All articles by Jo Tacon
Jo Tacon
Non-prime player shuts its doors to new business
Park Motor Finance closed its doors to new business as of August 26, and Dr Roger Gewolb, former CEO of Park, has left the company. The decision to stop lending was taken in light of the continued poor conditions in the credit markets and uncertain economic times, said Maureen Coen, head of European conduit finance at Credit Suisse, which provided backing for the non-prime motor finance specialist.
VED clarification will boost car sales, says NFDA
VED clarification will boost car sales, says NFDA In reaction to a 6.1 per cent slump in sales figures for June 2008 compared to the same month last year, Sue Robinson, director of the RMI National Franchised Dealers Association (NFDA) stated that government clarification on Vehicle Excise Duty (VED) changes for the coming year could significantly boost consumer confidence Uncertainty over the rising cost of motoring, along with higher overall living costs, have made consumers more cautious about buying a new car,” said Robinson, putting Junes sales total of 209,190 down to customers difficulty in predicting tax implications as a factor alongside rising fuel costs, economic and environmental concerns in deciding whether to buy cars
Transatlantic fleet deal with insurer
Transatlantic fleet deal with insurer A deal in the US with Zurich Group has brought benefits on this side of the Atlantic for LeasePlan, as the two companies have signed a deal which will see the lessor provide 2,800 vehicles for the insurance giants employees in the UK.
Retailer buys into Russia
Retailer buys into Russia International car retail group Inchcape plc has announced that it has bought a controlling stake in top ten Russian retailer, Musa Motors. Its 75.1 per cent stake in Musa cost Inchcape an initial $200m (£100.3m), with a potential additional consideration based on Musas performance in 2008 Musa concentrates its activities on the premium segment, operating 16 franchised retail centres in and around Moscow for BMW, MINI, Jaguar, Land Rover, Volvo, Chrysler, Jeep, Dodge, Rolls-Royce and Renault, with a Rolls-Royce showroom in St Petersburg.
Minister refuses to comment on road pricing strategy
Asked yesterday at the Fleet Business Show in London whether a national road pricing strategy was back on the agenda, Fitzpatrick mentioned the London Congestion Charge and the local trials taking place in Manchester and Cambridge, but when pressed on the matter, said only: “There is nothing further to say on that.”
Used car market to stay tough throughout 2008
Data company Experians used car sales figures for 2007 show a 2.4 per cent decline year-on-year in volumes – the largest annual drop since 2005 Moreover, it warned, used car dealers should not expect a better business climate in 2008 Consumer sentiment remains cautious, Experian said
The hidden costs of ownership
The hidden costs of ownership Last month in these pages we brought you a profile of LCV rental specialist Northgate, which is making a tidy business out of providing companies with all the benefits of having a van, with almost one of the downsides This month, our cover story looks at the car club phenomenon, which promises to do the same for private vehicle owners, giving them most of the benefits of ownership, without the associated headaches
Adapting terms to fit with customer needs
However, of late it has seemed that fleet contract terms are fragmenting, with anecdotal evidence that more and more customers are looking to extend the leases on their current vehicles on an ad-hoc basis to reflect uncertainty over staffing levels, while some customers – impressed by recent advances in passenger car technology – are looking to set longer contract terms from the outset
Car retail misery leads to job losses
Car retail misery leads to job losses The UK’s largest car retailer Pendragon has announced that it is to cut 500 jobs, as a response to “difficult and competitive trading conditions”. Despite the ominous news in its pre-closing statement, Pendragon confirmed that it remained “profitable and cash generative”, with sales volumes remaining “robust relative to the market”, with aftersales continuing to perform “well”.
Fuel costs drive falling mileages
Fuel costs drive falling mileages The most recent quarterly Company Car Trends survey by GE Capital Solutions, Fleet Services has found that the annual mileage driven by users of company cars is falling – but that take-up rates of employer-provided car schemes are rising. In all, nearly three-quarters (72.4 per cent) of fleet decision makers surveyed by GE Fleet said they expected demand for company cars to rise in the next 12 months.