Manufacturers have been criticised for confusing X-plate customers with “a mixed bag of reductions, cashbacks and spec changes”. The Consumers' Association welcomed new Government rules which it said should lead to price cuts within a few months.
Small family-owned dealerships are better placed than large groups to react to market changes, said Ian Owen, managing director at Moss Pit Garage, Stafford. “We are playing the same game as larger groups, just not on the same scale,” said Mr Owen, whose business holds the Renault franchise.
Profits at Quicks Group have recovered now that major restructuring costs and other exceptional charges have been eliminated. In the first six months the company made £2.9m, up 64% from £1.8m year-on-year year. Turnover was down from £317.8m to £305.9m.
Rover franchising manager James Daulton has left under a voluntary redundancy scheme and will not be directly replaced. Regional directors Simon Gow (north) and Terry Hunt (south) assume day-to-day responsibility.
HR Owen has tightened its grip on the luxury car market in London by buying the Jack Barclay Rolls-Royce and Bentley franchise from Dutton Forshaw. The purchase price was not disclosed.
Pendragon has increased its investment in continental Europe by buying two more Jaguar dealerships in Germany. The company paid £2.42m last week for two Auto Konig sites in Munich taking its total number of Jaguar dealerships in Germany to five. The other operations are in Frankfurt and Wiesbaden.
Around 100 UK dealers - including several Lancaster Group outlets - are selling NavTrak telematics systems. The retail price of £450 (inc VAT) includes a gross margin of more than £150 to cover the cost of fitting that takes no more than two hours.
More than 140 franchised dealers are involved in the new internet service car-now.com targeted at small to medium businesses operating a fleet of up to 100 vehicles. It aims to cut the traditional buying process from two or three days to a matter of minutes.
The latest round of price cuts has opened up a clear gap between the carmakers who have taken a permanent stand on lower prices and those who are still making short term, tactical offers. The genuine price cutters, mainly at the prestige end of the market, have left themselves little or no margin for funding finance rates.
The news that Chartered Trust has been bought by Lloyds UDT marks the beginning of an exciting new period in our development. It means Chartered Trust, and our motor dealer customers, can look forward to the future with confidence as part of the Lloyds TSB Group, one of the UK's largest consumer finance providers.
Motor retailers believe only real price cuts from volume carmakers will finally release pent-up demand and make September a sales success. Dealers say a clear statement from Ford or Vauxhall is needed to convince customers prices have finally fallen.
Even the pressure of the September sales rush has failed to blunt the enthusiasm of dealer business managers lining up for a final chance to go to Las Vegas. An all-expenses paid trip to next year's NADA convention is top prize in the Award for Financial Excellence 2000.
Since the start of the year, City analysts have been expecting a steady rise in interest rates. Now there is a general feeling the pressure is off and rates may have peaked.
Honda's advertising campaign for the new Civic range will harness the internet-driven “viral” e-mail strategy used to promote its HR-V sports utility vehicle.
The US Justice Department is considering a criminal investigation into the recall of 6.5m Firestone tyres, many of them fitted to Ford Explorers. High speed blow-outs have been linked to 134 deaths in the US and Venezuela.
Trevor Finn has told Pendragon's shareholders to expect “significant consolidation of car dealership networks” leading to a market dominated by as few as three or four companies. The chief executive promised Pendragon would “build on its position and be the leading consolidator in the market”.
Trevor Finn has told Pendragon's shareholders to expect “significant consolidation of car dealership networks” leading to a market dominated by as few as three or four companies.
Vauxhall is set to introduce an extended service intervals programme across much of its car range by the end of the year, despite industry-wide opposition from franchised dealers.
Ford of Europe, which last month pledged rapid improvements at its London Dagenham plant following allegations of racism, has appointed a diversity director. Surinder Sharma was recruited from Littlewoods, the UK retailing and leisure business. He was equal opportunities head at BBC Television from 1990-95.
Jaguar has called on the Consumers' Association to produce evidence to support a damning survey finding on the “pricey” XJ saloon. A Which? press release, with the heading 'New Jaguars leave a quarter of owners stranded,' was challenged by the manufacturer.
Arriva has put its motor finance businesses up for sale as it continues its pull out of the automotive leasing and finance markets. The company said it was “in discussions” with other finance houses to sell Broadwood Finance and Arriva Finance Lease, which have loan books worth around £50m.
Lloyds TSB plans to keep its Lloyds UDT and Chartered Trust motor finance brands separate “for the foreseeable future”, despite looking for annual £25m savings from the newly combined businesses.
Ford's Focus and Puma are the two most popular models ordered through Virgin Cars which reports 1,500 orders in its first 16 weeks. The total value is put at £22m. Ian Lancaster, Virgin Cars chief executive, said the daily order rate had accelerated to 30 over the past six weeks.
New companies offering aggressively-priced cars online dominated the US National Automobile Dealers Association annual convention in January. Dealers who flocked to Orlando, Florida, heard how CarOrder.com, among others, would revolutionise car selling. But last month CarOrder.com, set up with £65m backing from a Texas software company, became a major casualty as its website closed.
Lookers believes it is starting to reap the benefit from investing £28m in its dealerships over the past 30 months. The group has announced increases of 6% in turnover and 11% in profits during the first six months of this year.
Motorpoint, the used car superstore operator, is reaching potential customers via web cafes in Granada motorway service stations.
Top Ford dealer bosses are putting pressure on the company to cut list prices in an unprecedented show of retail strength. They say the strategy of offering cashbacks on selected models is not attracting customers. One boss said: "We're dying in the showroom."
Findings from two major studies into consumer demands will be presented at Motor retailing 2005, Automotive Management's autumn conference.
New Mondeo is revealed to be a 'big brother' to Focus, adopting 'new edge' styling cues.
Ford's image has again been damaged by the latest developments in the investigation into alleged racism at its Dagenham engine plant in east London. The Commission for Racial Equality has put on hold its inquiry. Ford has given assurances it would comply with stringent conditions for improvements within a tight timetable.
