Industry News
Week Commencing 27th March 2006
31st March 2006
30th March 2006
29th March 2006
28th March 2006
27th March 2006
Monza Noise Dispute Resolved
A dispute over noise levels at the Monza race circuit in Italy has been resolved but at the cost of many of the race meeting originally scheduled at the circuit for 2006.
In November 2005 a Milan court approved an order prohibiting the circuits use unless noise levels were reduced but a meeting between Michele Faglia, the mayor of Monza, and a number of residents of the town Biassono, which lies adjacent to the circuit reached an out of court settlement.
The Italian Gazzetta dello Sport newspaper reported that Faglia, the operators of the Monza and residents "agreed on two points: to study an action plan that applied to events with high acoustic impact, and to mitigate acoustic pollution with noise-absorbing barriers built by specialized companies."
The number of race meetings scheduled to take place at Monza has been drastically reduced. The Formula One Italian Grand Prix on September 10 now seems likely to go ahead but the Monza round of the Le Mans Series sportscar racing championship that was due to take place on September 24 has been cancelled. A statement from the Le Mans Series organisers said, "Ecologists have got the better of Monza and, as a result, the Italian round of the Le Mans Series. A Tribunal Order has ordered the circuit to skim its calendar, starting with the noisiest competitions."
Opposition to Prodrive Plan
Plans by the UK motorsport and automotive development company Prodrive to build a Formula One-standard factory on a former RAF airfield site in Warwickshire, have run into opposition from a local campaign who have raised concerns about the impact of the new development on the environment.
Quoted in the Kenilworth Weekly News newspaper local resident Sonya Mills said, "We are generally in favour of promoting and improving the area; boosting the economy and providing jobs. But there are detrimental effects, and we decided to form a group to make people aware of the wider implications."
"There is a wooded area within Prodrive that houses muntjac deer and barn owls. In fact, a study conducted for Prodrive showed the existence of bats, badgers and great crested newts - all of which are protected.
"The construction will also involve significant felling of trees, which provide a natural habitat for the wildlife. It seems ridiculous that this could appear in the middle of the countryside."
Lex business ‘a bonus’
Many dealers either ignore or pay lip service to fleets and leasing firms, blaming low profitability levels for their lack of interest. But the UK’s largest contract hire supplier believes that outlook is misplaced: fleet sales can help dealers hit their bonus, while the aftersales business is highly profitably.
Lex Vehicle Leasing introduced a new customer service index in 2004 after consultation with some of its 1,000 One-Call dealers. Its aim was to guarantee a consistent level of service throughout the UK for its customers, with key performance indicators covering areas such as collection/delivery, courtesy cars and valeting.
Two years on and LVL’s CSI results have leap to 75-80%. Its next step is an incentives scheme to be introduced over the next year. “We want to motivate dealers and get them to share best practice,” says Paul Kerrigan, LVL aftersales manager.
LVL is keen to work more closely with the dealer suppliers and organizes regional meetings to hear their views and perspectives about the relationship. With the CSI programme, the company has a clear network benchmark, which enables it to dispense positive feedback to retailers.
Source: AM Online
EU, U.S. seek meeting on China tariffs on auto parts
The European Union has asked the World Trade Organization for a consultation with China regarding a Chinese auto parts tariff that European automakers say violates the rule against local content requirements. The United States also is requesting a consultation with China on the issue. The consultation is the first stage in dispute resolution. The disputed tariff levies the same tax on certain combinations of imported parts as on a complete automobile.
The complaint was lodged at the urging of the Cars 21 group, which includes automotive industry executives, politicians and trade union officials. Hardest hit by the tax are producers of luxury cars in China such as BMW and Mercedes-Benz, which tend to have a hard time finding local suppliers for their models due to smaller volumes. Thus, they import more parts.
The regulation, which went into effect April 1, 2005, redefines what is considered a complete car. Now if certain combinations of parts -- for example an engine and a vehicle body -- are imported, the parts will be taxed at the completely built-up car rate of 30 percent.
Source: Automotive News
Policyholders kept waiting for repair estimates
The lack of consistent, auditable and transparent processes for identifying the pre-accident value of written-off vehicles is prolonging an atmosphere of conflict between insurers and policyholders. EurotaxGlass’s says this is resulting in increased customer churn and rising total loss settlement costs.
It is vital the person actually settling the claim has all the information necessary to produce a correct valuation, and that this can be quickly and easily presented to the policyholder in a clear and understandable form. This would also then fulfil the insurer’s responsibility of ‘fair treatment’ to the policyholder, in accordance with the regulations laid down by the Financial Services Authority.”
Source ABP
NCC delays super-complaint on car servicing & repair
According to the NCC (National Consumer Council) every motorist pays £150 a year over the odds for their car servicing and repairs. In a challenge to the industry the NCC will encourage the industry to clean up its poor reputation.
NCC chairman Lord Whitty has written to DTI ministers to set out a timetable and put forward an NCC plan of action to end the practices that cost car-owners dearly. The NCC route map will lead to higher standards and ensure that wherever consumers live they can easily find a garage that does a good job at a fair price. NCC’s plan of action gives the trade a deadline of September 2007 to put its house in order, including getting Office of Fair Trading (OFT) approval for a code of practice and continued investment in raising skill levels in the workforce.
Source ABP
A buoyant start hindered by ‘dead’ inventory
The RMI’s Society of Motor Auctions (SMA) reports that members have seen a buoyant start to the year, but warns there is a polarisation in the market and the spectre of ageing unsold stock remains a critical factor. With greater defleet volumes expected through April and the post-Easter period, and no guarantee that retail demand will hold up, the SMA is advising vendors to expect even more competition at remarketing time.
SMA director Alistair Manson commented: ‘Some sellers remain unrealistic when setting reserves. Yet many corporate sellers automatically set reserve values at 100 per cent or more of ‘clean’ guide values, without taking any consideration of the vehicle itself. This only serves to underline the lost art of vehicle valuation.’
To help avoid incurring these costs, the SMA has drawn up a set of recommendations for vendors, including vehicle appraisal, preparation and realistic valuation.
Source: Newspress
Fleet Safety Association re-launched
RoadSafe backs the leading players in the driver risk management and fleet driver training industries who have re-launched the Fleet Safety Association.
The association will vigorously promote the need for employers to adopt effective risk management programmes for those who drive for work purposes, which in turn will assist those organisations with their duty of care compliance. The association will also offer prospective customers the reassurance that its members will adhere to agreed quality standards and supply them accurate, consistent guidance in the discharge of their duties for them.
The Fleet Safety Association intends to issue regular communications through its media service and will also benefit from regular coverage within the widely-distributed ‘Roadsafe’ magazine.
Source: Newspress
Budget "will not curb sales of cars with high emissions" - EurotaxGlass's
According to EurotaxGlass’s, Chancellor Gordon Brown’s plan to introduce a new higher rate of Vehicle Excise Duty (VED) for the most polluting new cars will have a negligible impact on vehicle sales. For any car falling within the proposed new top VED band, the tax payable will increase by just £40 per annum, or a mere £3.33 per month – an inconsequential sum compared to the higher fuel and purchase price associated with such a vehicles. Eliminating the £55 annual VED on low emission vehicles will also have little effect since those vehicles are already considerably more expensive than conventional alternatives.
A more likely consequence is that the budget policy will reinforce negative social attitudes towards higher polluting cars such as SUVs. Prices of one year old prestige SUVs are typically 7% lower this March than they were in March 2005, an average fall of around £2500. However, experts say that residuals are unlikely to fall further and will continue to command higher prices than other prestige motors.
Source: EurotaxGlass’s
Strong start to year for European luxury and city car sales
The European new car market has begun the year with accelerating sales. There was a 3% upturn in registrations at the beginning of 2006 with Luxury and City/Utility car sales benefiting the most. JATO Dynamics' analysis of definitive registration data for Western and Eastern Europe shows that product-led growth lifted Luxury car sales by 72% and City car sales by 29% in January 2006, compared with January 2005. The new Mercedes-Benz S-Class, with registrations up 200% compared January 2005, headed a rise of 2,223 units in the Luxury segment, to 5,313 units.
City Car segment sales rose 18,124 to 80,437 units, helped by sales of around 6,000 each for the Citroën C1, Peugeot 107 and Toyota Aygo as well as an 8.8% sales increase for the segment leader, Fiat's Panda, compared with the previous January.
Overall, most market segments enjoyed sales increases in January, averaging 6%, but a 9.3% fall in registrations of Lower Medium segment cars (a decline of more than 25,000 units) was primarily responsible for holding overall market growth to 2.7%.
Source: JATO
New manufacturing plant signals GKN’s continued growth in China
The new business - GKN Zhongyuan Cylinder Liner Company Limited (GKNZ) - is a joint venture between GKN, which holds 59% of the company and Henan Zhongyuan Engine Fittings Stock Company Limited which holds 41%.
Construction of the green field facility began in April 2005 and early production trials were underway by the end of the year. At its full capacity, which is due on stream by the end of 2006, the site will produce 3 million cylinder liners per annum for the domestic Chinese and export truck markets and will employ in the region of 700 people. By this time, the two partners will have jointly invested some £16.3 million in the facility, which incorporates full foundry and machining operations.
Mr Walter Rohregger, Managing Director of the newly established GKN China office in Shanghai, said: “GKN has been operating successfully in China for 17 years and we currently employ 2,000 people across our wholly owned businesses and joint ventures. By the end of the decade we expect our continued expansion to double our China workforce to more than 4,000.”
Source: GKN
CAP trade watch: the myth about diesel vehicles
The growth in popularity of diesel may have been driven by tax advantages for company car drivers, but its appeal has now become much broader. This opened up new profit opportunities to used car dealers, who found they were able to charge significant premiums for diesel cars in comparison with petrol.
Retail customers considered the benefits of increased fuel economy sufficient justification for the additional front-end cost. Generally this is justified – provided the buyer is holding onto the car long enough to make the original price premium back in fuel cost savings. However, not all customers are mathematically precise in their calculations of future benefit versus current outlay.
This is revealed by the latest survey of independent used car retail dealers for the CAP Used Car Performance Index. This indicates that diesel has now seeped into the public consciousness as a guarantee of day-to-day cash saving, even against the evidence. According to the survey, dealers are able to charge £702 more for a diesel supermini compared with a petrol variant, identical in every other respect.
Given the small likelihood of the customer gaining anything like £700-worth of fuel economy benefit during a typical ownership period for such an already economical vehicle, this makes little practical sense. Therefore, it seems the benefits of diesel are beginning to take on mythical proportions among some sections of the public. Given that the trade premium for diesel, in the supermini sector, ranges between £200 and £400, it seems the public love affair with diesel can generate much needed additional profit on retail deals.
Source: AM
Lear plans restructure of European unit
Auto parts maker Lear Corp. has announced that it secured $800 million in new loans and that it will contribute its European interior products business to a venture backed by billionaire financier Wilbur Ross, sending shares up 12 percent. The company, which will receive a 34 percent equity stake in the joint venture with Ross, also suspended its quarterly cash dividend in a widely expected move as it tries to weather difficult conditions in the automotive parts sector.
Lear and many large U.S. parts makers have struggled under exposure to the difficulties of U.S. automakers General Motors and Ford Motor in North America, as well as higher raw material costs. The Southfield, Michigan-based company said it has received commitments from four of its largest global lenders -- JPMorgan Chase Bank, Bank of America, Citibank and Deutsche Bank -- to provide an aggregate $800 million in secured term loans. The loans will mature no earlier than March 2012 and are expected to be made on market terms.
Also, Lear approved an agreement in principle to contribute almost all of its European interior products operations to International Automotive Components Group (IAC), its joint venture with WL Ross & Co. and Franklin Mutual Advisers.
Source: Reuters
Fleets must act on Scots smoking ban
Last Saturday was a moment in history as it was the last time fleet drivers could light up in their vehicles without breaking the law. From Sunday, a ban was introduced which outlawed smoking in public places. Although company cars and private cars used on business have escaped the policy, taxis and vans have not been so lucky.
The ban doesn’t just apply to fleets based north of the border, as any vehicle crossing into Scotland will need to comply with the law in future. As a result, parcel delivery fleets, rental firms and taxi fleets which think they might be entering Scotland have to take action.
At a recent Scottish regional meeting of Acfo, the fleet managers’ association, members heard that fleet departments will be enforcing the legislation. The meeting heard that Scottish Executive has sent out packs with information and stickers to help companies comply and educate drivers. Some companies have introduced an outright ban on smoking in all vehicles, while others have allowed car drivers to continue unaffected – for the moment.
FLEETS in England and Wales will be watching the spread of smoking bans closely to see how they might be affected in future. With bans affecting company vehicles already in place in Ireland and Scotland, the industry knows it is only a matter of time.
Source: FNN
Fleet operators feel let down by dealers - survey
Managers running the UK’s company car fleets feel let down by franchised dealers. Sewells’ annual survey of fleet operators, now in its eighth year, first noted this disenchantment with dealer networks in 2003. Since then there has been a continuing fall in satisfaction.
This year the latest Sewells’ Fleet Operator Attitude Survey collected data from fleet managers as the basis for analysis of dealer networks. Fleet managers were asked detailed satisfaction questions about every aspect of their relationship with franchised dealers. The results showed that fleet managers most valued the support which dealers give to their company car users after the vehicle delivery. Aftersales service was a crucial consideration affecting overall satisfaction with franchised dealers. Fleet managers attached much less importance to traditional dealer strengths in sales, such as acquisition advice and product knowledge.
Now that new car retail sales have been in decline for the past three years, the fleet market has become more important than ever. Indeed some industry observers even suggest that the sector could already be taking over 60% of the total new car market. If dealers fail to live up to expectations fleet operators may be forced to look for other ways to support their vehicle fleets.
Source: AM
Healey with Swedish ancestry
Healey took another step towards production with the announcement that a platform has been sourced for the new car. HFI Automotive, the firm behind the new Healey, is looking at reworking the advanced steel spaceframe chassis that a group of Volvo technicians started developing back in the Nineties.
The chassis was used by another Swedish company, called Josse Car, to manufacturer the Indigo, a retro-looking two-seater. With styling inspired by the original Healey 100/4, this machine first made its debut towards the end of the last decade. Dressed with a tough but lightweight composite body, these two-seat, rear-wheel-drive machines could sprint from 0-60mph in around 6.5 seconds, and go on to a maximum speed of 155mph.
Tim Fenna, HFI's managing director, said: "The platform for the new 3000 is derived from the Indigo. This vehicle's design and layout were heavily influenced by the Healey sports cars of the Fifties and Sixties, and the platform supports a modern in-line six-cylinder engine driving the rear wheels, plus fully independent suspension, and meets Europe's strict safety requirements."
Due to the amount of early interest, the company has already thrown open its order books as part of the celebrations marking the 50th anniversary of Donald Healey's successful land speed record bid - when he hit 203mph at the Bonneville salt flats in Utah, US, in a modified 100/4.
Source: AutoExpress
New plant to make Rovers
Nanjing Automobile has begun construction of a plant to produce MG Rover cars, as part of its plan to revive the brand, it has emerged. The company said in a statement that total investment in the project, based in Nanjing province in China will be £200 million. The plant is expected to make 200,000 cars and 250,000 engines every year, the company said.
Nanjing added that most of MG Rover's machinery and equipment in the UK had already been shipped to China and production was scheduled to start next year. It paid £53 million for MG Rover in July last year, acquiring its assembly lines, engine technology and many of the firm's models.
Meanwhile it has emerged the company is planning to start selling two MG models in the UK and Spain within the next 18 months.
"Nanjing has chosen the UK and Spain because they were the biggest markets for MG Rover in the past," said Alfonso Saavedra, managing director of Sino Motors.
Mr Saavedra said Nanjing also planned to launch a Golf-sized saloon that will be called the MG 5 and is due to be launched in late 2007.
Source: Birmingham Post
Cars accelerate as emissions slow down
The total amount of carbon emitted by cars in the UK in 2003 was the same as in 1993, despite a 25 per cent increase in the number of cars on the road. In 1993, there were 24 million cars on the road in the UK emitting 19.8 million tonnes of carbon. In 2003 the number of cars had grown to 30 million, yet the total amount of carbon was the same.
In a statement Christopher Macgowan, SMMT chief executive, said:
'There are 850,000 people working in the UK motor industry and we are all concerned about the impact our industry has on the environment. We recognise that we are part of the problem and also the solution. This is why we have invested so heavily in research and development of new technologies that have helped us to create cleaner vehicles.'
In 1997, 77 per cent of new cars would have been in the top three vehicle excise duty bands: vehicles emitting more than 166 g/km of CO2. In just eight years, that figure has nearly halved to 41 per cent. In the lowest three bands, there are now four and a half times more new cars: 34.1 per cent, up from 7.8 per cent in 1997.
Source: SMMT
Tragic Start to IRL Ethanol Era
The integration of alternative fuel into the American Indy Racing League series got off to tragic start with the death of Paul Dana, whose car was backed by Team Ethanol, a group of companies involved in the ethanol production in the USA, following in accident in the warm-up practice session for the opening round of the 2006 IRL series in Florida on Sunday.
Dana, whose car collided with another that had crashed moments earlier in a separate incident, was flown to hospital by helicopter but was pronounced dead approximately two hours later.
David Vander Griend, president and CEO of ICM, one of the Team Ethanol group of companies said, “Paul was a very special guy. He demonstrated his belief in what ethanol can do for all of America through his racing. He helped us with so many things in bringing ethanol to the IndyCar Series. He will be missed tremendously. Our thoughts are with his family today.”
UK drivers ‘blissfully ignorant’ about greener cars, says Honda
A survey from Honda UK questioned 1,200 British drivers on their attitudes towards the environment and their understanding of alternative fuel vehicles. More than 40% didn't know that a hybrid vehicle was a car that uses both petrol and electric power. The research also asked people to name a type of alternative fuel vehicle and 82% failed to mention the petrol-electric hybrid car.
The research shows British drivers are more likely to be motivated by money rather than by environmental responsibility. When the 73% who said they were unlikely to buy a hybrid were asked what would make them consider one, the top factor (43%) was ‘if I was sure running costs would be lower’ followed by ‘if petrol became too expensive’ (34%). This substantiates the number one reason for rejecting a hybrid: ‘too expensive’ (34%).
When asked who should be responsible for encouraging better take up of greener vehicles, 70% suggested the Government or car manufacturers (35% each). Less than a fifth (17%) of drivers saw it as their own responsibility to lessen the environmental impact of their vehicles.
Source: Honda
Fleets: mixed reaction to green budget
There has been mixed reaction amongst fleet operators to last week’s budget as it seemed to target drivers of 4x4s. The UK motoring manufacturing industry has warned that the changes to VED send a worrying message to car buyers and manufacturers about the future of motoring taxes.
Chancellor Gordon Brown announced a special rate of Vehicle Excise Duty of £210 annually for the most polluting vehicles. The widely-anticipated move represents an increase of £45 on the previous top band and is widely viewed as a Government move to punish drivers of ‘gas-guzzlers’. Brown also cut the tax rate to zero for cars emitting less than 100g/km of CO2 but only all-electric vehicles meet this level. It is estimated that changes to VED rates will give the Government a net revenue gain of £3.8 million from fleet buyers in 2006.
Christopher Macgowan, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said: ‘Stability, certainty and long-term must be the watchwords when changing sensitive tax instruments. None appears to have been applied here.’
Fleet managers’ organisation Acfo broadly welcomed the move for its environmental merits. In a statement, it said: ‘The reform of Vehicle Excise Duty, which penalises high CO2-emitting vehicles and rewards people driving more environmentally-friendly vehicles, seems sensible and rational in light of concerns over the level of CO2 emissions.’
‘The Government has consistently spoken about introducing road charging on a national basis. The changes in VED announced last week could amount to the first moves towards the eventual phasing out of VED as a tax, and its replacement by pay-as-you-go motoring.’
One vehicle leasing and fleet management company has raised concerns that high-emitting CO2 vehicles may suffer a downturn in the used car market as a result of the changes to road tax.
Terry Bartlett, managing director of Inchcape Fleet Solutions, said: ‘Vehicles subjected to the highest rate of VED may prove less popular than presently in the used car community. Consequently residual values will fall and monthly rental rates will, therefore, increase.’
(Source: FNN)
Industry drives forward service and repair code; NCC delays threat of 'super complaint'
The RMIF and SMMT today welcomed news that the National Consumer Council (NCC) has delayed a ‘super complaint’ against the motor industry to the OFT, and have issued a news release confirming a joint commitment to helping drive forward better standards for car servicing and repair.
The threat of a super complaint followed concerns about poor consumer protection across the service and repair sector. The NCC had set a deadline of 31 March for the industry to prove it was united in taking action to improve the consumer experience, but will now re-assess the situation in September 2007, after confirming yesterday that “the industry is starting to show some signs of turning the corner”. The NCC, which is Government-funded but independently organised, said any decision will be made after further dialogue, DTI input and progress with industry self-regulation.
The NCC decision to delay action follows progress under the guidance of the DTI Retail Motor Strategy Group towards developing an industry consumer code under the OFT Consumer Codes Approval Scheme, open to all businesses in the retail motor sector, whether independent garages or franchise dealers. The SMMT/RMIF-supported code is intended to supplement the work others have done recently to promote better service standards, including BSI’s PAS 80 Kitemark which is already available to all in the sector.
“Our sector is united in its commitment to drive up standards in service and repair”, said SMMT chief executive Christopher Macgowan. “But we need to be clear that the threat of a super complaint is still very real. We have worked hard to convince the NCC that we are serious about raising our game and we must continue to develop the tools to do the job – with absolute urgency.”
“The motorist sees us as one industry and their best interest has to be at the heart of everything we do. One code for the industry which they can rely upon is therefore vital for building consumer confidence,” said Matthew Carrington, Retail Motor Industry Federation chief executive. “The RMIF’s objective is to have a single code, run and monitored independently.”
Some of the key elements the code must include to gain full OFT stage two approval are: Technician skills, customer information, audit trails, mystery shopping and complaints and disciplinary procedures – which are included in the PAS 80 PAS 80 Kitemark scheme.
GEM partners with Matra to launch EVs in France
Global Electric Motorcars, LLC, (GEM) a US electric car subsidiary of DaimlerChrysler based in Fargo, North Dakota, is forming a partnership with Matra Manufacturing and Services to market GEM’s battery-electric ‘neighbourhood’-type vehicles in France.
Matra MS will operate as the exclusive distributor of GEM vehicles in the French market, and the two are establishing, in Romorantin, a European manufacturing and services platform for GEM vehicles. Over 30,000 GEM vehicles have so far been produced and distributed across the US and internationally.
(www.gemcar.com)
Budget ‘fails to tackle diesel environmental question’ – GE Commercial Finance
Gordon Brown's Budget provided a high degree of stability for the company car market but failed to answer underlying concerns about environmental problems caused by diesel engines, according to GE Commercial Finance, Fleet Services.
Rich Green, managing director, said: "We welcome the Budget in the sense that it continues to provide a stable backdrop against which the fleet industry operates, with no shock moves by the Chancellor. The changes in VED rates and the new 10 per cent benefit in kind rate for lower polluting company cars both underline the Government's continuing commitment towards more environmentally friendly company motoring, although these changes have largely been at the extremes of the market and will have relatively little impact, we believe, on the types of vehicles chosen by the vast majority of company car drivers and offered by their employers."
However, Mr Green goes on to say that question marks over the effects of diesel emissions on air quality should be prompting a growing sense of unease about the way in which Government policy is encouraging more and more drivers into diesel cars, which now account for abouttwo thirds of all UK fleet sales.
"There are serious concerns being raised about diesel particulate emissions, as reflected in the latest EC Euro 5 emissions proposals from Brussels which should come into effect in 2008 and will heavily penalise diesels. The question we and the Government should be asking is whether the continuing fleet trend towards diesel should be encouraged?"
Mr Green added: “Although the CO2 output of diesel engines is often lower than equivalent petrol models, there is convincing evidence that their overall environmental impact is much worse due to particulates and other emissions. Even following the imposition of the Euro 5 proposals, there will be a strong argument that petrol is environmentally friendlier.
"What we, as an industry, do not want to see is a sudden sea change in benefit in kind taxation at some point in the future against diesel powered company cars. It is our feeling that some kind of shift in policy is probably inevitable, and even desirable, but we'd like to see a period of gradual change.
"Hybrid and bi-fuel technology is available now but the Government needs to provide genuine incentives for fleets and company car drivers to adopt these technologies in the long term if they are serious about making environmental progress in this sector."
- Headline changes in the Euro 5 proposals include:
- 80% reduction in particulates and 20% reduction in nitrogen oxide over Euro 4 for diesel cars
- 25% reduction in nitrogen oxide and hydrocarbons for petrol cars
- Cars weighing more than 2,500kg - including 4x4s - to be included in limits
- Engines must still pass emissions tests at 100,000 miles.
JATO reports strong start to 2006 European luxury and city/utility car sales
Luxury and city/utility car sales benefited most from the 3% upturn in European new car registrations in January 2006, indicates JATO Dynamics' analysis of registrations data for Western and Eastern Europe. shows that product-led growth lifted luxury car sales by 72% y-o-y and city car sales by 29% y-o-y in January 2006.
The new Mercedes-Benz S-Class, with registrations up 200% compared to January 2005, headed a rise of 2,223 units in the European luxury segment, to 5,313 units.
City car segment sales rose 18,124 to 80,437 units, helped by sales of around 6,000 each for the Czech-built Citroën C1, Peugeot 107 and Toyota Aygo, as well as an 8.8% sales y-o-y increase for the segment leader, Fiat's Panda.
Overall, most market segments enjoyed sales increases in January, averaging 6%, but a 9.3% fall in registrations of lower medium segment cars (a decline of more than 25,000 units after strong sales of newly launched models in 2005) was primarily responsible for holding overall market growth to 2.7%.
Although the growth in SUV sales was less spectacular than in previous months, registrations still grew by 4.0% with the new Mercedes-Benz M-Class (up 147%) leading the Hyundai Tucson (up 44%) and new Suzuki Vitara/Grand Vitara/XL-7 (up 41%).
JATO says there was no respite from the decline in the sports segment volumes, with volumes down by 19.3% year-on-year.
Strong sales of its Passat, Fox, Golf Plus and Jetta saw Volkswagen start 2006 as Western Europe's top-selling car brand, ahead of Ford (up 3.0%), Renault, Opel/Vauxhal, and Peugeot. Fiat saw sales increase by 22.9% due to strong sales of the new Grande Punto. Outside the top 10, Seat achieved a 21.0% increase thanks to the new Leon, and improved sales of Altea. Suzuki's performance was even more impressive, with the new Swift and Grand Vitara leading a 44.6% rise in sales. Saab sales rose by 27.5%. Other manufacturers posting double-digit percentage rises
included Audi, BMW, Skoda, Mazda, Kia and Land Rover.
(www.jato.com)
Plastics in Automotive Electronics and Electrical Systems conference to discuss ELV issues
The ELV challenges for OEMs and electrical/electronic components suppliers will be explored at EPN’s Plastics in Automotive Electronics and Electrical Systems conference in Stuttgart in May by representatives from three major European OEMs, reports Plastics & Rubber Weekly.
Honda Motor Europe manager of ELV treatment policy Julien van Damme and BMW recycling strategy engineer Steffen Aumann will discuss how electrical and electronic items fit into the ELV framework and how component design may be able to ease the recycling burden. Volvo manager of mechanical architecture, verification and CAE Erik Söderbaum will present the results of a study it has performed of the recycling of cables and cable harnesses, while Fraunhofer Institute quality manager Dr Thomas Ahrens will look at the impact of the move away from lead on the polymer materials and manufacturing processes in use today.
EPN’s Plastics in Automotive Electronics & Electrical Systems conference takes place in Stuttgart on 16-17 May. Full programme details can be found at www.epnautoelectronics.com.
(www.prw.com, 27 March)
RMIF condemns Warranty Direct survey of car repair labour charges
The latest survey of repair invoices by the Warranty Direct company, apparently showing that a third of garages charged for more time to carry out repairs than is indicated in manufacturers’ repair data, was condemned as inaccurate yesterday by the Retail Motor Industry Federation.
“We condemn any garage that overcharges its customers - however, this survey is misleading and does no favours for the consumer or the retail motor industry,” said Matthew Carrington, chief executive of the RMIF. “There are quotes for 136 repairs on different vehicles, which total 387 hours of repair time. On close inspection, the total level of perceived overcharging is 12.5% above the manufacturers' official repair times. This result hardly calls for sensationalist reporting.”
Carrington added: “In many cases, a manufacturer's repair time is only a guideline, and may not allow sufficient time for fault diagnosis, or for the repair to be carried out. Furthermore, older vehicles with higher mileage will invariably require a longer repair time.”
Carrington ended: “As an insurance intermediary within the automotive market - and therefore an active player within the motor industry - shouldn't Warranty Direct be encouraging confidence in the service and repair sector, rather than continuing to scaremonger consumers with risible statistics?”
Hyundai Motor agrees to build €800-€1 billion assembly plant in Czech Republic
In what will be one of the biggest European automotive inward investments in recent years and the largest-ever single foreign investment in the Czech Republic, Hyundai Motor announced yesterday that it planned to invest up to €1 billion in its first EU assembly plant near Ostrava, about 200 miles east of Prague, which would create 3,000 new jobs directly and around 10,000 more in suppliers and service companies.
Hyundai subsidiary Kia Motors announced plans for assembly in Slovakia ahead of the larger Hyundai, which also operates an assembly plant in Turkey. Under the deal, the Czech government will build a new road between Hyundai’s intended base at Nosovice and the border near the Slovakian town of Zilina, where the Hyundai subsidiary Kia is building an assembly plant.
The agreement reached with the Czech trade ministry still needs approval by Hyundai's board and the Czech government, both of which are expected by mid-May, according to Milan Urban, the Czech trade minister, who said yesterday that his government would grant Hyundai 4.3 billion koruny ($180 million), in direct state support, and up to another 1.3 billion in possible tax holidays for up to 10 years. Even larger investment subsidies could be granted if Hyundai’s investment eventually exceeded €1 billion. Any subsidies will be subject to EU state subsidy rules, which in the case of the automotive sector, are to undergo review, according to an EC announcement last year.
- Meanwhile, in Seoul, news agencies have reported that prosecutors yesterday detained and sought an arrest warrant for Lee Ju-eun, the CEO of Hyundai Motor’s logistics subsidiary Glovis, in pursuit of their inquiry into allegations that Glovis was involved in paying bribes to ease the way to approval of Hyundai’s takeover of Kia. A raid on Glovis’ office saw documents seized and a business intermediary arrested.
DCS Group plc reports bid approach
The AIM-listed, Leamington Spa-based DCS IT systems business, now purely automotive in its focus following disposals over the past few years, has reported the interest of a bidder for the company’s shares.
In January, DCS Group announced that Auto Data Network Inc.'s interest in DCS Automotive (Holdings) Ltd had been reduced from 33% to 18%, following the completion of a £2.5 million capitalisation issue into that subsidiary by DCS. This transaction followed the disposal of DCS' transport and logistics division and accompanying debt to equity conversion announced in September 2005.
(www.dcsgroup.co.uk, www.autowired.co.uk)
GUS plc to split Experian from Argos Retail Group
GUS plc, the retail and business services group, today announced the next steps in its plans for the separation of its two remaining businesses, Argos Retail Group (ARG) and Experian, the credit information group that supplies data and vehicle history services to several automotive businesses in the UK and overseas.
The Board of GUS proposes, subject to shareholder approval, that the two businesses should be separated by means of a demerger, with both ARG and Experian becoming independently listed on the London Stock Exchange. This is expected to take place in six to twelve months time.
It is also planned, subject to market conditions, that at the time of the demerger Experian will issue new shares listed on the London Stock Exchange to a combination of existing GUS shareholders and new investors. GUS currently estimates that the issue of new Experian shares will comprise approximately 10-15% of Experian’s ordinary share capital.
Each company will continue to be led by its existing management team. At Experian, the chairman will be John Peace, the CEO Don Robert and the Finance Director Paul Brooks. The non-executive directors of Experian will include Sir Alan Rudge and David Tyler.
Automotive Academy welcomes further education White Paper
The Automotive Academy has welcomed the Government’s White Paper on further education published yesterday, outlining a range of measures which the Academy says must be adopted quickly.
The White Paper sets out plans for:
- A new entitlement for free tuition for learners aged 19-25 studying for their first Level 3 qualifications (two ‘A’ Levels or equivalent)
- New Adult Learning Grants to provide a weekly maintenance allowance for learners on low incomes studying for Level 2 or Level 3 qualifications
- Trials of a new learner accounts programme at Level 3
- Raising the quality of teaching and training by creating a Quality Improvement Strategy including mandatory CPD training for staff
- Giving employers greater say in the provision of education and training, by expanding work-based training to meet employers’ needs
- A new Learner Accounts programme for adults on technician, skilled trade and associate professional qualifications, subsidising the cost of courses.
The DfES White Paper, 'Further Education: raising Skills, Improving Life Chances' can be accessed at www.dfes.gov.uk/furthereducation
Delphi submits revised pay and benefits plan to UAW - reports
Neither Delphi Corp. nor the UAW has yet confirmed any details in response to reports by newswires that Delphi submitted on 24 March new proposals for wage and benefit cuts to the United Auto Workers union in the hope of reaching an agreement ahead of its 31 March deadline for applying to the bankruptcy court to have existing agreements set aside.
The Detroit News of 27 March said had called for gradually cutting wages to about $16 per hour from some $27 per hour now, probably subject to financial assistance from pre-spin-off parent GM. Early on in its bankruptcy administration, Delphi proposed cutting wages by two-thirds to $9.50 per hour, then withdrew the proposal and later commenced tripartite negotiations with the UAW and GM, which have so far led to the early retirement plan announced by GM last week.
AIAG opens new Shanghai office
The US-based Automotive Industry Action Group (AIAG), a non-profit automotive trade association, plans to support the automotive supply chain in China with the opening of a representative office in Shanghai and the appointment of Dr. Yilong Chen, AIAG's general director of Asia-Pacific affairs and chief representative in China, to head it up.
LDV expects 50% sales growth in 2006
Tony Lewis, sales director at LDV Group, the British van manufacturer recently bought out of administration by the US-based Sun Capital, says he expects a 50% increase in sales this year of the firm’s Maxus van, which was launched in 2005. February LDV registrations rose 123% y-o-y, and it big orders have been won from corporate, rental and leasing fleets including Royal Mail, Wiseman Dairies, Europcar, TLS, Northgate, Arriva and the MoD.
‘Significant’ export orders for the new Maxus van have been won from Malaysia, Denmark and Turkey. The latter netted an initial £2 order. Sales director Tony Lewis is quietly confident of more export business as the Maxus model expands.
(SMMT CV Newsbrief, 27 March)
ACEA reports February rise in European van, truck and bus registrations
There were 179,343 CV registrations in February this year in Europe, as reported by European manufacturers’ association, the ACEA. The total was 8,737 units or 5.12% up on the figure for February 2005. Within the total, vehicles under 3.5 tonnes were up nearly 6.0%, while registrations of trucks over 3.5t, and of buses and coaches, dropped slightly.
EU Member States agree on European Driving Licence
The European Council of Ministers reached a political agreement yesterday on a European Commission proposal from 2003 regarding a European driving licence. To facilitate the free movement of EU drivers and prevent fraud when driving licences are used as identification documents, a single model in credit card format will replace the more than 110 different types of licence currently in circulation.
The new licence is expected to ensure improved road safety through better definitions of the scope of application of the different driving licence categories. It provides for the introduction of a licence for mopeds and establishes the principle of progressive access to more powerful motorcycles. Direct access to the larger bikes will only be possible from the age of 24 after a theoretical and practical test; riders who want to ride the most powerful motorcycles before that age will need to gain two years’ experience on lighter machines.
Member States will cooperate to prevent temporarily banned drivers from obtaining a new driving licence in another Member State. An EU wide-network for data-exchange of driving licenses needs to be established for this purpose.
A single new driving licence model in credit card format with reinforced security features will be introduced, while the 110 different models still in circulation will be gradually phased out. After the entry into force of the directive, Member States will have 26 years to replace the existing driving licences. Specific provisions have been agreed upon to ensure that every existing entitlement to drive a specific vehicle will continue to benefit from mutual recognition.
The new directive will leave Member States free to introduce a microchip or not on the new model. Whatever option they choose, Member States must respect EU data protection rules.
The new rules foresee a 10-year validity period for licenses, which Member States may raise to 15 years. Member States are free to organise medical examinations at the time of administrative renewal.
The formal adoption of the Directive by the European Parliament will be effective later this year in a second reading, so the Directive will come into force by the end of 2006 and therefore be applicable at the latest at the end of 2012.
European road charging regime finalised by Council of Ministers
The EU Council of Ministers approved the European Parliament’s amendments on the Eurovignette Directive and thus finalised the new European road charging regime yesterday. The new Directive will enter into force following its publication in the Official Journal.
This legislation will encourage Member States to introduce and develop tolls and charges which will make it possible to improve the management of commercial freight traffic, reduce pollution and generate funds for investment in new transport infrastructure.
The text amends the 1999 “Eurovignette” Directive, which provided a legal framework for tolls and user charges on Europe’s motorways. The new road charging Directive lays down rules for tolls or user charges on the trans-European network, whereas the existing Directive limited tolls and charges to motorways. It allows Member States to levy tolls and user charges on all other roads as well. The Directive applies to vehicles over 3.5 tonnes, rather than only to vehicles over 12 tonnes as at present.
The new Directive represents the first step towards taking account of external costs: it will allow a greater variation in tolls to reflect congestion, and toll variations to reflect the pollution caused by vehicles will be mandatory from 2010. It also makes provision for Member States to be able to increase tolls with a “mark-up” on roads in particularly sensitive mountainous regions. The income from these mark–ups must be used to fund alternative transport infrastructure.
The new Directive also establishes the principles for calculating tolls and limits frequent user discounts, to ensure that they are fair, proportionate, transparent and non-discriminatory. These improvements are intended reduce obstacles to the free movement of goods and guarantee fair competition between road haulage operators.
EU Member States will be required to incorporate the Directive into national law within two years.
Credential buys Tyre Collection Services
Credential Environmental Ltd’s automotive waste management business has acquired the Wednesbury-based Tyre Collection Services, adding to the Automotive Waste Solutions and Waste Tyre Solutions businesses it already owned. The acquisition brings Credential’s turnover to around £16.5m, reports Tyres & Accessories magazine.
Credential Automotive collects waste materials from over 1,000 sites on a scheduled basis and advises on the disposal and handling of sensitive or contaminated waste streams. Last year it was awarded the Motor Trader Environment Award.
- Under the Government's Business Resource Efficiency and Waste (BREW) programme which recycles revenue generated through increases in Landfill Tax, Defra has announced funding for several waste management pilot studies, including one seeking to establish an evidence base to show the potential of remanufacturing goods. Remanufacturing of automotive components is the subject of a new report from the Society of Motor Manufacturers and Traders.
May 5th is likely to be deadline for digital tachographs - SMMT
The Society of Motor Manufacturers and Traders advises through its CV Newsbrief e-newsletter of 27 March that digital tachographs are likely to be a legal necessity for ‘in scope’ vehicles from 5 May. The European Parliament is set to publish the relevant section of the Working Time Directive in its Official Journal of 15 April, which will trigger a 20-day process to make digital tachographs a legal requirement for commercial vehicles over 3.5 tonnes, by 5 May, after which date suppliers will be unable to register vehicles without the equipment.
Robin Dickeson, manager, commercial vehicle affairs at the SMMT, added, “It will be illegal to drive a vehicle with a ‘digitach’ unless you have a smart card. If you or your drivers haven’t got yours yet, you need to get a move on.”
Smart digital tachograph cards can be acquired via www.vosa.gov.uk.
Corruption investigators seize files from Hyundai Motor
Investigators from the South Korean Prosecutor General’s office seized files from South Korea’s largest vehicle manufacturer Hyundai yesterday, according to a report from the South Korean Yonhap news agency. The search was part of an investigation into a business lobbyist arrested on 24 March for allegedly bribing politicians and officials while negotiating mergers and acquisitions; the documents seized yesterday are thought to relate to the merger of Hyundai Motor and Kia Motors in 1998. An investigator told Yonhap the accused had been paid large sums by a Hyundai Motor subsidiary called Glovis to lobby in favour of the Hyundai and Kia merger.
Work Foundation: re-employed ex-MG Rover workers earn average £3,500 less
According to a Work Foundation survey carried out for BBC Radio 4, which is running a series on Longbridge post-MG Rover from today, on average, those in direct employment are now earning more than £3,500 less a year than they were with Rover. But those now self-employed are earning more than before, the same research found; on average, those working for themselves now have an annual income nearly £5,950 higher than they did at Rover.
According to the final report of the government-backed MG Rover Task Force launched to help former MG Rover workers, more than 4,000 of the over 6,000 workers made redundant by MG Rover’s collapse last April have since found new employment. A further £2m in financial support has been pledged in support for the remaining 1,800 still looking for work.
(www.bbc.co.uk)
DaimlerChrysler to commit €1 billion to sustain smart business
DaimlerChrysler AG has confirmed that it is planning to focus on the smart fortwo to ensure the long-term sustainability of its smart brand, having abandoned plans to sell it, with profitability expected from 2007 onward. The planned measures for a further enhancement of the business model of smart include the ending of the fourfour model’s production and the complete integration of smart into Mercedes-Benz’s Cars organisation. Overall, these measures are likely to result in a headcount reduction of 300 employees at smart in Böblingen.
The smart forfour is produced by MMC through its wholly-owned subsidiary Netherlands Car B.V. (Nedcar) in Born, Netherlands. The cancellation of the forfour production is still subject to negotiations to be carried out with MMC and all other partners. The measures are still subject to approval by DaimlerChrysler’s management and supervisory boards. Their cost is estimated to be in the order of €1 billion.
Mahindra & Mahindra is on acquisition trail
Just before the Malaysian government announced its new National Automotive Policy last week, India's largest SUV manufacturer, Mahindra & Mahindra Ltd, announced it would begin assembly of pick-ups in Malaysia from next year, either through a joint venture or by developing its existing alliance with the local distributor of its Scorpio range, USF-HICOM.
The company is also hoping to make two major components sector acquisitions, one in Europe and one in India, according to Vice Chairman and Managing Director Anand Mahindra, who told reporters at a briefing for investors, "We are still out there on the acquisition front... but cannot give any time frame."
Indian media have speculated that Mahindra may tender to acquire the forging business of ThyssenKrupp A.G., for which the now global Indian automotive forgings group Bharat Forge last week denied any intention to bid.
(Economic Times, 20 March)
Mitsubishi Motor plans investment in Chinese affiliate
Mitsubishi Motors is in the final stages of protracted negotiations to acquire up to 25 per cent of the equity of the Chinese manufacturer South East Motor, which with Chang Feng Motors, assembles some of around 120,000 cars a year that Mitsubishi sells in China under different brands, reported the FT on 25 March.
Mitsubishi Motors itself reported its global production in February 2006 totalled 120,252 units, a y-o-y increase of 10.2%. Japanese production of 69,628 units represented a 28.6% increase, but overseas production declined to 50,624 units, down to 92.1% of the volume of February 2005; European production dropped 22.2% y-o-y to 5,205 units, mainly due to the end of Pajero Pinin production. Asian production totalled 34,530 units, down 8.4% while production in North America remained stable at 6,991 units.
Saab to launch an E85-electric hybrid prototype at Stockholm motor show
Saab has developed a hybrid car using E85 ethanol in a hybrid powertrain in collaboration with the University of Lund, which will be first seen at the forthcoming Stockholm Motor Show and could enter production as a replacement for the current 9-3 range in 2008, reported Swedish media, including Dagens Industri, last week.
Lotus Group lost £7.4m in 2005
An Automotive News Europe report last week described the Norfolk-based Lotus Group’s plans to develop its engineering services business in pursuit of profitability, after recording a loss of £7.4m on sales of £162.6m last year. Part of the plan involves raising output at the Hethel Lotus Cars plant by assembling niche vehicles for third parties, while engineering services are targeted to increase their contribution to group turnover from about 25% to about one-third by the end of the decade.
Lotus’ APX concept vehicle presented at the recent Geneva Show showcased the company’s contract engineering and ‘Versatile Vehicle Architecture’ capabilities in the field of contract low-volume vehicle development and assembly.
Lotus’ latest own-brand model, the Europa S, is to start production in July this year, with a target of 500 units a year; the current Esprit is due for replacement in 2008, and could be accompanied, says Automotive News Europe, by a new four-seater.
The head of Lotus' parent company, the Malaysian Proton, reaffirmed its support for Lotus at this month's Geneva Motor Show; it is now affected by a new Malaysian government automotive policy which cuts import tariffs which have protected Proton's domestic sales, but seeks an orderly transition to a more competitive position for Proton.
EU BIOGASMAX waste gas fuel project launched with €20m budget
A ‘BIOGASMAX’ project designed to develop the use across the EU of natural gas fuel derived from waste has been launched with funding of €20 million, reported Le Figaro on 24 March. It will pool R&D resources among EU member states, and encourage them to take policy measures to maximise biogas use, including fiscal incentives.
The EU BIOGASMAX project aims to reduce the EU’s dependency on oil, reducing greenhouse gases and direct emissions through knowledge about more efficient production, distribution and use of biogas in the transport sector generated from a wide variety of feedstock available in urban areas and regions in Europe. The project adopts the well-to-wheel approach to identify the potential for efficiency gains and cost optimisation to ensure market expansion.
The BIOGASMAX project is refining and demonstrating a wide variety of technologies, techniques and integrated approaches to enhance the production, upgrading, distribution and use of biogas in the transport sector. To widen the impact of the project a strong component focuses on training activities. The European Natural Gas Vehicle Association (ENGVA) is responsible for this specific component of the BIOGASMAX project.
Emissions controls decrease diesel’s attraction to manufacturers
The French newspaper La Tribune, quoting sources at Renault, reported on 24 March that the costs of meeting Euro 4 and the future Euro 5 noxious emissions standards was beginning to affect the profitability of diesel car engine production seriously. In 2005, diesel cars’ share of the total French new car market declined for the first time after several years of 4-05% year on year growth - albeit only by 0.1% and still reaching 69.1%. In Germany, too, diesel’s share dropped last year, by two percentage points to 42%.
Salaried staff redundancies rumoured at GM tomorrow
Amid US media comment on the impact of GM’s agreement reached last week with Delphi and the UAW on early retirements, some sources reported suggest General Motors will make ‘hundreds’ of US salaried employees at several locations redundant from 28 March.
GM itself has declined to comment on these reports, which suggest the staff affected would be offered standard severance packages without the buy-outs and early retirement incentives offered to 13,000 hourly paid workers. GM’s CEO Rick Wagoner had warned in November 2005 of the company’s intention to cut its salaried and contract workforce by about 7% during 2006. It currently employs directly about 36,000 salaried staff in the US.
The 13,000 early retirements to production workers on offer are reportedly causing anxieties for the US administration; one economist, Barry Bosworth of the Brookings Institution, suggested the programme could be a prelude to a Chapter 11 bankruptcy application, with costs being shifted to pension liabilities that could be shed in the event of restructuring post-bankruptcy. Since GM’s pension obligations are in the region of $31 billion, such an event could exceed the funding resources of the federal US Pension Benefit Guaranty Corporation.
The agreement of last week has generally been greeted as a positive step for GM’s future fixed costs, but as a significant blow for the UAW – unionisation in the US automotive manufacturing sector has already fallen from nearly 65% in the mid-1970s to some 35% now. For GM, the shrinkage of its workforce will improve US capacity utilisation (though that was running at 87% last year) and reduce fixed costs significantly; every active production worker is said to cost GM about $130,000 a year, compared to $15,000 a year for its pensioners.
- Delphi’s deadline for reaching agreement with the UAW on employment contract revisions before it applies to its bankruptcy court to have current contracts set aside is 30 March, but the UAW has indicated it is unlikely to conclude negotiations to its members’ satisfaction this week.
TheCarConnection.com reports that Delphi appears to be on verge of reaching buyout agreements with two other unions, the IUE-CWA and United Steel Workers, that would help it eliminate the jobs of 4,000 blue-collar workers; with the deal agreed with GM and the UAW last week, Delphi is on the verge of cutting its US production workforce by more than half.
(Sources: TheCarConnection, other US media and India’s Financial Express, 24 March)
Remy International records $10.7m 2005 operating loss
Preliminary results for Remy International, Inc., the US manufacturer, re-manufacturer and distributor of rotating electrics and powertrains, show net sales for the fourth quarter of last year increased $63.3 million to $319.1 million, up 24.7% year on year. The increase reflects the impact of the firm’s Unit Parts Co. acquisition in March 2005, as well as a 51.1% increase in powertrain sales and a 10.4% increase in OE sales.
The company reported an adjusted EBITDA (loss) for the fourth quarter of $(0.2) million, a $23.2 decrease compared to adjusted EBITDA of $23.0 million in the fourth quarter of 2004. The decline primarily reflected lower selling prices and higher raw material costs, plus charges associated with the write-down of assets, an increase in the reserve for ‘an environmental matter’ and the costs associated with an organisational change.
For the full year ended December 31, 2005, net sales amounted to $1,229.0 million, a 16.9% y-o-y increase, but the company reported an operating loss of $(10.7) million compared with an operating profit of $86.3 million last year; this including a goodwill impairment charge of $13.9 million. The company believes that its 2006 sales and adjusted EBITDA will be in the ranges of $1,275 to $1,300 million and $90-$110 million respectively.
Remy was formed in 1994 as a partial divestiture by General Motors of the former Delco Remy Division.
Second reading of Registration Marks Bill delayed to June
The Second Reading of the Vehicle Registrations Marks Bill, scheduled to take place on 17 March, was postponed for a second time last week; it is now planned to take place on Friday 16 June 2006. The Bill, backed by the RMIF's Cherished Numbers Dealers Association (CNDA), proposes to allow third parties to be named as the grantee on retention certificates at the time of initial assignment from a vehicle to a certificate. The CNDA believes the proposed changes would reduce bureaucracy for businesses, enable greater choice for the consumer and offer more protection to members of the public purchasing numbers.
