Lex Service, the company that owns RAC, is assembling a new firm to offer drivers financial services as it strives to create a “cradle to grave” motoring solutions network. Working with the UK's third largest general insurer, AXA Insurance, the RAC is creating RAC Financial Services.
Sytner Group has fought off competition from rival dealers to take control of the flagship Toyota World showroom in Birmingham. The dealership becomes Sytner's first Toyota outlet, although parent company United Auto Group has a strong relationship with the carmaker in the US. Sytner is likely to take on more Toyota territories.
Inchcape has set up a deal to sell nearly new cars via the Barclaycard website as it looks to broaden its routes to market and source greater numbers of ex-fleet models. The deal has been established through Inchcape's online car sourcing operation Autobytel. It allows customers to view and order vehicles up to four years old online.
Fiat's creditors have rushed to the aid of the stricken Italian car giant by agreeing to support a £2bn emergency aid package amid fears the ailing carmaker could be sold. Its three main creditor banks - Banca di Roma SpA, IntesaBCI, Sanpaolo IMI - will loan £1.9bn, which can be converted in to equity through a capital increase if the carmaker fails to meet debt targets.
Mercedes-Benz will bypass its dealer network by using 'special agents' to sell the new Maybach range from its launch at the end of the year. The carmaker plans to appoint highly trained personal liaison officers to handle the new super limousine rather than use its established automotive retailers. They will be supported by a team of service specialists with a dozen engineers on national standby.
Mazda will not expand European production despite major cost savings generated by building the Demio replacement, to be badged Mazda 2, in Valencia, Spain, from early next year. According to Lewis Booth, who replaces Mark Fields as company president in July, Mazda superminis produced at Ford's Spanish plant will cost £800 less per unit to build than Japanese-sourced cars.
DaimlerChrysler UK has won a crucial victory in its fight on counterfeit and fake parts after settling a two-year High Court case against Wembley-based Euro Car Parts. The company, which turns over £50m a year from importing German, French and Scandinavian aftermarket parts, has agreed to pay DCUK £50,000 and stop selling Mercedes-Benz branded replica alloy wheels.
Alistair Darling has been handed responsibility for resuscitating the Government's crisis-stricken 10-year transport policy after replacing Stephen Byers as Transport Secretary. Byers, who featured at No 50 in the AM Power List resigned after a troubled 12 months as Transport Secretary.
Mitsubishi UK is planning a significant expansion of its retail network over the next 18 months in readiness for the introduction of its all-new supermini, known internally as the Z-car. Director of sales and marketing Paul Williams says Mitsubishi aims to increase the number of UK retail outlets from 132 to 140 by the end of this year, and to 150 by the end of 2003, just as the Z-car reaches the UK market.
Volkswagen Financial Services has launched a flexible PCP package to help its dealers fight back against direct lenders which are taking a growing slice of the finance market. Dealers in the Audi, VW, Seat and Skoda networks will use the New Solutions PCP to boost penetration levels for new car sales.
Michael Wilmshurst, a director of automotive trade consultant Troy Solutions, has been appointed chief executive officer of Nationwide Accident Repair Services, replacing Adrian Dunleavy who announced his resignation last month.
In an interview with <I>Global Auto Insider</I>, former head of Ford Premier Automotive Group Wolfgang Reitzle claims that Bob Lutz, General Motors vice chairman, offered him an opportunity to run the Opel and Saab divisions which would have led to him succeeding Lutz after 2004.
General Motors is considering selling Daewoo models alongside Vauxhall cars at its UK dealer network. A GM transfer team, due in the country within a month, will be assessing the opportunities for multi-franchising.
Organisers of the London Motor Show have unveiled a raft of incentives to persuade manufacturers to attend the 2003 event, including increasing dealers' involvement and broadening the show's appeal.
Bentley Motors is to launch a new parts and servicing scheme to capitalise on a market worth an estimated £325m a year. Through Crewe Genuine Parts the prestige carmaker will offer original equipment and servicing expertise for Crewe-built Bentley and Rolls-Royce cars through Bentley's 140-strong authorised dealer network.
The Department for Environment, Food and Rural Affairs (DEFRA) is assessing a report on used parts which concludes that there is significant potential to raise the penetration of recycled parts use in the aftermarket. Consultancy Environmental Resources Management (ERM) found that the biggest barrier to repairers using recycled parts was the lack of professionalism among dismantlers.
MG Rover is changing the name of its parts business, which has an estimated turnover of about £250m, from MG Rover parts to Xpart in a bid to drive business forward.In addition to the name change, the firm has appointed John Parkinson, the former MG Rover sales and marketing director, as Xpart's new managing director.
The Scottish Motor Dealers Buying Group (SMDBG), set up 18 months ago to enable operators to buy services in bulk, is in talks with retailers in England as it looks to build up volume. The group, founded by Paul Barnett, managing director of Dundee-based Barnetts Motor Group, has 18 members in Scotland.
Alliance Automotive UK has bought refinish distributors ATS and ATS Roadfox for an undisclosed sum. Alliance, which already owns the Factoring Services Group (FSG), has acquired the total shareholding for both companies.
The Dick Lovett Group is to take on the Ferrari and Maserati franchises for south Wales and the west of England. Once local authorities give the green light to blueprints for developments, dealerships will be set up in Cardiff and Bristol.
Ford is planning to have 10 Direct supersites in the UK by the end of next year, which will handle the majority of its used car sales for models under two years old. Peoples has opened the first site, a £3m venture in Prescot, near Liverpool. It expects the business to turn over £15m-£17m in its first year, selling about 1550 used Fords.
In a major U-turn, the RAC is now backing government plans to introduce congestion charges on busy roads as “a key element” to avoid future gridlock. The RAC has previously campaigned vigorously against any further taxes on motorists, but its latest report - Motoring towards 2050 - concedes “some form of road charging will be required on approximately 10 per cent of the road network to stop congestion getting worse.”
LSUK, the automotive parts and service supplier which holds the lighting maintenance contract for the Queen's Golden Jubilee ceremonial coach, has been awarded the Royal Warrant. The Sheffield-based operation has long been associated with Royal supply through is parent company Lucas Automotive, which had maintained Royal carriage lighting for decades.
Honda is recalling more than 50,000 vehicles in the UK to fix an ignition switch fault - but dealers will have to wait months for the parts they need to fix the problem.
Volkswagen specialist van centres are each investing around £500 towards set-up costs for the company's recently-launched used van programme. VW says 40 centres from the 90-strong network have signed up, with 10 more expected to follow suit within the next couple of months. They were chosen on size, facilities and location.
Dealers are putting their businesses on the line by signing “crazy” buyback deals, according to one of the UK's largest dealer groups. Camden Motors is warning that automotive retailers stand to lose hundreds of thousands of pounds on the short-term arrangements because the margin for error is tiny.
The Peugeot family intends to allow its stake in the PSA Group to grow to more than 50 per cent, although this is likely to take 10 years to achieve. It currently holds 26.46 per cent of capital.
Bodyshops and garages with courtesy car fleets have been given an unexpected lift by new tax-busting measures available on small carbon dioxide efficient models. An unpublicised section of Chancellor of the Exchequer Gordon Brown's Budget in April revealed that companies purchasing cars with CO2 emissions of not more than 120g/km will be able to offset the full cost of the vehicle in the first year against profits.
Zurich Insurance has dropped a mandatory requirement for its 260 approved repairers to be members of the Motor Vehicle Repairers Association after the trade body lost its association status. At roadshow meetings detailing its new work contract, the insurer told bodyshops it intends to use the MVRA to monitor standards across the approved network but they would no longer be required to pay £1500 for membership of the trade body.
The long expected slowdown in retail activity has happened - no surprise with the World Cup and Jubilee holidays in a traditionally quiet period. The response from some has been to bolt down the hatches, cut advertising budgets, refuse to purchase fresh stock and look for other ways to cut spending.
