DaimlerChrysler is tightening its grip over Mitsubishi Motors, in which it holds a 37 per cent stake, with the appointment of German Gunter Butschek to manage the NedCar plant in Holland. Butschek, a rising Daimler-Chrysler star who has run the company's South African operation, takes over as chief executive and president of NedCar next month, subject to anticipated approval by the Dutch firm's works council.
Ford has decided its forthcoming Focus-based multi-activity vehicle will be available with a five-seat configuration only after extensive customer research showed there was no market for a seven-seat variant.
Shell Auto Finance, the venture launched less than a year ago by Shell Capital, is being put on ice. The firm told the 400 dealers selling its vehicle finance on June 7 that it would stop writing new business immediately.
The theme of the spring conference, “dealers are dead”, is a recurrent one. Each time it reappears, the rumours of demise are found to be premature - with some reservations. So it is this time. Dealers must emulate successful retailers in other sectors, make good use of technology, work to retain customers and stop giving away profit opportunities. Carmakers are not well suited to retailing and no-one can see a “category killer” way of shifting metal waiting in the wings for the right moment.
Cars are the glamour side of the automotive retail business. Even among the commodity brands, a new car launch is usually backed by a glitzy, high profile ad campaign on prime time TV and in quality publications. Cars look good, feel good. But with slim margins they don't always make a lot of money.
The motor industry has never been so competitive. Not only are car prices falling, but also dealers are now facing the threat of new entrants such as supermarkets and virtual retailers in the market place. Indeed, in a recent survey of industry experts by consultancy firm Accenture, traditional dealers' profits are predicted to drop by as much as 40% by the year 2010.
The UK's first biodegradable organic spill system is being offered to garages and workshops through Unipart Group of Companies' distributors Partco Autoparts and Brown Brothers. UGC says its Taskmaster Iso18 offers a cleaner, safer and quicker alternative to standard granules, holding 14 times more liquid and absorbing spills three times quicker than traditional clay.
Guinness Peat Group has been steadily increasing its share in the Ryland Group over the past two months, sparking speculation that it is preparing a takeover bid. The venture capitalist now has a 29.9 per cent stake in the £642m turnover dealer group, which is at No 12 in the AM100.
Caffyns has posted record turnover in the year to March 31 of £160m, up £20m on the previous 12 months.
The John Clark Motor Group, ranked 60th in this year's AM100, has opened a Skoda dealership in Aberdeen.
Korean automotive components maker Mando Corporation has thrown its hat into the ring to challenge Bosch and Delphi for OE and aftermarket supremacy. The company, which operates three plants and employs 3200 people in its home country, clocking up brake, steering, airbag and suspension system sales worth £0.63bn last year, is reported to be going all out for global growth.
A new car supermarket has opened a £11m 10-acre site in the Midlands and is drawing up plans to launch five more outlets in the UK. Available Cars says it wants to change the way people buy vehicles and says its new operation near Castle Donnington will eventually create 90 new jobs.
Peter Horbury, the new head of design at Ford's Premier Automotive Group, wants to share design ideas across the operation, but recognises the need for brand individuality. He says his role involves “bringing people together to stay apart”.
NGK spark plugs will be exclusively fitted as original equipment on petrol versions of the new Volkswagen Phaeton.
Components and parts maker Visteon has won two major supply awards from Toyota Europe Manufacturing.
Researchers have developed a process to recover up to 40 per cent of previously unusable automotive shredder residue (ASR) - the waste from end-of-life vehicle (ELV) disposal. The breakthrough could save carmakers millions in recycling costs, and help reduce pollution.
A leading consumer watchdog is calling on Renault to improve communication with its sales and servicing network after dealers refused to recognise a fault with the manufacturers cars.
DuPont Automotive has won the Ford Motor Company Excellence Award.
Record market share is threatening to leave Audi's retail network with a major shortfall in staffing. Only weeks after celebrating showroom success that has made it the fastest-growing premium brand in Britain, Audi UK has launched a nationwide search for up to 500 extra sales staff and technicians.
Eurekar, the internet-based car importer, wants to set up a series of strategic partnerships with automotive retailers after cutting its ties with Jamjar.com, the online car retailing venture established by Direct Line and Dixon Motors. It says it aims to get back to its roots and work with dealers as a car-importing partner.
The US car parts manufacturer which was named General Motors' worldwide supplier of the year 2002 has declined to comment on speculation that its European facilities are under threat after announcing the closure of one of its Scandinavian plants. Michigan based Collins & Aikman Corporation confirms it is to shut its operation in Hogsater, Sweden - which makes NVH components for Volvo and Jaguar cars.
Seat's current Toledo saloon is a top value, high quality alternative to the Audi A4, Skoda Octavia and VW Bora. It's an ex-fleet choice that appeals to buyers looking for both quality and enjoyable driving, but who don't want to spend too much.<
Fiat Auto chief executive Giancarlo Boschetti is confident his tough restructuring plan will return the company to profit within two years, after breaking even in 2003. The “back to basics” strategy will focus on improving product quality, raising sales and service quality at the dealer network - including rebalancing away from the unprofitable rental/contract hire business towards retail and top end fleet - and boosting residual values.
Inchcape has secured the Mercedes-Benz market area for Oxford, Stratford, Coventry and Banbury, a region that accounts for 2000 new and used car sales a year.
Regency Finance & Insurance Services, the motor insurance scheme provider, has acquired Essex-based Principal Services.
The AA has purchased Tyreserve
Volkswagen AG has revised its electronic repair and servicing information guide to improve access for independent garages. The move pre-empts block exemption reform due in September which is expected to open up the market to sub-contracted independents and require carmakers to make all technical information available.
Independent Factors Association branches will be sourcing new clutches exclusively from Sachs Boge as part of a three-year supply agreement worth about £30 million at retail prices. The contract was sealed less than a year into a three-year single supplier contract with the IFA for shock absorbers.
The Mercedes CLK and BMW 3-series coupe are far rarer than the saloons on which they're based, but they still attract a high level of interest from buyers. Cars with leather trim, climate control and metallic are most sought after.
