Ford and Volkswagen have announced price cuts on selected models in order to clear unsold stock and stimulate customer demand.
Finance industry experts are warning dealers to be cautious about long term lending which leaves customers with high depreciation and low equity. They say the trend to long term loans, combined with falling residual values, is forcing the market into an unnatural replacement cycle and fuelling the growing number of 'hand backs'.
Currie Motors has started to sell unofficial imports.
##Texaco Logo--left##Vauxhall has announced a £189m investment package in its Ellesmere Port and Luton plants, creating 500 new jobs. Nick Reilly, Vauxhall chairman, said the “UK continues to be a good place to manufacture, despite the high value of the pound”
##233Transit--left##Ford is working on new variations of the Transit, which went on UK sale in March, in anticipation of an explosion in internet shopping. Barry Gale, Transit project manager, believes the growth in e-commerce will create a need for a new type of delivery vehicle in urban areas that is better suited to domestic delivery operations.
New accounting methods for the leasing industry being proposed by the Accounting Standards Board could hit dealers' balance sheets and cost the industry £100m, according to some estimates. The accounting changes, which would abolish the difference between the balance sheet treatment of operating leases and finance leases, could come into effect by the end of next year. They would affect all corporate customers currently taking cars on contract hire and could lead to a wholesale rethink of fleet finance.
The finance industry funded more than 20,000 demonstrator cars in March. The figure, up from 13,366 cars in March 1999, reveals the true extent to which new car registration figures are being manipulated by carmakers and dealers.
Volkswagen has added the 90bhp TDI engine to its Caddy range from this month with a price premium of £890 over the 64bhp Caddy SDI putting the new engined variant at £9,220. VW claims the price compares well with its rivals - the Peugeot Partner HDI LX at £10,150 and the Citroen Berlingo HDI LX at £9,965.
The Phoenix Consortium has signed a deal with BMW to pay a 'symbolic' £10 for the acquisition of Rover Cars and the Longbridge plant, raising dealer hopes of a brighter future.
Lex Vehicle Leasing is investing in an extensive training programme to arm its staff with the necessary knowledge to match vans to customers' needs.
Virgin Cars chief executive officer Ian Lancaster hopes BBC Top Gear presenter Quentin Willson will represent the “voice of the consumer”, as Sir Richard Branson revealed the management structure of his internet car sales division. Willson, who has been a vociferous campaigner for lower car prices, has teamed up with Virgin Cars to “ensure that the interests of the consumer are ever present in our thinking”, said Mr Lancaster.
Jim O'Donnell will be handed the challenging task of raising BMW GB's faltering image when he becomes managing director next month. The carmaker has taken a battering in the press following the decision to offload its ailing Rover subsidiary and its registrations slumped by more than 38% last month.
Credit Acceptance, which has been trading in the UK sub-prime finance market since 1994, has extended the terms of its Private Vehicle Programme to enable customers to buy newer, better quality vehicles.
Glenvarigill Group, the Edinburgh-based motor retail subsidiary of the Drambuie liqueur company, has taken the Seat franchise in Aberdeen.
Europe's largest tyre safety blitz starts next month when retailers in the UK, Germany, Italy, Netherlands and Scandinavia draw attention to the importance of keeping tyres safe and legal.
The strength of the pound and rising competition from unofficial imports have persuaded Porsche Cars GB to cut prices to 1995 levels despite an order bank of 3,500.
Lex Autosales has poached marketing director Alistair Welham from leading rival Concept.
Anderson Cars, one of Scotland's leading motor groups with a turnover of £102m, has been forced to call in the receivers.
Lee Collins plans to expand the £37m turnover Prestons BMW and Hillendale Land Rover, in Colne, Lancs, after being appointed group managing director.
Mitsubishi importers across Europe have been told that they will not be amalgamated into the DaimlerChrysler operation.
Colt Car Company, the UK Mitsubishi importer, is to sell cars bought in Japan through its Red Zebra approved used car outlets.
##232Mackay--left##Inchcape Group has appointed Richard Mackay, former Chrysler Jeep Imports UK managing director, as the head of its Ferrari business from May. He assumes responsibility in the role of managing director for raising sales in the UK - now Ferrari's third largest market after the US and Germany - and will also oversee the Middle East and Belgium.
Kia Cars UK has teamed up with the Perry Group to launch a 'virtual showroom' network.
Quicks is opening a Jaguar dealership on a site shared with Ford.
Vauxhall has increased the size of its dealership network ready for a growth of light and medium commercial vehicle sales.
Manufacturers are failing to convince their dealers they should give their best service to owners of unofficial imports, judging by the new JD Power survey.
John Towers, head of the Phoenix Consortium, met Rover Group chairman and chief executive Werner Samann this week to table details of his bid in a meeting arranged after Trade and Industry Secretary Stephen Byers.
The publication of the Competition Commission report will change the vehicle distribution system in the UK.
The Competition Commission pricing report could signal the death knell for many small dealerships.
Fiat has called off its proposed mini-SUV project with Mitsubishi.
