: ‘Our company has a mission statement to be the most admired company in the sector.
‘To be the most admired doesn’t have to be the biggest, and it doesn’t necessarily mean the most profitable, and doesn’t have to be the best at any one thing, but to be a respected and valued business partner.
‘I believe that by working to that ethos we probably end up commanding better share of air time with dealer principals because they want to work with us.
‘We will never be the panacea for someone’s problems, but what we can be is an interesting and significant contributor to profit for a business that is already established. I need people who don’t need us – someone who needs us probably has core problems that we’re not the answer to.
‘Is it easy attracting dealers? What I can say, based on two years of continued growth, bearing in mind we doubled sales and will double it again this year, is that it is getting easier every day.
‘I don’t under-estimate it, it’s going to be a task, and we don’t appoint everybody who puts their hand up for it. We want dealers with the right attitude, not the right premises – attitude is all-important.
‘Last year we sold 1,800 cars retail, and this year we’ll do something between 3,500 and 4,000. We can get ourselves to 10,000 and 15,000 units, and that number shared between 70 dealers will be a really canny business for them and a very good business for us. It’s a size and scale that can be manageable, and a size and scale that can be profitable and yet we’ll still be small enough to have an intimate, light touch relationship with the dealers.
‘We’re never going to be a company that sells high volume. SsangYong’s role in life is to be a specialist SUV/crossover manufacturer. We have production capacity of around 250,000 – we may be able to stretch that to around 300,000, but in the great scale of things that’s nothing, there are some manufacturers in China probably pushing out that number every week.
‘Where will be in ten years’ time? It’s hard to predict, but I see us selling maybe 15,000 or 20,000 but certainly five-figure sales are within our grasp in a relatively short space of time.’
Williams is confident the new SUV launched in Geneva, Tivoli, will prove popular.
‘What will be the acid test for us is how the market reacts to Tivoli,’ he says. ‘But let’s not forget we already have an existing range that is contributing a fair bit to dealers’ bottom line and there is a place in the market for a good, honest, value car.
‘And in ten years a lot of people will have heard of SsangYong. I think sometimes we can turn things to our advantage – we’re that car with a funny name, that starts with two Ss and has a capital Y in the middle.’
DATED: 18.03.15
FEED: CDM
Most buyers are looking for their next car after you’ve closed your showroom for the night…
WANT to sell more cars? Then bolster your online presence – and make sure potential customers can get all the information they need without having to give you a call.
Why? Because the latest research suggests more and more people are researching their next purchase in the evening – yes, that’s right, when your showroom doors are shut, and your salespeople are safely tucked up in bed.
The news comes from Auto Trader, which says that, along with a rise in ‘evening research’, there are now fewer forecourt visits but more customers arrive on site without having made any prior contact with sales staff.
Auto Trader says: ‘We’re reminding all retailers to focus carefully on their “night watchmen”, the online points of contact that drive leads when doors are shut and when buyers are searching.’
The second Annual Buyer Behaviour Study, conducted by GfK for Auto Trader, pooled the experience of 1,300 car buyers spanning the first three months of this year. The sample comprised 16 dealers, four franchise groups – representing more than 250 dealerships with an even split between new and used-car purchases – ten independents and two car supermarkets, making it one of the most comprehensive studies of its type in the industry.
Other findings are that two-thirds of traffic to the Auto Trader site is generated by mobile and tablet with 86% of consumers now searching for their next car after 6pm.
While buyers do search at other times of the day, just 24 per cent of desktop users, 18 per cent of tablet searchers and 36 per cent of smartphone users said they were most likely to search between the hours of 9am and 6pm when dealers’ doors are typically open.
Only 50 per cent of franchise customers visited only the dealer from whom they bought their car compared with 47 per cent for supermarkets and 51 per cent for independents. The decline in dealer visits contrasts with an increase in the number of referrals to online showrooms. Most people visit at least three as part of the buying journey, with the average standing at nearly five.
Walk-ins are now the first point of consumer-dealer contact in 58 per cent of transactions. For franchise dealers, the research revealed a higher figure at two thirds (66 per cent), compared with 50 per cent when asked the same question a year ago.
A slightly lower figure was reported for car supermarkets, with 63 per cent of customers making first contact through a walk-in while, for independents, the figure was much lower albeit still nearly half of all transactions (48 per cent).
Nick King, market research director, says: ‘This latest research continues to frame a buying journey where a forecourt visit is increasingly the affirmation of a decision made following extensive research online.
‘In this new online environment, things like full page ad views and a content-rich,responsive dealer website become key tools in driving leads. They are the night watchmen for your dealership, the professional face of your online business that drive leads out-of-hours, or in the absence of any active engagement with you or a member of your team.’
DATED: 18.03.15
FEED: CDM
Seat starts extensive refurb programme at dealerships
SEAT dealerships around the country are undergoing a complete refurbishment – the first freshening-up of the CI for 14 years.
We caught up with Seat UK director Neil Williamson in Geneva, and he was excited about the rebranding programme.
And he said the manufacturer would be helping out with the cost.
He told us: ‘In the UK, we are just embarking on a complete refresh of our dealers’ look and feel, our corporate identity – we haven’t changed it for 14 years, and if I’m honest, some are looking a little bit tired.
‘I’m not saying they’re not in good condition, just that they are a bit dated – if you have a 14-year-old kitchen, it’s going to look a bit ordinary. The new look is very white, it’s very red, very Mediterranean colours, and the exterior is very different.
‘I went to the second new one the other week, JCT600 in Bradford, a brand-new refurbishment of that business, and it looks amazing – it’s clean, it’s white, it’s sharp, it feels warm inside, and the people who work there love it. At the launch event, the customers loved it. It matches the cars – the cars are great, up to the minute, really stylish.
‘I used to be a car dealer, so I know what it’s like running car businesses at the sharp end, and when you refurbish, immediately your staff feel better about themselves – they feel as if there’s a future, that the business is investing in them, they have a nicer working environment, their colleagues feel better about themselves. They’re more on their toes, feel sharper about life, and guess what – they sell more cars. They’re better at servicing cars.
‘Customers come in and say “ooh, it’s nice here, the coffee’s better, the chairs are better” and they feel better about life, and all those aspects work off each other. You see an increase in customer satisfaction scores, and an increase in all the classic KPIs – it just feels a better place to be.
‘It seems crazy, you’ll spend a bit of money on bricks and mortar and nice desks, but it pays back, and pays back quickly – you get an immediate win out of it.
‘We’re helping dealers with the cost. We’re a brand with a certain cloth to cut. The average cost per site is about £70,000 for a full refurb, and we’re paying half of that, which is really quite generous. We’re being sensible about it – ask the dealers, they’ll tell you what they think. After I announced this, I was sitting next to a dealer and he was straight on the phone and telling his people he wanted all five of his sites done now.
‘We’re less on the hi-tech side, like Audi and our sister brands which are right up there, we’re more traditional but very sharp.’
DATED: 18.03.15
FEED: CDM
ALL-NEW SORENTO DRIVES KIA FURTHER UPMARKET
- New, third-generation flagship for Kia in the UK
- Start of second phase of Kia's brand transformation
- Major strides in engineering, refinement and quality
- New technologies, some never before offered in a Kia
- Seven seats, EU6 diesel engine and all-wheel drive as standard
- Emissions reduced; fuel economy improved
- Longer, lower, wider, roomier and more practical and versatile
- Priced from £28,795
Today Kia launches the all-new Sorento, a car that is set to build on its consistent appeal to a diverse range of customers. This third-generation model will again change the way people see the brand as it is better equipped, more refined, stylish and technologically advanced than ever before. Six versions of Kia's UK flagship are now on sale, with prices starting at £28,795.
All versions of the new Sorento are powered by an EU6-compliant 2.2-litre turbodiesel engine which produces fewer harmful tailpipe emissions, is more fuel-efficient, less damaging to the environment, and which reduces running costs for personal and business owners. All have a new, permanent, intelligent all-wheel drive system and a versatile seven-seat interior. There are four trim levels, badged KX-1, KX-2, KX-3 and KX-4. Depending on model, buyers have the choice of six-speed manual or automatic transmission.
The third-generation Sorento is longer, lower and wider than the previous model thanks to an all-new platform, while an extended wheelbase creates greater room in all three rows of seats. Minutely detailed body and chassis engineering work has resulted in a car which is not only more engaging to drive, but also much more refined to travel in. Safety and convenience technologies new to the Sorento, and in some cases new to any Korean SUV, include Advanced Smart Cruise Control, Blind Spot Detection, Rear Cross Traffic Alert, Lane Departure Warning, Around View Monitoring, Adaptive Front Lighting and Speed Limit Information.
Executive class in every way
In 2006 Kia began a design-led revolution following the appointment of Peter Schreyer as Chief Design Officer - now President of Design for the entire Hyundai Motor Group. It was to be the start of Phase I of Kia's move away from being a company primarily focused on value. Phase II, which starts with the new Sorento, will see Kia match and surpass not only customer expectations but also the world's best car manufacturers for engineering, technology, refinement and quality.
The new Sorento offers executive-class space and versatility to match its executive-class style, quality and refinement. It is 95mm longer than the second-generation Sorento, has an 80mm greater wheelbase (now 2,780mm), is 15mm lower and 5mm wider. The significance of these dimensions is that headroom and legroom have been improved in all three rows of seats, and there is up to 90 litres more luggage capacity.
When starting work on the car, Kia had to decide whether to make it even more gentrified and saloon-like than the outgoing model, or to retain that car's much-valued towing and off-roading capability. In the end, it was able to do both.
The new model preserves familiar Sorento design cues like the shape of the D-pillar, but now has a sleeker profile which disguises its increased size, and deeply sculpted surfaces. The lower roof, rising belt line and more sweeping profile make it look bolder and more muscular, and for the first time there are pronounced rear shoulders in place of a crease line beneath the windows to give the car greater three-dimensionality.
Wrap-around, frame-integrated side doors fit more snugly into the overall profile of the car and allow for a wider opening. They also help to keep the seals completely free of dirt and moisture thrown up from the road, preventing passengers' clothes and hands from getting soiled. The rear features a highly sculpted registration plate housing, made possible by new laser-welding technologies being employed by Kia for the first time.
The new Sorento is the first car to be produced under Kia's new Global Quality Strategy, which became fully operational at the start of 2014. In the choice of materials, fit and finish and technology, the new Sorento is a significant step forward for Kia.
The Sorento designers spent a lot of time on the architecture of the cabin to reinforce its increased quality, space and practicality. The shape of the bottom of the windscreen was carefully crafted to emphasise the car's width, for example, while the sculpted lines give an impression of solidity, originality and modernity. Switches and buttons have been fastidiously grouped according to function and ergonomics, and they have an almost machined finish and action.
The standard instrument cluster features clear, stylish, white-on-black graphics which deliver essential information at a glance, but in KX-3 and KX-4 versions this is replaced by a seven-inch TFT (Thin Film Transistor) display which adds an even more premium look to the dashboard and allows greater personalisation of the information provided.
Already the new Sorento is reaping design awards. It has received the prestigious IF Design Award in Germany, with the international jury recognising not only the car's aesthetics but also its finish, innovation, environmental impact and safety. The Sorento is the seventh Kia to receive an IF Design Award.
Cleaner, more fuel-efficient EU6 diesel engine
In the UK all versions of the Sorento are powered by the 2.2-litre version of Kia's R-family turbodiesel engine, which now meets EU6 emissions requirements. It features a new, fourth-generation common-rail fuel injection system with increased injection pressure.
The intake manifold, cylinder head cover and oil filter housing are made of plastic to help trim weight, and now the cylinder walls are 1mm thinner, which has helped the engine to shed 5kg. With a new intake manifold featuring electronic swirl control and a revised exhaust gas filtration system that promotes the recirculation of clean, cool, low-pressure exhaust gas, the R-family diesel engine is cleaner and more efficient than ever.
An exhaust after-treatment system means that it not only meets current emissions regulations but will be able to satisfy those to come in future. There is a particulate filter with an acoustic shield and a lean NOx trap to reduce harmful nitrogen emissions to negligible levels.
The engine now develops 197bhp (an increase of 3bhp) and 441Nm of torque (plus 19Nm), endowing the Sorento with outstanding driveability on- and off-road. A balancer shaft reduces vibrations and ensures the engine is extremely refined. Performance has been improved so that acceleration from 0-62mph now takes just 9.0 seconds (auto 9.6 seconds), and all versions have a top speed of 124mph.
For the first time in a Kia, automatic models as well as manuals feature the company's Intelligent Stop & Go (ISG) engine stop/start system to ensure that no fuel is used and no emissions are created when the car comes to a halt. This helps to improve both air quality and noise levels in urban areas. Automatic versions also have Kia's Active ECO feature, which adjusts the operation of the engine and transmission to promote maximum fuel economy in motion. As a result, all versions of the new Sorento have lower fuel consumption and emissions. Manual models on 17-inch wheels have combined economy of 49.6mpg with CO2 emissions of only 149g/km, while for all automatics the respective figures are 42.2mpg and 177g/km.
Superior traction, comfort and refinement
The new Sorento features the Dynamax all-wheel-drive system first seen in Kia's compact SUV, the Sportage. Dynamax is an intelligent, electronically controlled all-wheel-drive system from Magna Powertrain. It continuously monitors driving conditions and anticipates when all-wheel drive will be needed, rather than simply reacting to changing conditions.
Normally it delivers 100 per cent of engine torque to the front wheels, but the torque can be redistributed up to a maximum of 60:40 front-to-rear to enhance cornering stability or if road conditions deteriorate. For off-road driving, owners can manually select lock mode, which gives a 50:50 torque split at speeds of up to 25mph.
In the Sorento it is paired with Advanced Traction Cornering Control (ATCC). Compared with all-wheel-drive systems which control wheelspin by braking a spinning wheel or reducing engine torque, ATCC automatically and instantaneously transfers torque to those wheels which still have grip, even before the Electronic Stability Control (ESC) system can intervene. This is linked with Hill-start Assist Control (HAC) which prevents slip-back when setting off uphill and eliminating the possibility of wheelspin.
All versions have Trailer Stability Assist to make towing safer. It works through the ESC system, and continuously monitors vehicle stability, gently applying some front braking force if it detects a potential loss of control.
Kia engineers have also striven to ensure the new model delivers more of a luxury-car ride and more engaging and precise on-road handling. To this end, the new Sorento has new suspension systems at the front and rear, and is the company's first SUV to feature rack-mounted Motor Driven Power Steering (R-MDPS).
Previously, the electric motor module which controlled the steering was mounted half way up the steering column. With R-MDPS it is mounted directly to the steering rack. This brings the twin benefits of sharper responses and greater precision. Kia likens it to trying to steer a blindfolded person from behind: if you direct them from the waist they are able to follow a more precise path than if directed at shoulder level.
Drive Mode Select is also fitted to versions with automatic transmission. This allows the driver to select three steering modes, from a more comfort-oriented to a firmer, more sporty feel, according to preference. It also modifies the automatic transmission shift pattern.
Refinement is one of the key distinguishers in cars which aspire to be premium. It refers to the suppression of unwanted sounds and vibrations - what engineers call NVH, or noise, vibration and harshness.
A solid, stiff body shell is essential if NVH is to be kept in check. Despite being considerably larger than the previous Sorento, the new model is 14 per cent torsionally stiffer, helped by the use of 53 per cent advanced high-strength steel in the body construction versus 28 per cent in the last model.
Sound absorption and insulation materials have been used liberally throughout the car, There are insulating pads in the dashboard, transmission tunnel and around the front wheel arch and wing areas. Even the dashboard has a 29 per cent thicker soundproofing panel
The improved aerodynamics of the new Sorento, which has a remarkably low drag coefficient for an SUV of 0.33, help to curtail wind noise. Airflow over the body is improved by a new rear spoiler and carefully shaped tail lamp clusters, and the underside has full-size aerodynamic shields 250 per cent larger than in the previous Sorento.
The result of this and other detailed noise suppression measures is a reduction in noise inside the cabin of three per cent at idle and up to six per cent when the car is in motion.
Four trim levels and advanced new technologies
All four luxuriously appointed trim grades have seven seats, now with a 40:20:40 split in the middle row and a 50:50 split in the rear a six-speed automatic gearbox is optional in place of the six-speed manual on KX-2 and KX-3 and standard with KX-4. From KX-2 upwards, buyers have the choice of ordering the car without the self-levelling suspension feature at a saving of £500.
Depending on model, the new Sorento features a number of highly advanced new safety and convenience technologies. Some are firsts for any Kia, while others are appearing on a European-specification Kia for the first time.
They include Adaptive Smart Cruise Control to maintain a gap to the vehicle ahead, Speed Limit Information, Around View Monitoring, Cross Traffic Alert to prevent the owner from backing out of a parking space into the path of an approaching vehicle, a Smart Park Assist System which now includes reverse and parallel departure functions, Lane Departure Warning with Blind Spot Detection and self-dimming Adaptive Front Lighting.
Highlights of the extensive standard features include alloy wheels (17", 18" or 19" depending on grade), black side sill and wheel-arch mouldings, roof rails and a rear spoiler, cornering lights integrated into the foglights, LED daytime running lights, front wiper de-icers, electrically adjustable, folding and heated door mirrors with LED indicators, door sill scuff plates (aluminium with front illumination for KX-2 upwards)
steering wheel-mounted controls, all-round electric windows, cruise control with a speed limiter and reversing sensors, while safety is taken care of by Electronic Stability Control, Vehicle Stability Management, Trailer Assist, ABS with Electronic Brake Force Distribution and Brake Assist, six airbags, active front headrests, front seat belt pre-tensioners and load limiters and an active bonnet to protect pedestrians.
In KX-2 these are supplemented with chrome exterior door handles, a side sill chrome garnish, automatic light and wiper control, black leather/faux leather upholstery, heated front and outer rear seats, dual automatic air conditioning in place of standard air conditioning, 7" touchscreen sat-nav with European mapping and Traffic Messaging (TMC), a reversing camera linked to the touchscreen and self-levelling suspension (no-cost delete option).
To this, the KX-3 adds a panoramic sunroof with automatic one-touch blinds, xenon headlights with automatic levelling, the Adaptive Front Lighting, 8'' touchscreen satellite navigation with European mapping and TMC, an eight-way power-adjustable driver's seat, alloy pedals, an engine start/stop button and smart entry system, a smart powered tailgate, an Infinity premium sound system, a 7" TFT LCD colour instrument display, the Lane Departure Warning system and Speed Limit information.
The luxurious range-topping KX-4 is distinguished by a 10-way power-adjustable driver's seat with four-way powered lumbar adjustment and an eight-way adjustable front passenger seat, ventilated front seats, Adaptive Cruise Control, the 360-degree Around View Monitor, the Smart Park Assist System, Blind Spot Detection and Rear Cross Traffic Alert.
UK versions of the new Sorento are built at Kia's Hwasung factory in Korea, and, as with every other model, are covered by the company's industry-leading seven-year or 100,000-mile transferable warranty, subject to the exclusion of routine wear-and-tear items.
Essential facts and figures
Model
|
Power bhp
|
Torque Nm
|
0-60 sec
|
Top speed
|
Ave mpg
|
CO2g/km
|
2.2 CRDi 6-speed manual KX-1
|
197
|
441
|
9.0
|
124
|
49.6
|
149
|
2.2 CRDi 6-speed manual KX-2
|
197
|
441
|
9.0
|
124
|
46.3
|
161
|
2.2 CRDi 6-speed auto KX-2
|
197
|
441
|
9.6
|
124
|
42.2
|
177
|
2.2 CRDi 6-speed manual KX-3
|
197
|
441
|
9.0
|
124
|
46.3
|
161
|
2.2 CRDi 6-speed auto KX-3
|
197
|
441
|
9.6
|
124
|
42.2
|
177
|
2.2 CRDi 6-speed auto KX-4
|
197
|
441
|
9.6
|
124
|
42.2
|
177
|
Pricing
Model
| |
2.2 CRDi 6-speed manual KX-1
|
£28,795
|
2.2 CRDi 6-speed manual KX-2
|
£31,995
|
2.2 CRDi 6-speed auto KX-2
|
£33,745
|
2.2 CRDi 6-speed manual KX-3
|
£35,845
|
2.2 CRDi 6-speed auto KX-3
|
£37,595
|
2.2 CRDi 6-speed auto KX-4
|
£40,995
DATED: 18.03.15
FEED: HA
|
