Auto Industry Digest Issue no



[pic] Issue no.482 This week’s news for company executives July 26, 2012

Fleet file_____________________________________________________

BVRLA fights back against Government fleet ‘tax attack’

A FIGHT back against the Government’s bid to earn an extra £2 billion from company car tax between 2013 and 2017 has been launched by the British Vehicle Rental and Leasing Association (BVRLA).

It has written to HM Treasury to express concern over the business car tax measures outlined by Chancellor of the Exchequer George Osborne in the spring Budget and has assembled a ‘Business Car Taxation Taskforce’ to develop lobbying strategies and technical arguments against what it sees as discrimination against the sector.

The Budget introduced a series of changes to the company car tax regime and made it much harder for BVRLA members and their customers to claim tax relief (capital allowances) on lease and rental vehicles. 

Documents obtained by the BVRLA under the Freedom of Information Act show that the Government hopes to earn an extra £2bn from company car tax between 2013 and 2017 and make nearly one million fewer business cars eligible for 100% first year or standard tax relief during the same period.

The BVRLA believes the changes will place an even more disproportionate tax burden on essential road transport users and remove a vital stimulus for the ultra-low carbon vehicle market.

The ‘tax attack’ on fleets sees:

• The appropriate percentage of list price subject to benefit-in-kind tax increase by one percentage point for cars emitting more than 75 g/km of carbon dioxide, to a maximum of 35% in 2014/15, and by two percentage points, to a maximum of 37% in both 2015/16 and 2016/17.

• From April 2015, the five-year exemption for zero carbon and ultra low carbon emission vehicles will come to an end. The appropriate percentage for zero emission and low carbon vehicles will be 13% from April 2015 and will increase by two percentage points in 2016/17.

• From April 2013, the Government will extend the 100% first year allowance for businesses purchasing low emissions cars for a further two years to March 31, 2015. But it will reduce the carbon dioxide emissions threshold below which cars are eligible for the first year allowance from 110 g/km to 95 g/km, and leased business cars will no longer be eligible for the first year allowance.

• Additionally, the carbon dioxide emissions threshold for the main rate of capital allowances for business cars will reduce from 160 g/km to 130 g/km. The threshold above which the lease rental restriction applies will also reduce from 160 g/km to 130 g/km.

BVRLA chief executive John Lewis said: ‘Tax incentives for reducing fleet emissions have worked too well and the Government is worried about falling revenues.

‘But these measures are ill-advised, unfair and over aggressive. There is almost total consensus across the road transport and automotive industry that the Government is in danger of erecting a massive roadblock across the road to low-carbon motoring.’

The newly-formed taskforce plans to commission an independent report that will use member statistics and other data to challenge unfair elements of the Government’s capital allowances regime.

In particular it wants to reverse the decision to remove the 100% first-year capital allowances available on low-emission vehicles from leased cars, which would also impact rental firms.

The group will also seek to challenge the continuing application of the Lease Rental Restriction, which prevents companies deducting the full cost of leasing or renting certain cars from their taxable profits.

The BVRLA has already started trying to persuade the Government to introduce a more gradual increase in company car tax for people driving cars emitting between 0 and 75 g/km after April 2015.

At the moment, these cars will go from either being taxed at a zero rate or 5% of their P11D price to a 13% rate overnight. It is already making company drivers hold back on choosing an ultra-low emission car while they re-evaluate the impact on their take home pay.

‘We understand the need for austerity measures, but this assault on essential road users will result in more harm to the environment. It is even more misguided than the Pasty Tax,’ said Lewis.

Businesses cut costs with extended contracts and longer new leases

CONTINUING challenging economic conditions mean that fleets are both extending existing company car contracts and taking out new leases for longer periods of time, according to data from Ogilvie Fleet.

The contract hire and leasing company with in excess of 10,000 company cars and vans on its books says it prides itself on its client flexibility and believes that is helping it to continue to expand its fleet notably at a time when many rivals are seeing the number of vehicles they operate shrink.

Statistics from Ogilvie Fleet reveal that businesses are extending the period of time that they operate company cars in two ways to cut costs. Firstly, existing contracts are being extended and secondly new contracts are being taken out for a longer period of time.

Ogilvie Fleet’s financial year runs from July 1 to June 30 and data for the last three years reveals that:

• 2009/10 - the term of all live contracts averaged 38 months across the total fleet; 25% of all new orders were placed for a period in excess of 36 months

• 2010/11 - the term of all live contracts averaged 40 months across the total fleet; 32% of all new orders were placed for a period in excess of 36 months

• 2011/12 - the term of all live contracts averaged 41 months across the total fleet; 46% of all new orders were placed for a period in excess of 36 months

Ogilvie Fleet sales and marketing director Nick Hardy said: ‘Existing company car contracts may be for 36 months but clients are not always confident enough in the economy to take out a new lease. Instead they are extending the contract period on existing vehicles. The rental adjustment typically delivers a ‘double figure percentage’ monthly saving if extended for 12 months.

‘We have no issue with lease extension as long as cars are in good condition and will have less than about 100,000 miles on the clock at defleet.

‘Not all leasing companies implement a rental rate reduction when contracts are extended so Ogilvie’s flexibility in agreeing to do so is welcomed by existing clients as well as new ones.’

In relation to the near doubling of the number of new company car contracts written for longer than the historic benchmark of three years/60,000 miles - typically 42 or 48 months - Hardy explained: ‘Fleet operators are looking to Ogilvie Fleet to help them cut budgets by typically 10%.

‘The easiest and simplest way to do that is to lease a car over a longer period of time. As a result they are achieving monthly rental savings of 10-15% which means they are meeting their objective.’

Although operating vehicles into a fourth year increases the proportion of the total rental related to service, maintenance and repair (SMR) costs, many manufacturer warranties expire at the end of the third year and total mileages increase typically to four years/80,000 there was a rental reduction as the residual value curve flattened out, said Hardy.

‘Most new cars and vans are easily capable of running to four years, even with six-figure mileages, and many of our clients have used some of the cost saving, and better financial modelling with Ogilvie True Cost, to provide drivers with a better car. This minimises the potential HR implications of asking drivers to keep a car for a year longer and is a win-win in most cases,’ he said.

Alphabet’s UK lease fleet exceeds 100,000 vehicle milestone

ALPHABET’S continued strong growth since acquiring ING Car Lease in 2011 has seen the company’s leased fleet in the UK surpass the 100,000 vehicle mark.

Multi-marque vehicle supplier Alphabet, which is part of BMW Group, is now the UK’s third-largest fleet funding and management company. At the time the merger was completed in October, the company had around 96,750 vehicles in its portfolio. The figure is now at over 105,000.

It was Next Plc, a customer of both Alphabet and ING individually before the merger, which placed the landmark order that took Alphabet’s portfolio to 100,000 vehicles.

Greg Taylor, commercial director of Alphabet, formally handed the keys of the Nissan Juke five-door hatch 1.5 dCi Acenta to Next HR manager - business systems and company cars, Avelino Zuzarte, at Next’s Leicester headquarters.

Zuzarte said: ‘It’s always good to see a valued supplier achieve a major milestone for their business. Of course, the key factors in our relationship are the quality of service and value for money we receive.’

ING has been a supplier to Next for a number of years. Alphabet became joint supplier in 2010.

Taylor said: ‘We’ve always seen customer satisfaction and longstanding relationships as the keys to successful growth. At the same time, becoming a major presence in the fleet market allows us to pass on the benefits of scale to our customers, both with existing products and with the exciting new vehicle management and sustainable mobility solutions that we have in the pipeline.’

Scottish and Southern Energy plugs into Vauxhall Ampera

SCOTTISH and Southern Energy (SSE), the broadest based energy company in the UK, has taken delivery of six new Vauxhall Ampera Extended-Range Electric Vehicles (E-REV).

As well as being introduced to SSE’s company car scheme, the revolutionary Amperas will also be included in the pool car fleet at various sites across the UK.

SSE’s chief executive Ian Marchant received the new Ampera Positiv - Scotland’s first Ampera in a corporate fleet - from Mike Lauriello, corporate relationship manager at Lex Autolease. The six Amperas are being leased via Lex Autolease.

Marchant said: ‘We are proud to be the first major fleet, and the first utility company, to put an electric car onto our company car policy.

‘As the UK's largest generator of electricity from renewable sources, we take our commitment to the environment very seriously. We are running the Ampera in our fleet as an electric vehicle that is usable every day and can cope with business needs.’

In addition to the pool cars, SSE Group fleet manager, Paul Groundwell, has also specified an Ampera Electron as his company vehicle.

An Ampera will also be going on display at the Scottish Hydro Centre for Renewable Excellence in Glasgow. Scottish Hydro, part of the SSE Group, is using the exhibitions at the centre to educate the public about renewable energy and has created an ‘Electric Car Garage’ where electric cars are available for free test drives.

Lex Autolease manages around 7,500 of SSE’s fleet of vehicles, which includes providing advice on vehicle selection and fleet best practice as well as financing.

IMI accredited training courses support increased ATS SMR focus

ATS Euromaster says it has enhanced its range of training courses for car and van technicians to place a major emphasis on the company’s growing skills base in the service, maintenance and repair (SMR) sector for cars and light commercials.

It marks the start of a new relationship between ATS Euromaster and the Institute of the Motor Industry - a professional association for individuals working in the automotive sector - with new courses designed by the ATS Euromaster’s technical services team and fully accredited by the IMI.

The courses cover everything from car and van tyre fitment to air conditioning servicing, vehicle diagnostics, battery fitment, wheel alignment, scheduled maintenance servicing, brakes, steering, suspension and exhausts.

ATS Euromaster has supported the introduction of the IMI courses with the purchase of modern Volkswagen ‘test’ cars, in addition to existing vehicles based at each of the company’s six primary training centres. These permanent ‘test’ cars allow technicians to refine their skills on modern vehicles featuring the latest specification brake and steering assemblies on the market.

The IMI training course is delivered by ATS Euromaster’s eight resident technical training team members, who are collectively responsible for overseeing training for ATS Euromaster’s 2,000-strong team of professional technicians.

ATS Euromaster expects to train over 1,500 technicians a year on these courses and in other technical related subjects.

Pendragon puts Tenet Group in the driving seat with full fleet solution

ONE of the largest and longest-established financial adviser support groups, Leeds-based Tenet, has selected Pendragon Contracts to supply and manage its contract hire fleet following an extensive review of potential suppliers. 

The leasing company won the contract as a result of its full fleet solutions programme and cost competitiveness, which will enable Tenet Group to operate an environmentally-friendly 60-strong company car fleet.

Pendragon Contracts has completely redesigned the Group car policy devising a new banding allowance that incorporates five different grades of vehicle. 

As a result, it will provide a cost-effective mixed badge contract hire proposition, including Audi, BMW, Mercedes and Volkswagen. It will also address the company’s daily rental needs from a wide choice of short term rental vehicles.

Lisa Woods, head of HR at Tenet Group, said: ‘We were impressed by Pendragon Contracts’ consultancy approach as well as its online processes and reporting. Its recommended programme will ensure we exert total control over our fleet and save money at the same time.’

John Given, sales director of Pendragon Contracts, said: ‘While cost has been an important factor in this tender, Tenet Group identified the value to its business of our full fleet solutions and flexible, proactive approach.’

GreenRoad expands to the continent with Securitas Mobile Belgium

DRIVER performance and safety management company GreenRoad has won its first contract in mainland Europe.

Securitas Mobile Belgium will be deploying GreenRoad across 120 company cars to reduce accidents, cut insurance costs and lower fuel consumption.

The Brussels depot is the first to go live using GreenRoad localised into both Flemish and French.

GreenRoad will help both Securitas Mobile company executives and its mobile security workforce understand their driving behaviour in order to reduce risk through instant feedback in the cars and in-depth online analysis and recommendations.

According to Kristof Philips, the Securitas Mobile project manager: ‘We want to understand what happens when each of our 320 drivers leave the depot. But with such a large fleet it is impractical except using GreenRoad. With GreenRoad it is as if we are there in the passenger seat with each driver sensing every risky manoeuvre and understanding how to improve driving performance.

‘We operate in an industry sector with high staff turnover and lots of night-shifts so it is important to give our mobile agents pride in their jobs and their vehicles. After all they are the very public face of our business. We believe GreenRoad can contribute hugely in this area.’

The GreenRoad system provides instant feedback on driving performance using a red-amber-green LED display on the dashboard. Through its online portal, GreenRoad provides drivers and fleet managers with real-time, comprehensive feedback, online reporting, analysis and coaching on their abilities, manoeuvres and patterns.

Model update________________________________________________

Toyota helps cut ownership costs with new Prius Plug-in

TOYOTA’S new Prius Plug-in delivers distinct advantages in terms of its extended all-electric driving range, exceptionally low carbon dioxide emissions and, when running in full hybrid mode, excellent fuel economy, according to new data.

Not only do these contribute to strong environmental profile, they also support competitive day-to-day running costs for motorists.

As Prius Plug-in arrives in the UK, there is no other car on the market that exactly matches the benefits offered by its Hybrid Synergy Drive full hybrid powertrain, claims Toyota.

It offers the near-silent, zero emissions performance of an electric vehicle, being able to run on its lithium-ion battery for around 15.5 miles and at speeds up to 51 mph. When battery charge runs low, the car’s full hybrid system - which includes a 1.8 litre petrol engine - takes over, so drivers doesn’t have to worry about whether the car has enough power to reach its destination.

Compared to the Vauxhall Ampera, which uses a petrol engine as a ‘range extender’ to support the electric motor, Prius Plug-in offers a higher specification, more seats on board and can save almost £2,000 on costs over three years/60,000 miles with its greater range and quicker battery charging time, it claimed according to data calculated by Kwikcarcost (see table below).

|  |TOYOTA PRIUS PLUG-IN |VAUXHALL AMPERA |

|OTR price (including £5,000 OLEV grant) |£28,630 |£32,250 |

|Driving range |769 miles |300 miles |

|Battery charging time |90 minutes |4 hours |

|Cost to charge |£0.50 |£2.20 |

|Cost per mile fuel + electricity |3.9p |4.4p |

|Number of seats |5 |4 |

|Navigation system |• |- |

|Rear-view camera |• |- |

|Specification adjustment value vs Prius Plug-in |- |+£4,017 |

|Whole life costs over 3 years/60,000 miles* |£36,272 |£38,130 |

Independent car data specialist Kwikcarcost also rates Prius Plug-in a stronger proposition for company car drivers in terms of cost-per-mile, compared to the Peugeot 508 Hybrid4 saloon and Vauxhall Ampera.

The Toyota comes in at 60.45p, compared to 69.12p and 63.55p for the Peugeot and Vauxhall respectively. In the course of a year - an average 20,000 miles - that will see the Toyota costing £700 less to run than the Vauxhall and more than £1,700 less than the hybrid 508.

For company car drivers Prius Plug-in (49 g/km emissions) attracts a 5% benefit-in-kind tax rating for the first three years, rising to 13% in year four. For fleet operators it benefits from a 100% write-down allowance in the first year.

Audi extends Q3 range with new quattro-equipped model

AUDI has extended its Q3 range with the launch of its 250th quattro-equipped model variant - the 2.0 TDI quattro 140 PS.

Now available and priced from £26,510 on-the-road to £29,260, the model is expected to account for up to 40% of total Q3 UK sales.

The new entry level version to Audi’s compact SUV range, the model returns up to 49.6 mpg on the combined fuel cycle and has emissions of 149 g/km.

SE and S line specification levels are available, the former including 17-inch alloy wheels, rear parking sensors, dual-zone climate control, a concert audio system with 6.5-inch manually retractable colour display screen, preparation for SD card navigation, Bluetooth interface, Audi Music Interface iPod connection and light and rain sensors.

S line specification adds larger 18-inch alloy wheels, S line exterior and interior styling enhancements, xenon headlamps with LED daytime running lamps and LED rear tail lights.

New Mazda6 with SKYACTIV technology to debut at Moscow show

THE new Mazda6 - the second model in the manufacturer’s new generation of models which incorporate both the full range of SKYACTIV technologies and the new KODO ‘Soul of Motion’ design language, will debut at the Moscow Motor Show on August 29.

On the stand will be the saloon variant, which will also the first Mazda equipped with the company’s new brake energy regeneration, i-ELOOP.

 

The introduction of i-ELOOP marks stage two of Mazda’s ‘Building Block Strategy’ for environmental technology development. The strategy calls for the completion of thorough and far-reaching improvements in traditional automotive technologies, before moving to the step-by-step introduction of electric devices to further improve vehicle fuel economy and reduce carbon emissions.

New Mazda6 will be the flagship model in the manufacturer’s new vehicle line-up and follows the recently-launched CX-5 in its adoption of breakthrough environmentally-friendly SKYACTIV technologies.

The model to be exhibited in Moscow is a Russian-specification saloon equipped with a direct-injection SKYACTIV-G 2.0 litre gasoline engine and six-speed SKYACTIV-Drive automatic transmission.

New Kia Carens to debut at Paris Motor Show

KIA’S all-new Carens compact MPV will make its world premiere at the Paris Motor Show on September 27.

Promising a completely fresh, sleek, cab-forward design, lower roofline, longer wheelbase, larger wheels and chrome beltline accent, the new Carens, says Kia, has been conceived around the theme ‘dynamic space’.

Manufacturer news___________________________________________

Booming Jaguar Land Rover create another 1,100 jobs

A TOTAL of 1,100 new jobs are being created to build new Jaguar models - including the new XF Sportbrake - as the manufacturer responds to booming demand for models.

The jobs are being created at Jaguar’s Castle Bromwich manufacturing plant in the West Midlands and add to the thousands of new jobs already created by Jaguar Land Rover in recent years to meet demand for vehicles, particularly overseas.

Dr Ralf Speth, Jaguar Land Rover CEO, said: ‘Innovation in design, engineering and technology is at the core of our business and for the UK, this means we will continue to invest in new products, develop new technologies and enhance the skills of our employees.

‘The launch of our latest Jaguar models, including the new XF Sportbrake later this year, means it is a very exciting time for Jaguar. These new models will attract new customers to the brand as we look to expand our global reach and further enhance our position in the market.’

Commenting on the new jobs, Des Thurlby, HR director at Jaguar Land Rover, said: ‘We have embarked on the most ambitious recruitment campaign in the company’s history, hiring 8,000 people in the last two years.’

JLR anticipates that the launch of the new Jaguar models will also support thousands of jobs in the UK supply chain.

As part of Jaguar Land Rover’s ambition to deliver 40 significant product actions over the next five years, the Castle Bromwich plant will this year manufacture the new 2013 model year XF and XJ ranges which - through the introduction of new powertrains and transmissions - offer customers greater efficiency, technology and choice than ever before.

The XF range will also see the addition of the XF Sportbrake derivative which, with a load capacity of up to 1,675 litres, promises to be the most versatile Jaguar built to date.

In the first six months of the year, Jaguar has sold more than 29,000 vehicles globally, which is a 19% increase against the same period last year. All of Jaguar’s key markets, including China, UK, USA and Europe, have delivered year-on-year sales improvements.

Ford’s huge European losses trigger operational review

FORD has launched a review of its European operations after forecasting that Ford of Europe, which includes the UK, will suffer losses exceeding $1 billion this year.

Near-record profits in North America and continued strong performance from Ford Credit helped the Ford Motor Company deliver its 12th consecutive quarterly pre-tax operating profit - but the performance was undermined by poor results in Europe.

The company reported a second quarter pre-tax operating profit of $1.8bn and net income of $1bn. The company also continued to generate positive automotive operating-related cash flow, and ended the period with a strong liquidity position of $33.9bn, an increase of $1bn during the quarter.

However, Ford of Europe reported a second quarter pre-tax profit loss of $404 million compared with a profit of $176m in the year ago quarter.

First half losses at Ford of Europe now amount to $553m compared with a profit in the first half of last year of $469m. As a result, the company has forecast that its European losses in 2012 will exceed $1bn.

In a statement Ford said the losses reflected unfavourable market factors. The statement said: ‘Volume was unfavourable due to lower industry, share and associated production adjustments to maintain dealer stocks at appropriate levels. Net pricing was lower as the industry responded to excess capacity with higher incentives. Higher contribution costs also contributed to the profit decline.

‘Given the deteriorating external environment in Europe, Ford now expects its full year loss in Europe to exceed $1bn. The magnitude of this loss will be affected by a number of factors, including the overall economic environment, competitive actions, and Ford’s response to these developments.’

 

The company said it recognised the seriousness of the situation in Europe, and viewed the challenges the industry faced as more structural than cyclical in nature.

The statement continued: ‘While Ford is affected significantly because of its strong presence in the region, the company understands what is needed to achieve profitability and to generate an appropriate return on investments.’

Bob Shanks, Ford executive vice president and chief financial officer, said: ‘We have faced challenging situations in other parts of the business before, and successfully addressed them. We will continue to use our plan as the guide to address challenges and opportunities in our valued European operations.

‘We are reviewing all areas of our business to address the near-term challenges, while ensuring we build a strong foundation for our future. It is premature to discuss details of what our plans may be in response to the situation in Europe.’

Honda top car reliability survey: Premium cars fail more often

HONDA is the most reliable used car brand in the UK for the seventh consecutive year, according to the annual survey by Warranty Direct and consumer magazine What Car?

Honda, which is about to launch a new version of its CR-V, has a reliability record of just a one in 10 chance of its cars suffering a breakdown in any given 12-month period. Toyota and Lexus are close behind in the league table with a failure rate of 17% and 18% respectively.

However, while Japanese makes once again dominate the top 10 most reliable manufacturers - Suzuki, Subaru, Mazda, Mitsubishi and Nissan all feature - the research, based on 50,000 Warranty Direct policies on cars between three and 10 years old, shows that many more expensive brands will actually let motorists down more often.

Premium marques Mercedes-Benz and Jaguar are languishing in the bottom 10 with failure rates of 45% and 43% respectively, with fellow executive maker Audi (42%) little better. Land Rover is the UK’s least reliable manufacturer, with 71% of cars breaking down at least once every year.

What Car? editor in chief, Chas Hallett, said: ‘Reliability is so important to motorists, especially when times are tough. Japanese car makers really do deliver on reliability and Honda is exceptionally good at this.

‘What will be surprising to many is the fact that several of the more desirable brands did not fare so well regarding reliability, and the cost of their repairs are high. They need to do better.’

Warranty Direct managing director Duncan McClure Fisher said: ‘Cars have become increasingly complex, with lots of gadgetry on board, especially on executive models, where buyers expect more and more bang for their buck. Owners of these cars pay over the odds for the premium badge, but our study shows they could also be paying over the odds just to keep the car on the road.

‘It’s a balancing act for used car buyers. You can get cars that break down less often, but have higher repair bills, or you can buy a car that won’t cost you much when it fails, such as a Renault, but lumbers you with more than a 50% chance of doing so. The one thing you do appear to be able to rely upon is buying Japanese.’

Axle and suspension woes are the most common fault reported by the UK’s motoring public, largely due to the perilous state of the nation’s roads, accounting for 28.56% of all breakdowns handled by Warranty Direct.

Electrical gremlins are the second most likely cause of an unwanted garage bill, with 24.3% of drivers reporting problems.

US brand Chevrolet is the only manufacturer from outside the Far East to break into the top 10. It also has the lowest average repair bill, £227, of the most reliable marques. Unsurprisingly, Porsche models are the most expensive to repair, with an average garage bill of £623.

Alfa winning battle against the three Rs

ALFA Romeo claims that it is winning the public perception battle against the three Rs - rust, reliability and residual values - and is re-inventing itself as a brand which is both sporty and green.

And the MiTo supermini is leading the way, according to the head of the company in the UK, Damien Dally.

The model has lowered the average age of Alfa buyers to less than 40, is attracting female customers turned off by previous Alfas and is bringing new buyers into the showrooms. More than seven out of 10 MiTo buyers are new to Alfa, and 45% of them are women.

‘We’ve tweaked our marketing message in titles aimed at the female market,’ said Dally, ‘and we are working with PPQ, one of the organisations behind London Fashion Week.

‘We are also working on tying the MiTo up with the music scene. One of our plans is to back a band and take it on the road with MiTo.’

The MiTo appeared in the Glass’s Guide top 10 for second hand values in 2011, and is exceeding CAP valuations. As a gesture of confidence in the car’s reliability, retail customers are being offered a five-year warranty until the end of September.

‘Alfa is still a car with emotional pull, but backed by a rational message,’ Dally told Headlineauto. ‘It has premium values and a premium image, but is still very niche. We sell 10,000 cars a year in the UK with a two-model line-up and when we launched the 8C Competizione at £140,000 a few years ago we were able to sell them all (500 were built) within minutes.’

Two new versions of the MiTo, powered by an 85 bhp two-cylinder petrol engine, will go on sale in the UK within days, priced from £14,150. With an emissions figure of 98 g/km they will fall into the 10% company car tax bracket and are eligible for 100% business capital allowance in the first year. 

Saab Parts UK launches new brokerage facility

SAAB Parts UK will launch a new national broker service for the pricing and placement of used Saab vehicles.

The brokerage facility for Saab trade enquiries will be administered by a dedicated and highly experienced Saab used car expert based at Saab Parts UK’s HQ in Cranfield.

Matt Bateman, used vehicle manager, will work directly with selling dealers to ensure they get the best and true valuation of the Saab they are part exchanging, matching the car to a buyer offering the highest price from the national network of 88 Saab Authorised Repairers.

 

UK Saab Broker works through instant access to known buyers and specialists of used Saabs across the country and can match vehicles to the right place for re-sale.

Dealer/trade customer disposing of a used Saab should contact UK Saab Broker on 01234 756880 or via email saab.broker@parts.

Corin Richards, managing director of Saab Parts UK, said: ‘Following the demise of Saab at the end of last year there has been some uncertainty in the trade in how to value a Saab, which has made part exchanges difficult.

‘This new service we are offering will remove any uncertainty that may remain in the Saab used car market, as we will provide a true market valuation to the Saab seller and find them an interested buyer from our national network of 88 service centres.

‘Our network of authorised repairers around the UK is always on the lookout for quality used Saabs and this new service will put buyers and sellers in touch with each other, thus ensuring that there is a consistent supply of Saabs on its forecourts available for customers to purchase.

‘This expansion of the Saab Parts UK business into used car operations demonstrates the UK business is evolving into more than just a parts company.’

Motor industry attracts £56m funding to drive low carbon future

UK vehicle manufacturers, and firms across the entire automotive supply chain, have successfully secured £56 million to fund the development of low and ultra-low carbon technologies that will keep industry at the forefront of the global low carbon agenda.

Public and private sector investment will lead to the development and demonstration of technologies to cut carbon emissions from road transport and accelerate the commercialisation of low carbon vehicles.

More than £27m of public funding, from the Office for Low Emission Vehicles and the Technology Strategy Board, together with £29m of private sector funding, will be invested in 17 major research and development projects. 

They will be led by major vehicle manufacturers including Ford, Jaguar, Land Rover and Nissan, however, a large number of small and medium-sized companies, including suppliers, will be closely involved in the development work.

“By working with industry to invest in innovative research and development we are putting the UK at the cutting edge of low carbon vehicle technology - delivering long term benefits for the economy and the environment,’ said Business and Enterprise Minister Mark Prisk.

The projects aim to boost UK capability by encouraging a reduction of costs in the supply base and a faster adoption of new technologies on UK roads, with a focus on pulling technology through the various stages of the innovation chain.

The projects include the development of a complete electric vehicle drive system that incorporates motor, controller and gearbox, cooling and connectors within a single cast plug and play package. The outputs will be low cost, with a range of power outputs, and suitable for integration across multiple OEM vehicle platforms. The project is being led by Ashwoods Automotive Ltd.

There is also the development of ground-breaking woven 3D reinforcement systems for automotive components, which is being led by Jaguar. Carbon dioxide emissions can be directly addressed by using lightweight, low inertia materials, such as aluminium matrix composites, which can combine the strength and stiffness of steels with the weight of aluminium.

Other companies involved in the projects include: Artemis Intelligent Power Ltd, Delta Motorsport Ltd, Ford Motor Company Ltd, GKN Structures, Land Rover, mi Technology Group Ltd, Nissan Motor Manufacturing UK Ltd, Nissan Technical Centre Europe, Prodrive Automotive Technology (Europe) Ltd, Ricardo UK Ltd, Turbo Power Systems and Wrightbus Ltd.

Light commercial vehicles______________________________________

Order books open for all-new Ford Transit Custom

THE all-new Ford Transit Custom, which is available to order now with deliveries due in November, is claimed to introduce a new level of load carrying ability to the one-tonne van segment with more space, more convenience and a range of innovative new loadspace features.

The Transit Custom’s new loadspace features were developed by Ford engineers following a special innovation project which captured feedback from customers about those needs that are not currently met by one-tonne vehicles.

The Transit Custom offers best-in-class load volume:

• Short wheelbase (SWB) model - 6.0m3 SAE (full bulkhead fitted)

• Long wheelbase (LWB) model - 6.8m3 SAE (full bulkhead fitted)

The SWB model is also the only vehicle in its class capable of transporting three Euro pallets with a one-metre high load, which is also not possible in the current SWB Transit.

The new Transit Custom also offers:

• Class-leading width between wheel arches of 1,390mm allowing wide loads to be easily loaded and stored

• Class-leading opening height and width of sliding side load doors (1,320 x 1,030mm) for ease of loading and unloading

• Storage of large standard 8ft x 4ft (2,440mm x 1,220mm) boards either vertically at the edge of the bulkhead or flat on the floor

The key loadspace innovations in the Transit Custom include:

• Load-through hatch in bulkhead which enables loads up to three metres in length, such as pipes or ladders to be carried inside a SWB Transit.  A hinged opening (596mm x 205mm) at the foot of the bulkhead allows long items to be placed along the floor of the van, and to extend into a secure loadspace underneath the dual passenger seat in the front cabin.  LWB models can accommodate loads up to 3.4m long.

• Deployable integrated roof rack system seamlessly integrated into the roof.  The system features three transverse roof bars which are located in recesses in the roof panel, and which can be deployed when required.  When not in use the cross bars can be folded down, reducing drag and fuel consumption. The roof rack is capable of carrying loads up to 130 kg.

• Locking check arms allow the rear cargo doors to be locked in place at 90 degrees open, to ensure that the doors cannot be blown around by gusts of wind or passing vehicles while the driver is loading or unloading items.

• Repositioned tie-down hooks and fixing points located on the body sides. By moving the multiple DIN and ISO compliant tie-downs onto the side wall, the floor is left clear of intrusions or recesses that can reduce usable load area or make complete cleaning of the floor nearly impossible,

• Easy-clean load floor liner offers enhanced durability and simple cleaning. 

• Ultra-bright LED loadspace lighting provides customers requiring brighter lighting within the load box, such as when using the cargo area as a working space, with significantly higher light output from four high-performance LED units

The model is powered by Ford’s 2.2 litre Duratorq TDCi engine with short and long wheelbase power outputs giving a choice of 100 PS, 125 PS and 155 PS units Average emissions for short wheelbase models are 178 g/km with combined cycle fuel economy of 42.2 mpg. Equivalent figures for long wheelbase models are 183 g/km and 40.9 mpg.

Range prices start at £17,495 (ex VAT) for the SWB 250 2.2 TDCi 100 PS low roof model.

Toyota to sell rebadged Peugeot and Citroën vans in new tie up

TOYOTA is to sell rebadged Peugeot Expert and Citroën Jumpy (Dispatch in the UK)

light commercial vehicles across Europe following the discontinuation of its Hiace model.

The arrangement, vehicle supply will commence mid-2013, follows the announcement of a new agreement between Toyota Motor Europe and PSA Peugeot Citroën. The two companies already have a small car collaboration.

The agreement also includes collaboration on next generation vehicles which are to be produced by PSA Peugeot Citroën.  The collaboration is expected to last beyond 2020.

Toyota Motor Europe will participate in the development and industrial investment costs for the next generation product. However, there are no plans for the two companies to enter into capital tie-ups or joint production.

‘The light commercial vehicle segment is an important one for us in many markets throughout Europe,’ said Toyota Motor Europe president and chief executive Didier Leroy.

‘By joining forces with PSA Peugeot Citroën, we have found a good solution for our loyal customers following the recent discontinuation of our own Hiace model. We already enjoy a successful joint-venture partnership with PSA Peugeot Citroën in the small car segment and they are a leader in the European light commercial vehicle market, with a solid reputation for quality and versatility.’

Fiat Ducato to transport Helphire Group forward

ACCIDENT assistance specialist Helphire Group has taken delivery of the first of 50 new Euro5-compliant Fiat Ducato-based transporters as part of its fleet replacement programme.

The first vehicle was scheduled to go into active service at the company’s Leicester depot this week.

The company, which has its head office in Bath, has specified 50 Fiat Ducato 33 B2B chassis 2.3 130 bhp MultiJet II Euro5 transporters built by UK industry experts KFS Special Vehicles Ltd. The vehicles will be supplied by Fiat Professional dealer, Guest Truck & Van Centre in Birmingham.

All the transporters - in metallic Aluminium Grey - will be used to transport the Group’s vehicles throughout the national network of over 20 branches and four operational contact centres across the UK.

 

The KFS converted Ducato-based transporters include aluminium deck and bearers, load tested loading ramps, recessed tie rings and a maximum payload capacity. In addition, all transporters will be equipped with options including metallic paint, dual passenger seat, extended wiring loom, uprated battery, normal size spare wheel and a Techno dash board.  

Tim Bailey, fleet services director, Helphire Group, said: ‘We ultimately chose the Fiat Ducato as the base for our replacement transporters as it delivered the best load weight without sacrificing power or driver comfort and at a cost that we found very workable.’

FTA launches mobile app to stay on track throughout the Olympics

 

THE Freight Transport Association has launched a new app to keep the logistics industry up to date and informed for this summer’s Olympic and Paralympic Games.

 

In preparation for the Games, which open tomorrow (Friday, July 27) the entire freight industry has been gearing itself up to ensure it has all the information it needs to keep running smoothly and the FTA’s free app will now deliver more information. 

 

The app includes the latest news, traffic updates, details of Games Lanes and Olympic and Paralympic Route Networks, information on delivery arrangements, a calendar of dates showing the expected congestion on each day of the Games, a list of venues, links to helpful sites including Transport for London (TfL) and London Organising Committee of the Olympic and Paralympic Games (LOCOG) and useful contact details.

 

The free app is compatible with iPhone and Android devices and can be downloaded from the App Store and Google Play.

Residual value update_________________________________________

Demand strong for executive cars as BCA sales top £231m

DEMAND remains strong for upper executive, sports and luxury cars says BCA, as buyers continue to support the company’s programme of Top Car and Executive sales.

In the first half of the year, BCA sold 8,356 cars valued in excess of £20,000, worth a combined £231.4 million.

Across the board BCA has averaged 102.57% of CAP ‘clean’ for cars sold for £20,000 or more in 2012.

The highest value vehicle sold this year to date - a Bentley Continental GTC W12 Supersports that realised £129,500 - achieved over 103.5% of CAP ‘clean’.

Top Car sales are staged regularly at BCA Blackbushe and Nottingham, with executive car sales taking place throughout the BCA network and 91% of cars valued £20,000 and over sell the first time they are offered.

BCA’s communications director Tony Gannon said: ‘Successfully remarketing luxury prestige and sports cars calls for a different approach than when dealing with ‘bread and butter’ fleet cars. Because of the additional activity required, it is worth consigning cars for sale early to give your remarketing partner time to get the message across to the buyers.’

He added ‘Few can afford to spend upwards of £20,000 on a whim, and with such specialist high value vehicles, the pre-sale marketing is critical. BCA uses both online and traditional media to attract the right mix of - specialised trade buyers and the all-important non-trade, typically small business owners or self-employed professional people, who want their own prestige ‘company car’ and can benefit from buying in an offset tax position.’

Gannon continued: ‘It is a peculiarity of the economic downturn that demand for high value cars has remained on a high over the past two years. Despite the difficult economic conditions, the market for high value prestige vehicles is exceptionally buoyant, with buyers prepared to invest six-figure sums for the right vehicle. It could be that some well-heeled buyers are simply deciding that their money might as well be put to good use on a prestige car rather than languishing in a savings account that is paying very little interest.’

Cars sold above £20,000 at BCA, 2012

|Price Band |Average Price |Average Age (years) |Average Mileage |Average vs CAP |Average number of sales |

| | | |(rounded) |Clean |entered |

|£20K – £29,999 |£24,020 |1.5 |17,317 |101.76% |1.2 |

|£30K – £39,999 |£33,796 |1.3 |12,049 |104.54% |1.1 |

|£40K – £49,999 |£43,401 |1.2 |11,081 |103.66% |1.1 |

|£50K – £59,999 |£54,203 |1.8 |14,791 |103.68% |1.1 |

|£60K – £69,999 |£63,941 |1.7 |8,945 |103.15% |1.1 |

|£70K – £79,999 |£74,238 |1.5 |6,779 |99.64% |1.0 |

|£80K – £89,999 |£82,455 |0.8 |5,294 |96.06% |1.2 |

|£90K – £99,999 |£92,167 |4.1 |5,917 |95.28% |1.7 |

|£100K – £109,999 |£103,400 |1.5 |5,785 |92.65% |1.5 |

|£110K + |£129,500 |1.0 |2,621 |103.52% |1.0 |

Trade buyers becoming more ‘choosy’ on vehicle selection

USED car trade buyers are becoming more ‘choosy’ about the vehicles they bid on and ultimately acquire, according to the Vehicle Remarketing Association (VRA).

The less desirable cars in the wrong colours are now proving very difficult to shift, so adjusting the reserve price accordingly may be the only way to sell them quickly, the organisation has warned.

Buyers are also increasingly looking to purchase cars that are ready to retail, which means more vendors are spending money on refurbishment before the vehicle is offered for sale.

The majority of cars are seeing a benefit in refurbishment with higher prices and first time conversion rates.

With the market entering ‘the mad’ summer of Olympics, demand for hire cars is likely to stay high across the summer with more visitors entering the UK.

Therefore fewer cars are being remarketed and are remaining on fleets sometimes for two to three years. Currently this works well for the industry, says the VRA, as there is a general shortage of two-year-old cars in the marketplace, so when such vehicles are defleeted, they tend to make good money.

Meanwhile, the traditional six-12 month nearly new used car market continues to be under severe pressure from the aggressive new car deals on offer by manufacturers and their dealers.

Consumers who are in the market to purchase a car are now looking at a new instead of a nearly new car and so prices have fallen and are likely to remain under pressure in the short term, says the VRA.

Generally, says the VRA, the used market enters the summer in a stable condition with book values for July only reducing by 1% whereas the last couple of years trade values have been marked down by up to 3%.

The market still shows signs of smaller cars being those with the best profit margins, as used car buyers continue to downsize their motoring requirements to benefit from reduced running costs.

Therefore, five door cars are now being widely sought after at the smaller end of the market due to their increased practicality and are now, for the first time says the VRA, commanding a price premium over three-door models with petrol the preferred engine option.

Politics and regulation_________________________________________

A14 tolling plan could set precedent for more road charging

THE Government has given the green light for plans to introduce tolling on an existing major dual carriageway - the A14 linking the Midlands to the busy East Anglian port of Felixstowe - prompting fears that could set a precedent for more road charging in the future. 

The major new £1.5 billion road scheme involving tolling on a 20-mile section of the A14 in Cambridgeshire will be added to the Department for Transport’s programme of major projects.

Subject to agreement with interested local authorities on a funding package and decisions at the next Government Spending Review construction work could begin by 2018.

The plans are designed to address congestion and long term capacity issues on and around the strategically crucial A14.

They include a new bypass to replace the existing road around Huntingdon and upgrades along the A14 as far east as Milton.

Two new roads would be built in parallel to, with one on each side of, the current A14 immediately north of Cambridge for local use. Meanwhile, the existing A14 carriageway will be upgraded through the removal of accesses and junctions, and improvements to junctions at the northern and southern ends.

Study work, says the Department, has confirmed that funding for these can be generated in part through tolling a length of the enhanced A14, featuring around 20 miles of new or widened road.

However, more work will be required to determine the best tolling solution, including what length the tolled section should be, how users would pay and what the tariff should be.

But, the Freight Transport Association said that while it welcomed the announcement it was concerned that by allowing tolling on existing roads - not just those which are new or enhanced - that such a decision could lead to further tolls being implemented on further routes.

Malcolm Bingham, FTA head of road network management policy, said: ‘FTA welcomed the previous announcement by the Prime Minister that he would look at private investment in our infrastructure, but we were clear that any additional costs imposed on the freight industry would be unacceptable.

‘FTA is worried that freight operators who have to use the A14 in order to get in and out of Felixstowe will be forced to pay this toll, which would be seen as an unavoidable tax if they are not offered a reasonable affordable alternative route to reach the Suffolk port.’

FTA said that it considered the tolling decision a significant policy shift by the Government, which had previously ruled out tolls except for new road schemes. 

Motorists tell Government to get tough on drink-driving

FOUR out of five motorists say drivers who repeatedly drink-drive should have their vehicles seized and sold or scrapped, according to a poll by the IAM (Institute of Advanced Motorists).

And half of those surveyed think that it should also happen to drivers several times over the limit.

The respondents were also behind reducing the drink-drive limit. A total of 66% want to see the limit reduced, with most of these saying it should be lowered to a maximum of 50mg of alcohol per 100ml of blood, down from 80mg of alcohol per 100ml of blood. Additionally, 28% think there should be a zero-tolerance policy.

The poll was conducted as Scotland and Northern Ireland are both consulting on reducing the drink-drive limit to 50mg of alcohol per 100ml of blood. 

People convicted of drink driving generally lose their licence for a year and receive an average fine of £240. But 57% think fines are too weak, and that punishments for drink-drivers should be tougher - 38% much tougher.  

Other findings include from an online poll on the IAM’s website which received 2,114 responses include:

• 55% of poll respondents support a proportionate, graduated system of penalties, if the limit was reduced. For example, lower penalties would be given to drivers caught under the current limit, but above the new one.

• Almost half of respondents admit to having a drink while driving, within the current limit.

• 79% say a decrease in the limit wouldn’t affect their enjoyment of an evening out but 19% said it would.

• 84% said a reduction in the limit wouldn’t change their plans to go out.

IAM chief executive Simon Best said: ‘The support is there for tougher treatment of drink-drivers.

‘Not only do the majority want a lower limit - they also want tougher punishment for those that break the law, especially the worst offenders who present the greatest danger to other road users, their passengers and themselves.  

‘Our poll shows a desire to see more effective drink-drive levels as well as much greater consistency of enforcement, prosecution, and sentencing, which reflects the level of danger associated with drinking drivers.’

VRA worried over DVLA proposals to avoid superstitious 13-plate

THE Drive and Vehicle Licensing Agency (DVLA) is proposing a registration plate alteration for superstitious motorists so they can avoid the new 13-plate next March, according to the Vehicle Remarketing Association (VRA)

The organisation says that the DVLA is proposing that motorists who buy a new car registered between March 1, 2013 and August 31, 2013 can choose to have it registered as a 62-plate, effectively keeping it the same as vehicles registered from September 1, 2012 to February 28, 2013, until it naturally reverts back to the regular plate pattern which will see the 63-registration appear on September 1, 2013.

The VRA says that ‘is great for those who regard the number 13 as unlucky but it could cause a challenge for the used car market’.

Those picking up on the anomaly will value the car correctly, but those who don’t may offer drivers considerably less for the car than it is worth just based on the registration plate, the VRA has warned.

Dealer news__________________________________________________

Dealer self-registrations inflate new car sales, says Vertu boss

NEW car sales in the UK are being inflated by ‘significant self-registration activity’ by dealers, according to one of the UK’s fastest growing vehicle retailers.

Paul Williams, chairman of Vertu Motors, told the company’s annual meeting that new retail car sales volumes grew on a like-for-like basis in the four months ending June 30 by 0.3% against an increase in UK private registrations of 10.1%. However, the Group had seen considerable growth in fleet and commercial volumes with a like-for-like increase of 12.2% in the four-month period compared to a market decline in registrations of 0.8%.

Society of Motor Manufacturers and Traders’ figures suggest that UK new car sales increased 2.7% in the first half of 2012 to 1,057,680 units.

However, Williams said: ‘The market is witnessing increased levels of self-registration by UK dealers which is inflating registration data compared to sales levels.’

He said that Vertu Motors continued to follow a policy of not engaging in significant self-registration activity.

Williams said that he believed the market fall in the four months under review in fleet and commercial vehicle registrations partly reflected what the board believed to be an increasing trend for self-registered vehicles to be classified as private rather than fleet registrations within the market.

During the four-month period to June 30 the company reported that it had traded ahead of the prior year with like-for-like profit growth in each of the key areas of new retail and used car sales, fleet and commercial sales and vehicle servicing. Total revenue during the period grew by 11.6%, within which like-for-like vehicle revenues grew by

5.1%.

Used vehicle sales volumes rose on a like-for-like basis by 6.7% in the four-month period compared to the prior year.

However, the company warned that supply constraints continued to characterise the used car market as customers traded down into smaller and cheaper cars, which were in short supply.

The company said it had responded to the trend by investing in additional used car buyers and improving the systems and processes which provide real time information utilised to control used car inventories.

Vertu Motors says it plans to further expand with ‘a strong pipeline of further acquisition opportunities’ on the agenda. The Group now operates 81 outlets comprising 78 franchised and three non-franchised sales outlets.

Looking ahead, the trading statement said: ‘The consumer environment remains challenging and volatile as macro-economic concerns continue. Market conditions in the wider European car market remain under intense pressure and this poses both

opportunities and threats to the stability of the sector in the UK.’

However, the statement concluded: ‘The board remains confident with the robustness of the core business and with the improving trading prospects of the acquisitions made in recent periods. The Group continues to trade in line with market expectations.’

Dealers ‘don’t know’ what recruitment is costing them

MORE than three out of four dealers questioned in research carried out for the launch of job Co-op Automotive don’t know what they are spending on recruitment, the organisation has claimed.

The newly-launched motor industry recruitment platform says it has spoken to more than 200 dealerships as part of the initial phase of its business and says the vast majority have no monitoring in place.

Derek Webb, director, said the problem was that, in most dealer groups, recruitment tended to be carried out on a localised basis.

He explained: ‘There are a few major dealer groups where there is a proper structure in place for recruitment and it works well for them.

‘However, it is much more common for dealers to operate at a site level and, even then the task itself is often delegated down the management structure. The amount they spend on ads and fees gets lost in day-to-day expenses while the considerable time they allocate to the task is rarely measured.

‘This means that there is effectively no monitoring in place of recruitment costs and if you ask the group financial director whether there is a recruitment budget or a total figure for spending, they more often than not have no real answer. They don’t know.’

Webb added that the lack of structure he found had been a surprise to even the experienced job Co-op Automotive recruitment team.

General motor industry news___________________________________

Commodity speculation blamed for new fuel price rise

A 10-WEEK slump in UK petrol prices has ended as commodity speculation rolled back a third of the recent fall in wholesale petrol costs, according to the AA.

Average petrol prices that had peaked at 142.48p a litre in mid-April bottomed out at 130.81p at the beginning of July before regaining more than 1p, according to this month’s fuel price report from the motoring organisation.

Petrol pump prices now average 132.18p a litre while diesel is at 137.26p. A month ago, petrol averaged 133.77p a litre and diesel 139.31p.

At the bottom of the price slump, UK drivers should have seen an average saving closer to 14p a litre rather than the actual 11.67p - in effect, short-changing them by a £1 a tank - claimed the AA.

From the middle to the end of June, the NW Europe wholesale price of petrol levelled at around the equivalent of 45p a litre, down at least 12p a litre from the peaks in late March and early April. VAT would have extended the fall by a further 2p.

NW Europe wholesale petrol prices, which had plummeted from above $1,220 a tonne in early April to around $920 in June, bounced back last week to $1,000.

Edmund King, AA president, said: ‘We have seen UK inflation for June fall very close to the Bank of England’s target. It makes you wonder how much closer it would have got had the full extent of lower fuel costs been passed on to drivers.

‘Additionally, after the massive boost lower pump prices have given to family budgets and non-fuel consumer spending, it would be extremely disappointing if much of the benefit is lost to commodity speculation.’

King added: ‘It was inevitable that pump prices would eventually rise again but, as has been the case so many times in recent years, the questions remain: should it be happening now and what is driving them up? Is it the fundamentals of supply and demand or speculation in the oil and wholesale fuel markets? Current evidence seems to suggest the latter.’

Halfords issues profits warning as chief exits

HALFORDS’ chief executive David Wild has stepped down from the company, which has issued a profits warning.

The retailer and vehicle servicing and repairer said revenues for the 13 weeks to June 29 were 5.2% down. However, the 7.8% drop in retail revenues was offset by a 14.5% rise in earnings at its national chain of autocentres.

With earnings from cycling and other leisure-related goods impacted by the ‘unseasonal weather conditions, Halfords said that given the uncertain trading environment it expected retail demand to remain below last year’s levels.

As a result, Halfords forecast that full year Group pre-tax profits would be in the £62-70 million range, which was below analysis forecasts.

Halfords has now started the search for a new chief executive and interim executive chairman Dennis Millard said: ‘The consumer environment remains difficult and the unseasonal weather conditions this quarter had a direct impact on sales of cycles and outdoor leisure products.

‘In this challenging economic environment the management team will be focused on maximising our trading performance and cash generation, prudent cost management and delivering the longer term strategy.’

People on the move____________________________________________

New managing director at Fiat Group UK

STEVE Zanlunghi will take over as managing director of Fiat Group Automobiles UK with effect from Wednesday (August 1).

Zanlunghi (39) replaces Andrew Humberstone who is leaving the UK after nearly five years in charge to pursue other interests within the Group.

Zanlunghi has most recently held the role of director, Chrysler Group Mid-Atlantic Regional Business Centre, with responsibility for all sales, marketing, network development, service and parts operations.

The Mid-Atlantic regional network included 275 Chrysler, Jeep, Dodge and Ram dealers, and 20 Fiat brand dealers in the states of New Jersey, Pennsylvania, Maryland, Delaware, Virginia, West Virginia and Washington DC.

Since relinquishing the post in May, Zanlunghi has been working in sales and commercial operations, Western Europe, Fiat SpA, Turin.

New operations director for dealer services at Manheim

THE world’s largest automotive services company, Manheim, has appointed Andy Coulthurst to the role of operations director - dealer services.

Coulthurst has more than 30 years’ experience of the car sales industry, joining UK Car Group as a 15-year-old parts assistant and leaving as sales director in 2007. He has spent the past four years as group sales director at JCT600.

Manheim, which recently acquired Motors.co.uk, is focused on creating further alignment across its dealer product portfolio in the UK. That is expected to provide customers with a complete automotive services solution that will improve vehicle values and increase retail used car sales and margins.

As operations director - dealer services, Coulthurst will work with dealers to drive performance through innovation and best practice. He will be based at the group’s retail headquarters in Adlington, Cheshire.

Other senior management changes include John Simpson, Manheim retail services managing director, becoming director of strategic projects reporting to Mike Pilkington in his newly formed role of chief strategy officer, UK and international, to help drive wider UK and international strategy for the Manheim Group.

Director promotions at Pendragon Contracts

PENDRAGON Contracts, the contract hire division of Europe’s largest motor group Pendragon Plc, has appointed two of its experienced senior executives into team leadership roles on the board to ensure the highest level of proactive, flexible customer service remains at the heart of its organisation.

Sean Consadine has been promoted into the new position of remarketing and logistics director, responsible for the end of life contract process for all vehicles and remarketing them through the dealership network and auction platform. He started his career at Vardy in 1998 as an apprentice administrator on the contract hire business, rising to disposals sales executive within Pendragon Contracts following the acquisition.

Marisa Fravolini has been appointed customer services director, leading the teams responsible for in-life non-operational issues including funding, customer quotations and vehicle delivery. Her extensive role will ensure the delivery of customer satisfaction is paramount, says the company.  She started her career at Ilkeston Co-op Motors before joining Jackson Leasing in 1988, moving to Derby two years later as administration supervisor.

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Published by AWD Communications Ltd info@

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This Week’s Briefing

Firms cut costs with extended contracts and longer leases

Demand strong for executive cars as BCA sales top £231m

Trade buyers becoming more ‘choosy’ on vehicle selection

A14 tolling plan could set road charging precedent

Motorists tell Government to get tough on drink-driving

Commodity speculation blamed for new fuel price rise

Dealer self-registrations inflate new car sales, says Vertu boss

The Editor’s View

SINCE April 2002 company car benefit-in-kind tax has been based on a vehicle’s list price and its official carbon dioxide emission figure. Over the years, despite a gradual tightening of tax bands, the Government’s tax take from company cars has reduced along with the number of company car drivers. Simultaneously, motor manufacturers have been producing ever lower emission cars to help meet European emission targets. For years, the Digest has highlighted that the drive to lower emissions and the Government’s desire to raise cash from company cars were on a collision course. Now, it seems as a result of measures announced in the spring Budget the Government has also realised that it needs to react to diminishing returns. Two weeks ago (Digest: July 12) the influential Government-appointed Committee on Climate Change weighed into the debate and this week the BVRLA has said that it is fighting back against the Government’s ‘tax attack’ - one for environmental reasons and the other for financial reasons. Ministers have to achieve a balance and they have yet to do that.

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