Industry News

• Full Field for Inaugural Formula SAE West
• Honda to Sponsor Irish F1 In Schools Competition
• New Team Ethanol IRL Driver Confirmed
• City must revive its industrial heritage
• Goodyear to cut 1500 jobs in UK and Poland
• Land Rover reaches production record
• DVLA’S century of registration sales
• Ricardo plc receives accolade for its work on the Bugatti Veyron
• Longbridge cars 'on sale in 2007'
• Motoring offences reach record high
• Whitehall fleets fail to hit green targets
• March UK new car registrations fall 1.6%, but private buyers rise slightly
• EU adopts UNECE regulations for retreaded tyres
• JAMA comments on the CARS 21 final report
• Dealer reputation important for car buyers
• Commission consults on motor insurance issues
• Fleets urged to adopt green car technology

• Defra consultation on new air pollution strategy suggests clean vehicle incentives
• European Commission opens consultation on CARS 21 group’s final report
• SMMT hits out at Greenpeace "Off Road Car – On Road Menace” paper
• PSA opens new Valenciennes production unit for new MCP automated gearbox
• DfT publishes 2005 speeding statistics
• Vauxhall, Autotrader and Perrys top latest Hitwise UK website visitor measures
• BRIC: ASA adjudication on Sheila’s Wheels ad is ‘perverse’
• CIE Automotive to buy Brazilian foundry Sada Forjas
• Siemens VDO and Federal-Mogul develop diesel glow plug-integrated pressure sensor
• Jerome York to discuss Saab’s future with GM Europe chairman
• Ford chairman rules out Chapter 11
• Halfords reports like-for-like annual sales up 6.1%, but lower margins
• South Korean prosecutors want to interview Hyundai Motor chairman in bribery investigation
• Proton promises new strategic partnership announcement

• Nanjing ‘could resume MGTF production next year’ - BBC report
• Goodyear to close UK tyre factory
• Nissan to develop its own hybrid technology
• DaimlerChrysler to sell part of its stake in EADS
• Automotive SPICE software process assessment standard to be launched
• South Korean prosecutors ban Hyundai chairman’s son from foreign travel
• Toyota makes $1 million grant to SAE Foundation
• Valeo's StARS stop-start system wins 2006 PACE award
• European Commission urges laggard EU Member States to implement biofuels directive
• Toyota comes 10th in Millward Brown global brand rankings
• Activant launches Business Advisor aftermarket software package
• Ricardo plc wins RAC’s Dewar Trophy for Bugatti Veyron dual clutch transmission
• Retail Motor Industry Federation launches new member website
• BVRLA condemns London Low Emission Zone proposal
• Toshiba launches 64-bit RISC processor for driver information systems
• Meridian Automotive Systems files reorganisation plan with court
• Egypt’s AUTOMECH show set for 1-5 June

• OFT launches study of payment protection insurance
• AutoLogic agrees refinancing terms
• Land Rover records sixth record month of US sales in March
• GM agrees to sell 51% of GMAC to Cerberus-led consortium for $14bn
• Renault inaugurates EMC unit
• Toyota launches consolidated North American R&D and manufacturing operations
• Cooper-Standard reports big drop in 2005 net profit
• Chinese Government approves Mazda investment in Changan Ford
• PSA Peugeot Citroën seeks second plant for Dongfeng JV
• Nedcar negotiations to resume on 11 April following end of smart fourfour assembly
• Binz Omniel hearse wins design award
• Lombard to absorb customers’ additional post-budget VED charges
• nCode to launch integrated test and CAE fatigue solution at Automotive Testing Expo
• IRTEC to re-launch CV technician accreditation scheme at CV Show
• Geely signs assembly agreement in Malaysia
• ADAC emissions tests cast doubt on 140 g/km C02 target
• New European independent car dealer lobby established
• Continental AG to acquire Motorola's automotive electronics business
• EC approves acquisition of Volkswagen Bordnetze by Sumitomo Electrical Industries

• GKN opens latest manufacturing operation in China
• Hybrids consume more energy in lifetime than full-size gasoline SUVs – US study
• UAW: Delphi filing of 1113/1114 motions is a “travesty” - UAW
• GM receives subpoenas over supplier transactions
• GM ‘disappointed’ with Delphi’s court filing to annul supply contracts
• Delphi files court motions to reject labour agreements; one third of global manufacturing sites to be wound down or sold
• GM moots sale of Isuzu stake
• Hayes Lemmerz amends credit lines and updates 2005 guidance
• Network Automotive reports quarterly car dealer trends for Q1 2006
• Yorkshire dealer starts up XPart all-makes parts operation
• Cutting costs is No. 1 concern of US automotive industry: SAE survey
• Volkswagen UK launches online LCV remarketing via 1Link Disposal Network
• Residual values come under pressure – EurotaxGlass’s

The US Society of Automotive Engineers has received a full entry of 70 cars for the first Formula SAE West collegiate racecar design competition.

The event is scheduled to take place at the California Speedway race circuit in Fontana, California on June 14 – 17.

Australia is represented by the University of Wollongong the winners of the US Formula SAE competition in 2003 while the Swedish Chalmers University of Technology team is the only European entrant.

The Irish Computer Society (ICS) has confirmed that its 2006 Irish Formula One in Schools competition will be sponsored by the Dublin based car importer and distributor Universal Honda.

The competition in which secondary school pupils design, build and race CO2-powered model Formula One cars will hold its Irish National Finals in Dublin on May 30 and the victorious school team will win a trip to the Honda F1 Team Operation Centre in UK and a separate prize of milling or IT equipment will be presented to the winning team's school.

Frank Kennedy, sales and marketing director, Universal Honda, said, "We see this sponsorship as a creative opportunity to promote the technological skills of second level students. Honda's association with Formula 1 dates back 40 years and the company's reputation for innovation and technology is well proven; the Honda-powered F1 in Schools offers Irish students the opportunity to integrate their innovative skills with the dream of F1 in a creative and constructive way."

The Rahal Letterman Racing Indy racing League team has confirmed that Jeff Simmons will drive its Team Ethanol backed car for the remainder of the 2006 IRL season replacing Paul Dana who lost his life in an accident at the open round of the series last month.

Simmons said, "These are not the circumstances that I would like this opportunity to come about, but Paul had the same dreams as me. Like him, this is what I've worked so long for. I just want to do my very best to promote the cause that Paul worked so hard for and do the best job I can in the car for Team Ethanol."

"I am honoured to have the opportunity to promote the message and need for the clean, renewable fuel ethanol and to become a member of Rahal Letterman Racing."

Team co-owner Bobby Rahal said, "It is unfortunate that it is under these circumstances that Jeff joins our team, but I think Jeff is the perfect choice to carry on the ethanol program that Paul initiated. Jeff has paid his dues and worked his way up through the ladder system. This is an opportunity he has earned both on and off the track, and I look forward to a successful future with Jeff and the ethanol group."

David Vander Griend, president and CEO of ICM, a partner company in Team Ethanol, said, "Through Paul Dana's determination, ethanol became the performance fuel of choice for the Indy Racing League.

"The best tribute to his legacy is to continue promoting ethanol through racing. We are excited about the future of our new partnership with Jeff Simmons and Rahal Letterman Racing."

Persuading young people that engineering is a career worth pursuing is at the heart of a new manufacturing strategy for Birmingham, reports the Birmingham Post.

A city council report says that schools, colleges and universities must do more to promote traditional and high-tech industries as well as other employment choices.

Ken Hardeman, cabinet member for regeneration, said: "We must capture the imagination of our young people. Manufacturing is definitely still a good career choice despite the pessimistic view taken by some people."

Coun Hardeman (Con Brandwood), launching the strategy, said the negative perception portrayed by the media had to be overturned.

Birmingham would never again see the days of mass employment and volume production, but the value to the city of science-based technology would continue to grow.

Coun Hardeman said he was holding talks with St Modwen, the owners of the former MG Rover site at Longbridge, to make sure that manufacturing would be a "major component" of the company's plans for the land.

Coun Hardeman added: "Manufacturing must become more innovative through the greater use of knowledge and technology to stay ahead of the game.

"The workplace of tomorrow will require a higher level of skills and we have to address this.

"Within Birmingham there are real opportunities for economic growth in medical technology, environmental technology and creative industries."

Coun Hardeman said that although the number of people employed in manufacturing would fall over the next decade, the output in terms of production would grow.

In December 2005, the European Commission published its final report on ‘CARS 21-A Competitive Automotive Regulatory System for the 21st century’. Increasing the competitiveness of the European automotive industry is an important issue for JAMA (Japan Automobile Manufacturers Association). Given the far-reaching implications of the recommendations in the CARS 21 final report for JAMA members, JAMA provided the Commission with its assessment and position on a number of critical issues. These are summarised below.

• Simplification of regulations

• Environment – Reduction of CO2 emissions, CO2 use in mobile air conditioners

• Road Safety – new technologies

• Strengthening Competitiveness – trade barriers, fiscal incentives

Source: JAMA

The three most important considerations car buyers have when choosing a dealer from which to buy a car are past experience, trade-in values and dealer reputation. The Brand Equity and Media Effectiveness Research (BEAMER) found that along with trade-in price, a dealer’s reputation was just as influential in the car buying process.

Source: Motor Trader

Commission consults on motor insurance issues

The European Commission has launched a public online consultation on two issues related to motor insurance – the effectiveness of claims representatives in settling claims, and insurance cover for legal expenses.

Internal Market and Services Commissioner Charlie McCreevy said: “Europeans must be able to use their cars in other Member States as they would at home – confident that they have adequate insurance coverage and that any claim will be dealt with quickly and efficiently. We want people with direct experience of these two issues to tell us how well the systems we have put in place work in practice. We will listen to your views.”

During the preparation of the Fifth Motor Insurance Directive, the European Parliament raised some questions related to the insurance cover for legal expenses. In particular, these questions concerned the availability of this insurance on a voluntary basis, and the impact, in terms of the cost of premiums, of including insurance cover for the victim's legal expenses in the compulsory third-party liability motor insurance to be taken out by the party at fault. The Commission agreed to examine these questions and they are also included in the consultation.

The consultation is targeted at EU citizens and all other interested parties, such as lawyers and insurers. To make it as quick and easy as possible to respond, the Commission is using its Interactive Policy Making (IPM) tool, which aims to improve governance by creating web-based questionnaires for collecting and analysing reactions. The consultation is open until 5 June 2006.

Further information: http://europa.eu.int/yourvoice/consultations

Goodyear Tire & Rubber, the largest tyre company in the world, on Wednesday announced it would cut 1,500 jobs and save up to $50m by eliminating unprofitable operations in the UK and Poland. Goodyear expects the cuts to save $40m-$50m, incurring charges of $105m-$115m, about half of which will be reflected in earnings in the first two quarters of the current fiscal year.

The company, which embarked on a restructuring plan in September, said it started talks with unions to shut down its Goodyear Dunlop plant in Washington, UK, which has 585 staff. A smaller operation in Wolverhampton will shed about 40 jobs, with 450 remaining.

Goodyear, which lost $51m in the fourth quarter, said it aimed to reduce costs by about $1bn during the next few years. Like its rivals, the company has faced rising raw materials costs, with rubber prices almost quadrupling in recent years while crude oil trebled. Meanwhile, customers in the car sector have limited the pricing power of suppliers such as Goodyear. The closures announced yesterday come after Goodyear sold its farm tyre division in the fourth quarter.

In addition to the shutdowns in the UK and Poland, the company said it would also cut costs in retail, administration and logistics across the engineered products division and in Europe and Asia- Pacific overall.

Source: FT

Land Rover has recorded the best single month's sales in its 58 year history, in a month when the UK market was down overall. Land Rover sold over 10,600 vehicles, a 24% increase over March last year. Every one of Land Rover's five nameplates enjoyed a significant sales rise. Defender sales rose 17%, Discovery by 17%, Range Rover by 39% and Freelander by 5%. The Range Rover Sport achieved its best month, since its launch last summer, with 2,014 sales.

Land Rover's UK sales for the first quarter of this year are 16% ahead of the same period in 2005 – which went on to become the most successful sales year since Land Rover started production in 1948. The UK performance is also reflected globally for Land Rover, with all-time worldwide record sales in March, some 23% up on 2005, completing a best-ever first quarter for the marque.

Land Rover employs 10,500 people directly in the UK and supports a further 50,000 in the supply chain. Last year over 70% of the 185,000 vehicles produced were sold abroad, making it a significant wealth creator for the UK.

Source: Newspress

One hundred will be the Driver and Vehicle Licensing Agency’s (DVLA) special number this April when it celebrates a century of auctions of its personalised registrations at Leicestershire’s Stapleford Park Country House Hotel. Top of the list will be ‘51 NGH’ and ‘1 OO’ both of which have reserve prices of £10,000. Other notable marks include; RU55 ELL, MR51 NGH, DR51 NGH, 6 PAC, OK54 LLY and 500 GP.

DVLA began selling personalised registrations in December 1989 with an auction of just 74 marks held at Christies of South Kensington, at which the registration ‘1 A’ sold for over £200,000 creating a record for the price paid for a vehicle registration which stood until 1993 when K1 NGS eclipsed it selling for £231,000.

There are six DVLA Personalised Registrations auctions a year and winning bids often start from as low as £250 with the average purchase price across all previous 99 auctions standing at £3,500. The Asian community has warmed to personalised numbers and their popularity is reflected in the 100th auction with over 30 numbers likely to prove popular.

Full details, including the complete list of marks available, their reserve prices and how to bid, can be found at www.dvlaregistrations.co.uk.

Source: Newspress

The Royal Automobile Club today awarded the Dewar Trophy to Ricardo for outstanding technical achievement in the support provided to Bugatti on the design and development of the Dual Clutch Transmission technology (DCT) for the Veyron supercar. The Royal Automobile Club Dewar Trophy is awarded to the company in the motor industry that is judged to have demonstrated leading edge technical development.

The specialist engineering support provided by Ricardo to Bugatti in the development of the Dual Clutch Transmission for the Veyron received high praise from the Royal Automobile Club Dewar Trophy Committee. "Ricardo’s Dual Clutch Transmission is a breakthrough in advanced gearbox design that places the company ahead of its larger global competitors," confirmed John Wood, Dewar committee chairman.

In particular, the panel of judges was impressed by the exceptionally professional and focused approach of the team at Ricardo who supported Bugatti on the design and engineering of the transmission and driveline system. The challenges facing them were immense. They had to design and manufacture a 7-speed gearbox and transmission control system capable of handling in excess of 1,001 PS over the extended life of a production car while meeting all the normal Volkswagen standards of reliability and durability.

And whilst the Dual Clutch Transmission has been first developed for the Bugatti Veyron, which at over £800,000 is beyond most motorists’ dreams, Ricardo believes the technology will have widespread application throughout the motor industry.

Source: Newspress

The UK chairman of the firm that bought Rover's Longbridge plant has said that Nanjing Auto is about to restart car-making in Birmingham. The BBC has learned that cars could go on sale from July 2007 and Chinese firm Nanjing has said it is keen to re-employ ex-Longbridge workers. Two production lines remain intact, including the MGTF sports car line. Some Midland firms have been approached to make parts for Nanjing and more orders are expected.

Speaking through an interpreter, Nanjing's UK chairman Wang Hongbiao told the BBC: "We are going to resume production of MGTF here. Maybe in the near future... we will launch some new models to the market."

Nanjing announced in February that it had renewed its lease on the Longbridge plant for a further 33 years and wanted to resume car production. It also has a get-out clause allowing it to walk away. The firm has previously said it could employ 1,000 people. It later changed that number to 600. On Tuesday, Nanjing said there would be 200 jobs in the first year of production. The company said the more cars it sells the more jobs it will create. A recruitment drive to find the initial workforce will take place at the end of this year.

Source: BBC

The total number of motoring offences dealt with by police reached a record high of 13.5 million, up 3% on the previous year. The latest Home Office figures show that there were 466 offences for every thousand vehicles in England and Wales during 2004.

More than three million offences were fixed penalty notices issued by the police, although the figure was down 2% on 2003. Parking attendants handed out 7.7 million penalty charge notices, up 7%. Speed cameras provided evidence for two million offences and 91% of speeding offences. Breath tests were up 8% to 578,000, but the number of positive or refused tests fell 3% to 103,000.

Paul Smith, founder of the Safe Speed road safety campaign, was unimpressed by the figures. He said: ‘These statistics do not suggest that we are doing anything to improve road safety. They show that we’re hitting easy and ineffective targets, rather than taking the trouble to identify those causing a danger to others. As drivers are more focused on legal driving they are less focused on safe driving.’

Source: FNN

FLEETS hold the key to improving the health of millions of people by becoming ‘early adopters’ of the cleanest technology, according to three influential campaigning groups. Employers are being urged to go beyond the demands of legislation and do more to reduce and offset their vehicle emissions to improve air quality. This includes adopting the latest hybrid technology and other clean fuels and rethinking the need to drive at all, according to the RAC Foundation for Motoring.

Executive director Edmund King said manufacturers needed long-term support and consistency of policy from the Government, while industry had to do more to direct drivers. He said: ‘People say they care about the environment, but there is a gap between what they say and doing something about it. We need to help change that through early adopters such as fleets to change the status of low carbon cars.’

Bill Sneyd, operations director of the CarbonNeutral Company, which has put together a greener driving pack, said if a quarter of cars were fuel efficient, it would save 335,000 tonnes of CO2.

Source: FNN

FLEETS are challenging the Government to practise what it preaches as signs show that it has failed to meet its own targets on green motoring. Four years ago the Government announced that by March 31, 2006, it would reduce its department fleets’ carbon emissions by 10%, make sure 10% of the fleets were alternatively fuelled and reduce single occupancy car commuting by 5%.

In December, the Sustainable Development Commission (SDC) raised serious concerns about the progress of Government departments towards those targets. The Department for Work and Pensions has an idea of how it is progressing towards the targets, but has only managed to reduce CO2 emissions by 6.5% instead of 10%. It could not say how effective efforts at reducing single occupancy car commuting had been. However, it did confirm that 17% of its fleet is alternatively fuelled. Fleet experts have expressed disappointment at the findings.

A spokesman for fleet managers’ association Acfo said: ‘If the targets are unreachable, then it needs to be honest and say they are unreachable, and take them off everybody. If they are reachable, then the Government needs to be an exemplar of best practice.’

Hazel Dempster, spokeswoman for the Sustainable Development Commission, said the progress towards the targets was not constantly monitored, but would be reviewed again at the end of the year. She said: ‘We’ll go through the information gathering process later this year and report on it afterwards.’

Source: FNN

The SMMT has reported March car registration figures down 1.6% y-o-y to 435,847 units. Private new car registrations in March at 222,542 represented an absolute increase of 483 and the first in 24 months, while diesel volumes were up 8.9% to 156,932.

“The lure of the new 06 registration plate and some excellent deals on the forecourts have seen new car buyers heading back to dealerships. The private market remains fiercely competitive despite the general slowdown in the economy”, commented Christopher Macgowan, SMMT chief executive. “However, a reasonable March cannot mask the poor start to the year, and 2006 will continue to be a challenge for the industry as we fight for every sale.”

Non-private car purchase volumes fell in March, with large (25-unit+) fleet demand down just 0.4 per cent, outweighed by a sharper fall of 18.5 per cent registrations to business customers. This does, however, follow a sharp increase in registrations at the end of 2005 as fleet buyers anticipated the end of a tax break for diesels.

The new car market has fallen in 23 of the past 24 months. Volumes over the first quarter of the year have declined by 32,299 units. The 12-month rolling rate has fallen by 214,697 units since March 2004.

The supermini sector showed its first growth since March 2004, with a 1.8% rise. The Ford Fiesta took second place overall, after its volumes rose by 34.0% or 5,535 units. The Ford Focus remained the best selling car model in March and in the first quarter, despite a fall in volumes. Lower medium sector cars recorded a 10.0% drop in March 2006 volumes, down on a strong 2005 performance.

MG Rover's demise accounts for a drop of 11,543 units in March and 17,950 units over quarter one, compared with the overall market's drops of 7,092 and 32,299 units.

Diesel volumes showed their first increase of the year in March, rising 8.9%, to a market share of 36.0%. The rise in March helped first quarter diesel registrations rise by 1.8%.

The Ford Focus remained the best selling diesel model in both the month and year-to-date. Ford's Mondeo moved up to second place in both periods.

Major volume manufacturers’ market shares changed little in March and the first quarter of this year, with the exception of Fiat which showed strong growth following the launch of the new Grande Punto supermini. Jeep, Chrysler and Aston Martin recorded sizeable increases in sales, and Land Rover recorded its best-ever monthly sales, both in the UK and in the US.

Details of sales by manufacturer are available to download at www.smmt.co.uk

- The SMMT is to publish a report on ‘ 2006 UK New Car Registrations by CO2 Performance’ on 25 April.

Consumer confidence in purchasing re-treaded tyres will be enhanced by new standards for the retreading process and the final quality of such tyres, says the European Commission, announcing that from now on all new retreads sold in the EU have to align with the requirements of UNECE (United Nations Economic Commission for Europe) regulations. These introduce similar standards of safety and quality control for retreads as for new tyres. The EC adds that retreads offer significant environmental advantages over new tyres, and hopes the new regulations will increase their market share.

Günter Verheugen, European Commissioner for enterprise and industry policy said: “This is an elegant way of keeping EU legislation slim while regulating effectively on safety in the automotive sector. More such initiatives will follow.”

The European Council decision is the first one to make regulations of the UNECE mandatory within the EU. Up to now, technical prescriptions of UNECE Regulations have only been recognised as alternatives to those contained in EU directives. By making UNECE Regulations 108 and 109 compulsory for retreaded car and CV tyres respectively, the EU avoids the necessity to develop its own prescriptions for retreads, while ensuring that EU retread manufacturers can benefit from a market which extends beyond the EU borders.

More than 50% of heavy trucks, buses and trailers in the EU currently run with retreaded tyres.

For further information see:

http://europa.eu.int/comm/enterprise/automotive/pagesbackground/tyres.htm

Hitwise, the internet usage monitor, has announced the most popular websites from more than 50 categories in the UK during 2005. In the automotive sector, www.autotrader was the most widely used online source for classified ads, while www.vauxhall.co.uk was the top vehicle manufacturer site, and www.perrys.co.uk the leading franchised dealer site. Vauxhall represents Vauxhall among its 14 manufacturer franchises.

The Hitwise UK Annual Online Performance Awards recognise the most successful websites in as defined by the percentage of user visits a website received between January and December 2005.

(www.hitwise.com)

The Advertising Standards Authority has delivered an adjudication on a complaint from The Body Repair Industry Campaign (BRIC) which objected to a direct mail leaflet, magazine insert and magazine ad for women's car insurance offered by Sheila’s Wheels, a brand of the esure Peter Woods/HBOS joint venture.

Text inside the leaflet stated " ... So all of our registered repairers undergo training to ensure they understand the concerns women drivers have ... ", and "Our recommended repairers are trained to be female friendly ... ".

The complainants challenged whether Sheilas' Wheels repairers had received specific training to deal with female customers. esure said they had developed a network of repairers who were contracted to undertake repairs for a number of brands, including Sheilas' Wheels.

They said they surveyed a selection of their repairers to establish views on what they perceived to be the concerns of female customers and incorporated feedback into a Best Practice Guidelines report, which was then distributed amongst all repairers in the network. They submitted samples of the survey and the final guidelines and explained that repairers were contractually obliged to adhere to the best practice guidelines.

esure said they distributed a training pack to all repairers, which referred specifically to the repairers' obligations under the best practice guidelines, including those instructions designed with female customers in mind. They said regular meetings with repairers monitored the advice given in the training pack and reinforced the need to provide a 'female friendly' approach to customer service where appropriate. They sent in examples of meeting minutes and a training pack for the ASA’s consideration.

The ASA investigated the ads under CAP Code clauses 3.1 (Substantiation) and 7.1 (Truthfulness) but did not find them in breach.

BRIC has issued a news release complaining that the ASA adjudication is ‘perverse’, in suggesting that despatch of the product announcement to esure's repairers and the updating of its standing instructions could be deemed to be “training”. The Sheila’s Wheels instruction delivered by esure’s Repairernet email consists, reports BRIC, of some two and half pages of text under the heading “Customer Service Guidelines”. References to female drivers are contained at two points in the text on the front page, as follows: “Female customers may be cautious about accepting delivery of car during hours of darkness if they are at home on their own”; and “Consider requirements for customers in vulnerable situations, stranded at roadside, female customers, etc…”

BRIC felt that these references were insufficient to justify the statements made about the product.

The components group based in the Basque region of Spain CIE Automotive has signed an agreement of intent to acquire the Brazilian casting and foundry firm Sada Forjas for €43 million, subject to the completion of due diligence. CIE Automotive acquired another Brazilian business last year, Jardim Sistemas Automotivos, for €10 million, bringing the number of its operations in the country to five.

Sada Forjas, founded in the 1980s, has annual turnover of around €46 million and an 800-strong workforce, and specialises in wheel hubs, spindles, and transmission mechanisms.

CIE Automotive now has 31 factories in Europe, Brazil, Mexico and China, and a global workforce of 7,800. Its 2005 consolidated sales reached €782 million, (17 per cent up on 2004) and profits were up 77% y-o-y to €35.13 million.

(www.eitb24.com)

New measures to tackle air pollution could extend life expectancy, cut environmental damage from acidic air pollution and generate benefits of £1.4billion a year, the government said yesterday. Air pollution is currently estimated to reduce the life expectancy of every person in the UK by an average of eight months.

Measures outlined for consultation in a review of the Air Quality Strategy for England, Scotland, Wales and Northern Ireland could help, says Defra, to reduce the pollution impact on average life expectancy to five months by 2020.

Minister for the Local Environment, Ben Bradshaw, said: "Although our air is cleaner in overall terms than at any time since the industrial revolution, air pollution is not declining as quickly as expected. We need to move faster and take further measures to move us closer to meeting our objectives.

"Pollutants from our cars, ships and industrial plants are still having a marked affect on our health, reducing the average life expectancy in the UK by eight months.

"This can't continue. The measures outlined in this Review would - if implemented - be a significant step forward in improving public health and our environment."

The current situation is that:

- Over the past ten years the quality of Britain’s urban air has improved

- From 1990 to 2001 the improvements have helped avoid 4,200 premature deaths per annum and 3,500 hospital admissions

- We are continuing to meet objectives for pollutants like carbon monoxide, 1,3-butadiene, benzene and lead

- We are meeting our current objectives for all air pollutants in over 99% of the UK.

However, there are still problems: we are expected to miss our targets for reductions in nitrogen dioxide, ozone and particles which can cause respiratory and cardiovascular problems:

- In 2005, pollution in UK expected to reduce average life expectancy by 8 months

- In 2003, pollution in UK led to over half of natural and semi-natural habitats to exceed harmful levels of acidity.

The new strategy offers a package of measures which will reduce average exposure to air pollutants for everyone; if implemented could see increase in life expectancy of three months by 2020; and consists of a range of measures, including:

1. New tighter European vehicle emissions standards (EU policy)

2. Incentives for cleaner vehicles

3. Further reductions in emissions from small combustion plants

4. Further reductions in emissions from ships

Mr Bradshaw said, "This consultation suggests a much more wide ranging approach for pollutants such as fine particles (PM2.5), which is cost effective, and geared towards improving public health in the UK."

An updated strategy should be published at the end of the year drawing conclusions from this consultation. The review of the UK's climate change programme published 28 March is intended to reduce emissions of greenhouse gases but will also have some small benefits on emission of air pollutants.

The consultation paper, its technical annexes and accompanying Regulatory Impact Assessment are available from the Defra website at:

http://www.defra.gov.uk/corporate/consult/airqualstrat-review/index.htm

- In Spain, the country's car dealer association has just campaigned for the continuation of the present government car scrappage incentive programme due to end on 31 December 2006; the association claims that without further rejuvenation of the Spanish car population, Spain will not meet the EU 140 g/km C02 reduction target in 2008.

The European Commission has launched a public consultation on the report of the CARS 21 High Level Group that provides a comprehensive analysis of the competitiveness of the European automotive industry. The report puts forward a number of recommendations in several key areas such as regulatory simplification, environmental protection, road safety, research and development, trade, taxation/fiscal incentives and intellectual property.

Stakeholders are invited to comment on the content and recommendations of the report. The Commission is currently preparing a communication on the competitive automotive regulatory framework for the 21st century on the basis of the CARS 21 final report, and wants to draw on the largest possible range of analyses and opinions.

Vice-President Verheugen responsible for enterprise and industry policy said: “The launch of the public consultation on the results of CARS 21 embodies the Commission's firm commitment to better regulation principles. I invite all interested parties to contribute so that the Commission has a broad basis of opinion on which to build our conclusions."

In particular, stakeholders are invited to comment on the following questions:

- Whether CARS 21 has addressed and proposed the most relevant issues for the automotive industry?

- Whether the actions proposed by CARS 21 are cost-efficient and balanced?

CARS 21 (Competitive Automotive Regulatory System for the 21st Century) was launched by Commission Vice-President Günter Verheugen on 13th January 2005. The Group brought together the key stakeholders in the automotive sector to conduct a comprehensive analysis into the competitiveness drivers of the European automotive industry.

The objective was to make recommendations for the short, medium and the long term public policy and regulatory framework for the European automotive industry to enhance global competitiveness and employment while sustaining further progress in safety and environmental performance at a price affordable to the consumer. The Group held a series of meetings throughout 2005 and adopted its final report on 12th December 2005.

The Commission is currently preparing a Communication to the European Parliament and Council on the competitive automotive regulatory framework for the 21st century. The Communication is expected to present the conclusions of CARS 21, put forward the Commission’s interpretation of these conclusions and indicate a series of actions, which the Commission intends to take in order to improve the competitiveness of the European automotive industry.

The public consultation can be found at:

http://europa.eu.int/comm/enterprise/automotive/pagesbackground/competitiveness/cars21_finalreport_consultation/index.htm

Greenpeace reports that actress Thandie Newton has replaced her BMW 4x4 with a hybrid car and written to dozens of other celebrities suggesting they think about doing the same, enclosing a copy of a new report published by Greenpeace.

The report, entitled "OFF ROAD CAR - ON ROAD MENACE", which can be downloaded from www.greenpeace.org.uk, was written by Dr Peter Wells of Cardiff University's Centre for Automotive Industry Research. Greenpeace’s release on the report suggests that 4x4s:

- Consume around 300% more fuel than an efficient family car

- Emit 300% more climate-changing gases and other pollutants

- And are three times more likely to kill a pedestrian than an ordinary passenger car

The Cardiff study, focusing on the Range Rover and Land Rover Discovery models, argues that their basic design results in "weight-gain spiral" that leads to excessive pollution and makes them much more dangerous for pedestrians and drivers of other vehicles. The report cites US studies which found that death rates are up to nine times higher for car occupants hit by an SUV compared with occupants of the SUV itself.

The report finds that the excessive pollution from SUVs is the result of trying to match off road performance with levels of comfort and convenience expected by those that are going to drive the vehicles in urban areas. It shows how SUV manufacturers advertise off road features that are functionally useless in normal urban driving but make the vehicles much more dangerous and polluting that an ordinary car.

The SMMT responded this week with frustration to what it called “the latest piece of 4x4 'research'”, saying it pulled together ‘a host of inaccurate and unconnected data’ from a range of sources, mainly from the USA where SUV data fall within the truck category.

SMMT chief executive Christopher Macgowan said, "This latest paper is full of the usual misconceptions, mixing opinion with the occasional fact. To include five pages of safety data based on a different set of US vehicles, without any supporting evidence relating to either the UK or European market, is clearly irresponsible and misleading.

"Where were the facts relating to CO2 emissions, showing a fall of 10.7 per cent for the new car market? Where was the recognition that, despite the increase in sales of 4x4 vehicles, CO2 from them has fallen 17.3 per cent? Where was the fact that despite a 25 per cent overall increase in cars on the roads, the level of emissions from passenger cars has remained flat? All we ask for is a balanced and responsible discussion about the facts as they affect motorists, and our industry, in the UK.”

The SMMT offered the following facts to ‘help to redress the balance’:

- 4x4/SUV registrations in the UK rose from 121,556 in 2001 to 187,392 in 2005. In road accidents over the same period, injuries and fatalities among pedestrians fell 17.4 per cent and car users by 16.9 per cent. (1)

- Each of the three best-selling 4x4s on the market - the Land Rover Freelander, Toyota Rav 4 and Honda CR-V is shorter than a Ford Mondeo or a Vauxhall Vectra. (2)

- The Toyota Prius has the same EuroNCAP ratings as the Volvo XC90. There are many examples of models in all segments which perform less well than current 4x4/SUV models. Clearly this is an issue of individual product design and not a reflection on an 'unsafe' vehicle type. (3)

- The top 10 areas for 4x4/SUV buying in Britain in 2005 are predominantly rural. Warwickshire and Powys lead the way followed by the Scottish Borders, Oxfordshire and Gloucestershire. Large conurbations like London, West Midlands, Merseyside and Manchester appear towards the bottom of the list.

- Stability control systems are increasingly fitted as standard on 4x4/SUV models, such as on the Volkswagen Touareg, Volvo XC90, BMW X5 and Mercedes M Class. Anti-rollover technologies are also common, fitted to models like the new Land Rover Discovery III, Nissan X-Trail and the Jeep Cherokee. Such 'active safety systems' are designed to prevent an accident occurring in the first place.

1. Source: DfT statistics

2. Source: 4x4 – The Facts, SMMT 2006

3. Source: www.euroncap.com

- Land Rover recorded the highest single month's UK sales in its 58-year history in March, when the UK car market was down overall. Land Rover sold over 10,600 vehicles, a 24% increase over March 2004.

(www.greenpeace.org.uk, www.smmt.co.uk)

Siemens VDO and Federal-Mogul Corp. announce in a US news release their joint development of the Glow Plug Integrated Pressure Sensor (GPPS), a product designed to optimize the combustion process in light, medium and heavy duty diesel vehicles by helping to increase engine power while lowering fuel consumption and emissions.

The GPPS promises to significantly reduce oxides of nitrogen (NOx) and particulate emissions by integrating key functions into the same compact in-cylinder space. The sensor, integrated into the glow plug due to lack of room in the cylinder chamber, measures combustion and provides feedback to the engine management system, which controls the timing and quantity of fuel injected into the cylinder to stabilize combustion temperatures, allowing the engine to adjust injection characteristics to avoid combustion conditions producing high NOx levels.

The GPPS does not require adaptation of cylinder head design because the sensor is integrated into the glow plug. As global emissions standards become stricter, Siemens VDO claims the GPPS engine-technology also provides a solution to significantly reduce the cost, weight and packaging of diesel after-treatment solutions.

Achieving low combustion temperatures in the cylinder is crucial to lowering NOx emissions from diesels, because raw NOx is primarily emitted at the engine's peak combustion temperature and pressure. Siemens VDO has been working on a solution to this challenge with Federal-Mogul Corp. since 2003 and has brought the GPPS to maturity, which is scheduled for production in 2008.

At the centre of the GPPS sensing element is a disc made of polycrystalline piezo ceramic mounted in the glow plug structure between two isolating washers. During the combustion process, the pressure increase applies a force onto the glow plug and its degree of structural change is passed on along an optimized stress transfer path and onto the piezo electric element. The degree of force applied to the glow plug is captured by the piezo element and processed to deliver an accurate electronic measurement of cylinder pressure in the engine's combustion stroke.

GM product development vice-chairman Bob Lutz recently confirmed that General Motors had no plans to dispose of its Saab subsidiary, and Jerome York, representing investor Kirk Kerkorian on GM’s board, has appeared to back off earlier demands for its sale. But Swedish media reported this week that Mr York is due to arrive in Europe to discuss Saab’s future with GM Europe chairman Carl Peter Forster, and quote the latter as saying, “The dialogue with Mr York is not over. I am going to meet him again soon, and I’m sure he will accept our strategy.”

Saab’s two current model ranges, the 9-3 and 9-5 and their derivatives sell a combined volume of around 150,000 units, though a forthcoming new compact 9-1 model aiming to compete with rivals such as the Audi A3 is expected to increase total sales by about a third.

(Dagens Industri, 4 April)

Speaking at a luncheon meeting of the Automotive Industry Action Group in Detroit this week, Ford Motor Co. chairman and CEO Bill Ford said yesterday that bankruptcy was not an option for his company, whose North American automotive business is losing market share and lost $1.6bn last year, although Ford’s global profits reached $2bn. Ford recently announced a North American restructuring plan, which involves the loss of up to 30,000 jobs and the closure of 14 US plants over the next six years.

"We're acutely aware of the state of our industry, of the state of a lot of the companies we do business with, and frankly, our own deteriorating ratings with the ratings agencies, and so we're working very hard on the fundamentals of our business," said Mr Ford. "We've got one big problem and it's the U.S. auto business, and we're going to fix that, and when we fix that this discussion will disappear."

(Source: AP report by Lee-Ann Durbin, covered in US media)

Listed motor accessory and cycle retail chain Halfords has reported full year same-store sales up 6.1% y-o-y but said margins had fallen as it diversified into satellite navigation and insurance products. Halfords expects to report pre-tax profits of around €77 million for the year ended 31 March 2006.

PSA Peugeot Citroën opened a new production unit at the Valenciennes plant this week dedicated to the manufacture of a new six-speed electronically-controlled automated gearbox called MCP.

With a capacity of over 800,000 gearboxes a year, the new production unit secures the Valenciennes plant’s 2,200 jobs, strengthening PSA Peugeot Citroën’s position as the region’s leading employer. Total investment in the production of the new gearbox amounts to €290 million for capital equipment and €140 million for research and development.

The new gearbox is built on a six-speed mechanical base and offers both automatic and manual operating modes. The electronic control of the clutch and gear-shift improves vehicle performance while significantly reducing fuel consumption. The new gearbox will be progressively introduced into Peugeot and Citroën mid-range petrol and diesel-powered models.

The Department for Transport today published national statistics on vehicle speeds in Great Britain in 2005. The latest figures show that the proportion of motorists exceeding the speed limit in 2005 changed very little from 2004, although driving in excess of the speed limit remains at a high level on all types of road.

The main features of the new statistics released today are:

- On roads with a 30 mph speed limit 50 per cent of cars exceeded that limit in 2005 compared with 53 per cent in 2004; 21 per cent travelled faster than 35 mph, compared with 22 per cent in 2004.

- On 30 mph roads, half of motorcycles exceeded that limit in 2005. Twenty six per cent of motorcycles were travelling at more than 35 mph in 2005 compared with 24 per cent recorded in 2004.

- The survey also reveals a high incidence of speeding by heavy goods vehicles on built-up 30 mph roads: 46 per cent of 2-axle heavy goods vehicles exceeded the speed limit, 18 per cent by more than 5 mph.

- On 40 mph roads 25 per cent of cars exceeded the limit, with 9 per cent exceeding 45 mph, a reduction from the 27 and 10 per cent respectively recorded in the last three years (2002 - 2004).

- Thirty four per cent of motorcycles exceeded the 40 mph limit compared to 38 per cent in 2004. Seventeen per cent of motorcycles on 40 mph roads were travelling at more than 45 mph in 2005. This is a reduction from the 19 per cent recorded in 2004.

- More than half the cars on motorways and 48 per cent of cars on dual carriageways travelled faster than the speed limit; 19 per cent were travelling faster than 80 mph on motorways, and 13 per cent on dual carriageways.

- The proportion of motorcycles travelling at more than 80 mph on motorways has remained stable. Twenty seven per cent in 2005 compared with 28 per cent in 2004; whilst on dual carriageways the proportion rose from 21 per cent to 25 per cent.

- On major, non-built-up single carriageway roads, 77 per cent of articulated HGVs were exceeding their 40 mph limit (27 per cent by more than 10 mph). The average speed recorded for articulated HGVs on these roads was 46 mph, just 3 mph less than the average speed of cars (49 mph), for which the limit is 60 mph.

Investigators working on the South Korean Supreme Prosecutor’s Office’s investigation of bribery allegations concerning Hyundai Motor’s relations with the country’s government may summon Hyundai Motor Group Chairman Chung Mong-koo for questioning, according to a prosecution official speaking today on conditions of anonymity.

"We see it necessary to question Chairman Chung Mong-koo and Chung Eui-sun, (the chairman's son and) president of Kia Motors Corp., to know for what purposes the secret fund was used," the official said. Mr Chung Mong-koo is currently visiting Hyundai’s recently-opened plant in Alabama; his son and some other Hyundai executives were banned from travel abroad earlier this week in connection with the investigation.

(Source: Yonhap news agency)

Malaysia's national car maker Proton, the owner of the British Lotus Group, is close to forming a "strategic" partnership with an unnamed vehicle manufacturer, according to its Managing Director Syed Zainal Abidin Syed Mohamed Tahir. He told The Association Press yesterday in Malaysia that "Proton is finalizing its strategic alliance. We are still evaluating what shape and form it would be. Hopefully it will be announced very soon."

Proton, which has to face up to reduced Malaysian CBU vehicle import tariffs and compete more directly with larger manufacturers under the terms of Malaysia’s recently-announced automotive sector policy, was in talks with manufacturers last year including at one point MG Rover’s owners, and latterly VW. Negotiations with the latter foundered on Malaysian reluctance to cede a share of Proton’s ownership to a foreign firm.

Proton's main technology partner, apart from its Lotus Engineering subsidiary, has long been Mitsubishi Motors Corp.

(www.news.moneycentral.msn.com)

The BBC has reported that Longbridge-built cars could go on sale from July 2007 and that MG Rover owner Nanjing Automobile has said it is keen to re-employ upwards of 200 ex-Longbridge workers.

Two production lines remain intact, including the MGTF sports car line. Speaking through an interpreter yesterday, Nanjing's UK chairman Wang Hongbiao told the BBC: "We are going to resume production of MGTF here. Maybe in the near future ... we will launch some new models to the market." There would reportedly be 200 jobs on offer in the first year of MG TF production, and a recruitment drive for the plant’s initial workforce will take place at the end of this year.

The BBC report does not confirm whether Nanjing now envisages collaboration with the GB Sportscar consortium, which had been seeking investment funds without apparent success to participate in MG manufacture in conjunction with Nanjing Automobile.

Meanwhile, MG Rover’s former holding company Phoenix Venture Holdings is reported to be planning to ask Ford Motor Company to account for how it spent a fund of £23m originally earmarked to safeguard supply of petrol engines from MG Rover’s sister firm Powertrain for the Land Rover Freelander, in case Powertrain became insolvent. Autowired reports that the money was deposited by PVH in a bank account from which Ford is said to have withdrawn the funds when Powertrain was put into administration.

Given that at that time Land Rover had a stockpile of 6,000 engines, Phoenix is reportedly set to seek Land Rover parent Ford’s confirmation that the £23m was spent on obtaining a further supply of engines for the run-out Freelander.

"If the money was not in fact used for the purpose for which it was intended we believe it should be repaid for the benefit of the Longbridge trust fund," a PVH spokesman told Autowired. A Ford spokesman told the industry website, "We went to great lengths to keep Powertrain going, even after the collapse, by paying the wages for two weeks and working with the administrators to try to secure a rescue package."

- SAIC, the Chinese competitor to Nanjing Automobile which acquired rights to certain Rover models before Nanjing acquired the company from administration, hopes to export initially 50,000 units a year of a Rover-based car to the US, starting in 2010, according to the subscription website WardsAuto.com.

(www.bbc.co.uk/business, www.wardsauto.com, www.autowired.co.uk)

The Goodyear Tire & Rubber Company today announced that it intends to close its ‘high-cost’ tyre plant in Washington, Tyne & Wear, as part of its strategy to reduce costs in its worldwide operations, and has begun consultations with unions representing the plant’s 585 employees.

Richard Johnson, managing director of Goodyear Dunlop UK, said: "We have worked with our unions and associates to improve cost competitiveness at our Washington plant. Despite the efforts of all involved, we have been unable to manufacture tyres at a competitive cost level. The market for the type of tyres made in Washington is very competitive and is increasingly dominated by low-cost suppliers from Eastern Europe and the Far East."

The Washington tyre plant was built in 1968 for Avon Tyres. Since then it has been operated by SP Tyres UK Ltd.

A further 39 jobs at Goodyear’s Wolverhampton plant, which supplies parts to Washington, may also be lost. The company has begun consultation with union representatives. This action in the UK is expected to create annual savings of approximately $20 million and result in charges of between $75 million and $85 million ($55 million to $65 million after-tax). The cash portion of this charge is estimated to be $35 million to $40 million.

Goodyear will also cease production of bicycle tyres and inner tubes at its Debica plant in Poland. Other cost reduction actions, in logistics, retail and administration will be taken in the company's EU, Asia Pacific and Engineered Products business units.

In total, these actions are expected to eliminate about 1,500 jobs, create annual savings of between $40 million and $50 million ($30 million to $40 million after tax) and result in a charge of between $105 million and $115 million ($75 million to $85 million after tax).

Of the total charge, approximately $55 million ($40 million after-tax) will be recognized in the first and second quarters of 2006. The cash portion of these charges is estimated to be between $60 million and $65 million.

Goodyear is the world's largest tyre company with over 90 manufacturing facilities in 28 countries and more than 80,000 people employed worldwide.

(www.goodyear.com/corporate)

South Korean prosecutors yesterday banned the son of Hyundai Motor’s chairman Chung Mong-Koo from travelling abroad, in the course of their inquiry into bribery allegations arising from the merger of Kia Motors with Hyundai, reports the Financial Times today.

Chairman Chung Mong-koo left on 2 April for the company’s Alabama plant, a trip that prosecutors said they were surprised not to have been told about. Hyundai said Mr Chung would be away for a week.

Mr Chung Mong-Koo’s son Chung Eui-sun is currently the president of Kia Motor and the components subsidiary Hyundai Autonet. He is one of over 10 Hyundai executives have been barred from leaving the country, and two senior executives have been arrested during the investigation of allegations involving an intermediary, Kim Jae-rok, who has been accused of bribing South Korean government officials to smooth the path of Hyundai’s effective takeover of Kia Motors.

(www.ft.com/autos, 4 April)

Nissan, so far dependent on Toyota for hybrid powertrains, is designing a new electric motor, lithium-ion battery and inverter package of its own, which reportedly may nearly double the acceleration performance of vehicles that run on fuel cells, electricity or hybrid engines when launched in 2009. Nissan’s first hybrid, an Altima saloon, will come first, this year, using Toyota Hybrid Synergy Drive components.

Nissan's electric motor and lithium-ion batteries will be up to 35% smaller and lighter, and 30% cheaper than current hybrid systems, according to an interview granted by Nissan in Japan yesterday; ts inverter, which regulates the electric current used in the powertrain, will be 30% cheaper and 20% smaller, with double the power of current systems.

- The Toyota system-based hybrid Altima will be sold in the US to help Nissan meet CAFE fuel economy standards, limiting its exposure to federal fines, rather than as a potentially profitable model in its own right.

(Source: Kae Inoue in Tokyo - kinoue@bloomberg.net, 4 April)

Toyota has presented a $1 million grant to the Society of Automotive Engineers (SAE) Foundation to support their centennial campaign, ‘Inspiring a New Generation’. Toyota has been a sponsor of the SAE Foundation for the past 14 years, and with this grant has contributed more than $2.5 million dollars to the SAE's A World in Motion programme, a maths and science curriculum for US school students.

DaimlerChrysler has taken action to hedge 7.5% of its 30% stake in the European Aeronautic Defence and Space Company (EADS), as a move to focus on its core automotive business. Today's market value of the 7.5% stake amounts to approximately €2.0 billion. There will be no impact on DaimlerChrysler’s net income in 2006 but as the settlement of the transaction is intended to take place between January and April 2007, the impact of the transaction on net income in the magnitude of around €1 billion will occur in 2007.

DaimlerChrysler and a number of banks have entered into a forward sales agreement on EADS shares. The DaimlerChrysler Group will be lending the shares to the banks which then will place them in the market. The transaction has been prepared in close co-operation with Lagardere SCA, which also intends to reduce its own indirect 15% stake in EADS to 7.5%. On the basis of the existing contractual relationships, the step has been coordinated with all major shareholders of EADS.

Valeo has announced that its micro-hybrid Starter-Alternator Reversible System (StARS) won the 2006 PACE Award in the European Products category. The award, co-sponsored by Automotive News, Microsoft, SAP and the Transportation Research Center, was presented to Valeo at a ceremony held in conjunction with the SAE World Congress in Detroit.

The StARS system features the capacity to stop and then restart the engine immediately and silently, and reduces fuel consumption by 12% on average. This micro-hybrid system is currently available on the Citroën C2 and C3 Stop&Start models.

The European Commission has decided to send a ‘reasoned opinion’ to Finland and a letter of formal notice to Denmark, as the two countries have still not given adequate reasons for having set targets considerably lower than the 2% reference value laid down by the biofuels directive for 2005. A letter of formal notice has also been sent to Luxemburg due to an incomplete biofuel report for 2005, and a reasoned opinion to Italy due to its failure to submit it.

Promoting the use of biofules figures is a top priority in the Commission’s new Green Paper on a European Strategy for a Sustainable, Competitive and Secure Energy Policy.

“Biofuels are the only known substitute for fossil fuels in transport today. They contribute to our security of energy supply, reduce greenhouse gas emissions and create jobs in rural areas. Most Member States are going to great lengths to increase the use of biofuels and I regret that a small number of them have yet to join in on this effort,” said Energy Commissioner Andris Piebalgs.

A new ranking of the world’s brands was announced yesterday by global marketing research firm Millward Brown, part of The Kantar Group, the information and consultancy division of global ad agency WPP. The BRANDZ™ Top 100 Most Powerful Brands study provides brand equity measures for more than 30,000 corporate and consumer brands. The top ten by value (figures in $ million) are:

1. Microsoft - 62,039

2. GE - 55,834

3. Coca-Cola - 41,406

4. China Mobile - 39,168

5. Marlboro - 38,510

6. Wal-Mart - 37,567

7. Google - 37,445

8. IBM - 36,084

9. Citibank - 31,028

10. Toyota - 30,201

Toyota’s ascribed brand value of $30.2bn according to Millward Brown compares to its share capital value of just under $195 billion.

(www.millwardbrown.com)

Activant Solutions, the automotive aftermarket business solutions provider, has launched ‘Business Advisor’, a new internet-based analytics tool that provides factors, parts retailers and suppliers operating in the UK aftermarket with a view of what’s happening across their business.

Business Advisor allows users to view trends and alerts to anticipate issues rather than react to problems revealed by its measurement of customer and product spend trends and sales gaps, together with detailed stock analysis.

Activant has operations in the US, Canada, Ireland and the UK.

(www.activant.com)

The Royal Automobile Club has awarded the Dewar Trophy to Ricardo for ‘outstanding technical achievement’ in the support provided to Bugatti on the design and development of the Dual Clutch Transmission technology (DCT) for the Veyron supercar.

First launched in 1906 and re-established to recognise excellence and innovation in automotive technology after a gap of five years in 2002, past winners include Rolls-Royce, Dunlop, Lucas and Jaguar.

“Ricardo’s Dual Clutch Transmission is a breakthrough in advanced gearbox design that places the company ahead of its larger global competitors,” confirmed John Wood, Dewar committee chairman. “The technology is scaleable and sets a new standard for the smooth continuous delivery of power. Ricardo is a worthy winner and we are delighted to be able to continue celebrating true engineering prowess with the Dewar Trophy.”

The Bugatti Veyron team at Ricardo had to design and manufacture a 7-speed gearbox and transmission control system capable of handling over 1,000 PS over the extended life of a production car, while meeting all the normal Volkswagen standards of reliability and durability.

The Retail Motor Industry Federation (RMIF) has switched on its new member website which has enhanced display and navigation features. Further functionality, including the opportunity for members to have a real-time dialogue with the Federation, will come online over the next few weeks.

Key features will include a unique area for each association, member- and Association-specific forums, online voting, surveys and questionnaires, new member profiles, registration and update functions, and enhanced search facilities for archive material.

The site was built by the RMIF's Web and Group Computer Services team in association with The Windmill Partnership and can be found at www.rmif.co.uk.

John Lewis, Director General of the British Vehicle Leasing & Rental Association said in a news release issued yesterday, “We’re in favour of reducing emissions from trucks – witness our support for the truck Euro IV standard and we’re fully behind efforts to clean up the air for Londoners. What we’re not in favour of is an over-bureaucratic, expensive penalty system to keep some trucks out of London. It seems to us that the proposals from Transport for London (TfL) are aimed more at penalising the polluting truck rather than encouraging truck operators to use the latest green technology.”

The concept of nominating the whole of the Greater London Area (GLA) as a Low Emission Zone strikes the BVRLA as impractical to enforce unless automatic number plate recognition (ANPR) cameras are situated at every point. And the organisation believes that would be a gross waste of taxpayers’ money.

Given the incremental pollution reduction targets CV manufacturers are required to meet across the EU, Mr Lewis argues that the LEZ will only accelerate what is planned to happen with the normal vehicle replacement cycle of 4-5 years.

Transport for London has issued a consultation document on creating a Low Emission Zone covering all 33 London Boroughs. All vehicles over 3.5 tonnes would have to comply with Euro III from 2008 and Euro IV by 2010 or pay a charge to travel in the LEZ. Non-compliant vehicles caught in the zone without paying will face a heavy fine. The zone will operate 24/7.

The BVRLA has joined with other bodies including the Freight Transport Association, Confederation of British Industry and the Road Haulage Association to form a lobby group intent on ensuring that the LEZ, if actually introduced, can operate efficiently, be enforced reasonably and work at marginal cost.

Toshiba America Electronic Components Inc. announced at this week’s Embedded Systems Conference in the US the availability of a new 64-bit RISC processor with integrated graphics and display controller designed for applications that combine general-purpose computing with real-time graphics displays, including driver information systems, car infotainment systems and car navigation systems.

The TX4961XBG-240 processor integrates a TX49/H3 64-bit MIPS-based RISC CPU with a display controller and hardware graphics accelerators.

"The TX4961XBG-240 is Toshiba's first TX49-based product to combine a 64- bit CPU and a graphics display controller with a 2D hardware graphics accelerator and video frame grabber," said Shardul Kazi, a vice president of Toshiba America. "By offloading the graphics, display and video functions to dedicated hardware, the full power of the processor is available for application-specific processing.”

(www.reed-electronics.com/electronicnews/)

The Procurement Forum and The SPICE User Group have been working together with vehicle manufacturers, their assessors and representative bodies to develop a dedicated automotive manufacturing process assessment model, tailored from ISO/IEC 15504, the international standard for process assessment. The result of their endeavours, Automotive SPICE, will be formally launched on 25 April at the Munich IHK (Chamber of Commerce) in the presence of several vehicle manufacturers.

Since more than 85% of the functionality in vehicles is controlled by software, the pressure on automotive software development and target hardware costs is increasing, and the potential recall and safety issues due to electronic systems malfunction are leading vehicle manufacturers to perform supplier software capability assessments, both before and during contract performance.

The benefit of the Automotive SPICE standard will be to avoid suppliers having to face multiple assessments from multiple manufacturers using different models and consuming resources that put additional pressure on delivery times.

The Automotive SPICE™ initiative includes AUDI AG, BMW Group, DaimlerChrysler AG, Fiat Auto S.p.A., Ford Werke GmbH, Jaguar, Land Rover, Dr. Ing. h.c. F. Porsche AG, Volkswagen AG and Volvo Car Corporation.

The 25 April event is organised by the SPICE User Group and The Procurement Forum on behalf of the Automotive SPICE™ initiative and supported by gasq – the Global Association for Software Quality.

(www.automotivespice.com, www.gasq.org)

(Source: www.verivox.de)

US tier one supplier Meridian Automotive Systems, Inc. has filed its Plan of Reorganization with the United States Bankruptcy Court for the District of Delaware, less than 11 months after in filed for Chapter 11 protection. Richard E. Newsted, Meridian's President and CEO, said, "Filing a Plan in less than eleven months since entering Chapter 11 is a major accomplishment and clearly reflects the strength of our company and our efficiency with respect to our restructuring efforts."

AUTOMECH AKHBAR EL YOM 2006, the eleventh Pan-Arab/African car and automotive aftermarket show, is to be held, as in previous years since its first launch in 1996, at the Cairo International Fair Ground from 1-5 June, 2006.

The show attracted 285 exhibitors from 25 countries and 238,000 visitors (including15,000 trade visitors from Egypt and other countries in the region) in 2005. Among the former were some of the vehicle manufacturers accounting for over 18 vehicle assembly plants now established in Egypt. The show is organized by ACG-ITF in partnership with Akhbar El Yom Establishment, an Arab media corporation. In 2006, visitors are expected to reach about 250,000 and exhibitors to reach about 300.

(www.ameinfo.com)

The inauguration of Renault’s EMC (electro-magnetic compatibility testing) unit at the Aubevoye Technical Centre – takes place today. The new unit houses the facilities required for the validation of electronic equipment in vehicles. Given the development of on-board equipment of this type, the unit has three goals: to ensure the immunity of vehicles to electromagnetic interference from external sources, to control electromagnetic emissions from vehicles and, finally, to measure the radiation performance of radio aerials.

The unit will commence work in May on applications for the successor to the Laguna.

Occupying an area of 1,800 m2, the EMC houses three Faraday cages grouped around a remote

control room, designed to be impervious to electromagnetic interference from

external sources. A radio frequency test chamber is dedicated to testing the radiation performance of radio aerials.

Representing an investment of €10 million, the EMC unit will employ a team of 30 researchers, engineers and technicians.

Toyota has finalized the consolidation of its North American engineering and manufacturing operations. The new company, which was announced in December 2004, is called Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA). Atsushi Niimi, Chairman and CEO of TEMA, will also continue as Senior Managing Director of Toyota Motor Corporation at Toyota's global headquarters in Japan.

Cooper-Standard Holdings Inc., the parent company of Cooper-Standard Automotive Inc., the body sealing, fluid handling, and NVH control parts supplier, has reported sales of $1.83 billion and net income of $8.8 million for 2005.

Unaudited results show full-year 2005 sales were $1,827.5m, down from $1,863.6 in 2004. Earnings before taxes were down to £11.2m from $111.2m a year earlier, and net profit down to $8.8m from $78.8m.

The drop in net income was attributed mainly to interest cost related to financing the acquisition of the Cooper-Standard Automotive business in 2004 and the subsequent amortization of intangibles. The company launched products for vehicles during 2005 including the British-built Jaguar S-Type and XJ, Land Rover Discovery and Honda Civic.

Mazda Motor Corporation announced today that the Chinese government has approved Mazda's investment in Changan Ford, the joint venture between Changan and Ford. The restructured company has been renamed as Changan Ford Mazda Automobile Co., Ltd. (CFMA). The three parties recently announced the start of Mazda3 production at Changan Ford's Chongqing Plant.

Changan, Ford and Mazda hold 50 percent, 35 percent and 15 percent shares in CFMA, respectively. The 15 percent shares owned by Mazda in CFMA were transferred by Ford from the company's 50 percent shareholding originally held in Changan Ford.

PSA Peugeot Citroën and Dongfeng Motor Group are expanding their industrial plan for their joint subsidiary Dongfeng Peugeot Citroën Automobiles (DPCA) to reflect their growth in China. After doubling capacity at the Wuhan plant, which is being stepped up to 300,000 units a year in 2008, the DPCA board decided on April 1 to look for a new production site. The exact location and schedule for the new facility will be announced within the next few months.

DPCA also intends to strengthen its product plan, produced on the two new PSA platforms used in China since mid-2004, as well as platform 3, which will be introduced by the end of the decade for the production of upper mid-range models. This will eventually enable DPCA to offer a range of vehicles from compact cars to large executive saloons. Production of nine models is scheduled to begin at the Wuhan plant between 2006 and 2009, including three new models this year.

In 2005, DPCA sales rose by 57.5% to 140,400 units, in a market that expanded by 24%. The 2006 DPCA sales target has been set at over 200,000 units.

PSA Peugeot Citroën has just created Peugeot Citroën China Automotive Trade Company Limited, a wholly-owned subsidiary which will import additional Peugeot and Citroën models not produced in China.

Negotiations on the future of the Dutch assembly facility NedCar, between the NedCar Supervisory Board, NedCar management and the social partners, have yet to reach agreement, and will be continued on April 11th, reports Mitsubishi Motors, which has asked NedCar to draft a restructuring plan for a one-shift operation, based on a current production volume of the Mitsubishi Colt, in the context of DaimlerChrysler’s planned end of production of the smart forfour, which shares the Colt's platform.

Mitsubishi Motors Corporation confirmed its continuing commitment to produce the current Mitsubishi Colt at NedCar without any change.

Binz, the British manufacturer of coach-built limousines and hearses, has won an award from the Hannover-based iF Design Forum for its five-seat hearse.The iF Design Forum makes awards annually and participants are judged from over 1,600 entrants in a series of different categories. Binz entered the Transportation category with its five- seat hearse and was one of 16 companies to be awarded an iF Design Award in the sector in 2006.

Peter Smith, CEO of Binz (UK) Ltd, says, "The iF Product Design Award is a highly prized international endorsement of our product, and with it goes a registered trademark which we are permitted to use for our company.”

The Binz five-seat "Omniel" hearse is based on the Mercedes-Benz E-Class, stretched by about 1,200mm to a total length of 6,100mm.

Following the budget’s changes to Vehicle Excise Duty charges and bandings, leasing firm Lombard Vehicle Management is guaranteeing to cover the additional costs for existing customers’ vehicles which the majority of fleets would otherwise have incurred as a result.

Although bandings for vehicles producing low CO2 emissions have been reduced in VED liability and two remain unchanged, the F banding into which a wide range of popular vehicles fall has been increased by £25 a year, and a new G category for vehicles producing higher CO2 emissions has been created. This has a £210 VED liability, £45 more than previous highest banding. The lowest banding has a zero liability but is applicable only to all-electric vehicles.

Although the move is widely accepted as being targeted at SUVs and ‘gas-guzzlers’, many larger family vehicles and compact vehicles with larger engines - especially those with petrol engines and automatic transmissions - will suffer. Examples include the Honda Accord Tourer 2.4i V-TEC Ex, Vauxhall Vectra 3.2i 24v V6 5dr and BMW 130i, and the manual Fiat Stilo 2.4 20v. In addition many MPVs will incur higher costs. All diesel-engined vehicles are subject to an additional duty of between £5 and £10.

The result, says Lombard, is that the model mix in a typical fleet will lead to an overall increase in costs, with around 220,000 vehicles being affected in all. It is estimated that additional revenue of close to £4 million will be raised from fleets during 2006.

The Sheffield-based nCode International will be launching its new fatigue analysis solution, ICE-flow DesignLife, at this year's Automotive Testing Exhibition in Stuttgart. The new software is the first fully integrated CAE and Test package for advanced durability engineering and has been found, says nCode, to reduce key areas of fatigue analysis development time by as much as 90 percent.

nCode will be demonstrating its latest solution at the Automotive Testing Exhibition in Hall 4, Stand 4428 from 9 to 11 May.

(www.ncode.com)

The OFT launched a market study yesterday to look in depth at the payment protection insurance (PPI) sector. The study follows a super-complaint from Citizens Advice (CitA) to which the OFT responded on 8 December 2005. PPI is applied to a number of credit products including mortgages, loans (including car loans) and credit cards and protects a borrower's ability to keep up the payments on the loan in case of accident, sickness or unemployment, usually for 12 months or sometimes longer. Around 6.5 to 7.5 million policies are taken out each year, generating premium income estimated in 2003 at £5.4 billion.

The OFT response to the super-complaint identified a number of issues which pointed to the sector not working well for consumers and which indicated the need for a more detailed examination.

These issues were:

- Consumers face difficulties in getting information they need about alternative suppliers and the information available is often too technical to be understood easily

- There are high costs or other barriers to entry for stand-alone PPI providers

- There is a wide degree of variation in pricing in the sector

- Gross profit margins appear high – PPI claims ratios are low compared to other general insurance products.

The market study will examine these issues in more detail and will also look at:

- The relationship between the various players who supply PPI (lenders, insurers, intermediaries) and how this affects the sector

- How the product is sold to consumers and what influences their choices

- Consumers' experiences of making claims

- The impact exclusions have upon consumers' ability to shop around

Consumer awareness and understanding of exclusions.

The market study gives OFT the opportunity – which it did not have during the super-complaint - to look more carefully at the outcomes of the Financial Services Authority (FSA) thematic work on PPI, and the Competition Commission’s work on store card PPI, and assess the impact of their work on the sector. Both have played a key role in influencing the direction of the OFT's work, and the OFT will continue to work closely with the FSA in this area. The study will look at the scope for a coordinated strategy by the OFT and FSA for regulating PPI and related credit products.

The OFT will consult widely with the industry - a business survey will be sent out shortly to lenders, insurers and intermediaries. A detailed survey of consumers will also be carried out.

The OFT expects to publish its report by the end of 2006.

IRTEC, the accreditation scheme for commercial vehicle technicians, will launch a new licence scheme for advanced and master commercial vehicle technicians, a facelift of the accreditation scheme and new a website on 25 April at the CV Show at the Birmingham NEC.

A reception to celebrate the new IRTEC scheme will be held at the Hilton Birmingham Metropole on 25 April with Des Evans, MD of MAN Trucks, Phil Moorhouse, MD of the CV rental firm Northgate Holdings plc and Christopher Macgowan, Chief Executive of the SMMT and Chairman of the Skills Accreditation Task Force, as speakers.

(www.aftermarketnetwork.com)

The Chinese car manufacturer Geely, which importers hope to launch into European and US markets next year or in 2008, has signed a deal in Malaysia whereby 10,000 units a year of a US$5-6,000 car will be produced in the country, with initially 40% local content. About 80% of production will be exported to other Asian markets.

This first Malaysian-assembled model is to be followed by a second, higher-priced model, which will increase local content to 60% and bring Geely’s assembly volume in the country to around 30,000 units a year.

Geely’s global volume target is expected to reach 2m units by 2015, according to a report in Le Figaro of 1 April.

The reported deal is the first of its kind to be announced following last month's Malaysian Government announcement of a new automotive industry policy, aimed at easing the country's existing manufacturers into a less protected trade environment in the ASEAN region.

The German motorists club ADAC’s Eco-Test 2006 programme, which tested 109 vehicles, showed hardly any change in the fuel consumption and particulate emissions performance compared to the previous, 2003 test programme, reported the German paper Die Welt am Sonntag on 2 April. ADAC reportedly concluded that manufacturers will have difficulty in meeting their stated commitment to reduce average fleet carbon dioxide emissions to 140 g/km by 2008.

A report in the German industry paper Automobilwoche says Helmut Becker, the former owner of the German multi-franchise car dealer Auto Becker, has been appointed as president of a new lobby group seeking to represent non-franchise car dealers – The European Car Dealers Association, or ECDA.

The body has been established in Cologne by Ansgar Klein, the head of a federal German association of independent dealers, the Bonner Bundesverbands freier KfZ-Händler. Its aim is to assist a membership, to be drawn from across different EU member states, in matters such as cross-border trade and legal issues. The grouping is to be represented in Brussels by the legal practice Scott Crosby. The acronym ECDA is also in use by a bicycle trade group, the European Cycle Development Agency.

(Automobilwoche, 27 March)

Continental AG, Hannover, has signed an agreement to acquire the worldwide automotive electronic business of Motorola, Inc, for $1 billion.

In 2005, Motorola's automotive electronics business has generated profitable annual revenues of about $1.6 billion, of which more than two-thirds derive from sales in North America. The business employs around. 4,500 employees at its main production and engineering facilities in the USA, Mexico, France and China, producing electronic control units for power trains, chassis control and interior applications, and embedded telematics products.

The transaction is expected to be completed in the first half of 2006, subject to clearance from competition authorities and other conditions.

The European Commission has cleared, under the EU Merger Regulation, the proposed acquisition by the Japanese company Sumitomo Electrical Industries Ltd of Volkswagen Bordnetze GmbH, a VW-Siemens joint venture manufacturer of wiring harnesses. The Commission concluded that the transaction would not significantly impede effective competition since there are only limited overlaps between the merging parties, who will continue to face strong competition from other suppliers.

The quoted automotive logistics group AutoLogic has agreed terms with its lenders whereby an existing £65 million facility dating from 1st May 2001 will be refinanced on 30th April with a combination of a revolving credit facility of up to £38 million with GE Commercial Finance Limited and a £27.5 million mezzanine facility with the original syndicate of banks led by The Royal Bank of Scotland and Lloyds TSB.

The revolving credit facility provides the group with a three-year revolving credit facility of up to £25 million at an annual interest rate of 1.25% above the UK base rate, a ten year term loan facility of up to £8 million at the same rate and a three year cashflow facility of up to £5 million at an annual interest rate of 2% above base. The Revolving Credit Facility is secured by cross guarantees and debentures over the UK group’s assets.

AutoLogic announced last month that ithad entered into a conditional agreement for the sale of its subsidiary Walon France to the latter’s management team, for €12m.

In a US light vehicle market down 2.9% year on year last month, Land Rover dealers reported record sales for March and the first quarter. Sales totalled 4,153 for the month (up 39%) and 11,299 for the quarter (up 34%). March was the sixth consecutive month of record sales for Land Rover. Jaguar sales went in the opposite direction, however, down 47.4% in March at 1,866 and down 41.2% for the first quarter, to 8,707 units.

PAG parent Ford’s group sales as a whole were down 5% in March and 3% in the first quarter, at 291,146 and 740,838 units respectively. GM sales totalled 365,375 new cars and trucks in March, down 14% y-o-y; car sales were down 22%, and truck sales down 9%. GM's retail sales in March were down 17% and fleet sales down 5%.

"March sales were solidly in line with the targets established in our U.S. turnaround plan," said Mark LaNeve, GM North America vice president, Vehicle Sales, Service and Marketing. "We knew that comparisons to a year ago would be difficult because of high daily rental sales and expensive incentives last March.”

Toyota reported its best-ever US monthly sales, of 217,286 units, in March, up 6.9% year-on year. Its car sales totalled 117,299 units, an increase of 0.6% while light truck sales were up 15.5% at 99,987 units. Honda also recorded an increase in sales, of 1.2% y-o-y, while Nissan sales were down 3%.

General Motors has entered into a definitive agreement to sell a 51% controlling interest in General Motors Acceptance Corp. (GMAC) to a consortium of investors led by Cerberus Capital Management, L.P., a private investment firm, and including Citigroup Inc., and Aozora Bank Ltd. GM expects to receive approximately $14 billion in cash from this transaction over three years, including distributions from GMAC.

The transaction, says GM’s statement, strengthens GMAC's ability to support its automotive operations, improves GMAC's access to cost-effective funding, provides significant liquidity to GM and allows GM to continue to participate in the profitability of GMAC over the long term through its 49% stake.

The GM Board of Directors approved the sale in a special meeting on 2 April which followed extensive consideration of this transaction and alternative strategies over the past several months.

Speaking for the GM Board, Presiding Director George Fisher stated, "This transaction along with the other progress GM has been making on its turnaround plan, is an important milestone. While there is still much work to be done, the GM Board has great confidence in Rick Wagoner, his management team and the plan they are implementing to restore the company to profitability."

The transaction is subject to a number of U.S. and international regulatory and other approvals. The companies expect to close the transaction in the fourth quarter of 2006.

GMAC Chairman and CEO Eric Feldstein, who will continue to lead the company after the equity sale, said, "With improved access to cost-effective funding, we will be able to provide more competitive financing to promote GM vehicle sales and to re-establish our historic trend of profitable growth across all our business sectors."

As part of the transaction, GM and GMAC will enter into a number of 10-year agreements under which GMAC will continue to support GM's automotive operations.

The $14 billion in cash that GM is to receive as part of the transaction includes $7.4 billion from the Cerberus-led consortium at closing and an estimated $2.7 billion cash distribution from GMAC related to the conversion of most of GMAC and its U.S. subsidiaries to limited liability companies. In addition, GM will retain about $20 billion of GMAC automotive lease and retail assets and associated funding with an estimated net book value of $4 billion that will monetize over three years. GM also will receive dividends from GMAC equivalent to its earnings prior to closing, which largely will be used to fund the repayment of various intercompany loans from GMAC.

As a result of these reductions, GMAC's unsecured exposure to GM is expected to be reduced to approximately $400 million and will be capped at $1.5 billion on an ongoing basis.

GM and the consortium will invest $1.9 billion of cash in new GMAC preferred equity -- $1.4 billion to be issued to GM and $500 million to the Cerberus consortium. GM also will continue to receive its 49 percent share of common dividends and other value generated by GMAC.

GM will take a non-cash pre-tax charge to earnings of approximately $1.1 billion to $1.3 billion in the second quarter of 2006 associated with the sale of 51 percent of GMAC.

The GMAC board of directors will have 13 members - six appointed by the consortium; four appointed by GM; and three independent members. GMAC will continue to be managed by its existing executive management.

The new business just officially opened by GKN in China - 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%.

The new GKNZ plant, which has been established on a greenfield site in Mengzhou City, Henan Province in the People’s Republic of China, will produce truck engine cylinder liners. 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, was among the 300 hundred-plus attendees at the opening. He said: “A strong presence in China is critical to GKN’s continued development and this new company with its brand new manufacturing facility is another step forward in our strategic growth in this important market. 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.”

The US-based wheel manufacturer Hayes Lemmerz International, Inc. has concluded an agreement with its lending group to amend its $625 million senior secured credit facility, modifying certain financial covenants to provide more financial flexibility.

In an update of its fiscal 2005 earnings guidance issued on December 8, 2005, the Company said last week it now expects revenue of approximately $2.3 billion for the full fiscal year ended January 31, 2006, in line with previous guidance of $2.2 billion to $2.3 billion. Adjusted EBITDA, excluding certain non-cash charges for impairment of goodwill and long-lived assets, is expected to be approximately $185 million, in line with its previous guidance of $180 million to $190 million. Capital expenditure for the year is expected to be approximately $125 million, slightly lower than previous guidance of $130 million.

Hayes Lemmerz recently announced consolidation of its North American and International Wheel Groups to create a new Global Wheel Group and the closure of its Huntington, Indiana facility. The company also said that it will be making further organizational and employee wage and benefit changes in North America, and expects combined cost savings from all of these actions of at least $35 million annually.

According to a report summarising trends recorded by automotive services group Network Automotive in the first quarter of 2006, as new and used car sales continue to slow, many franchise car dealers in Britain are not even attempting to achieve sales targets which they believe they have no hope of reaching. Many are finding the whole situation very discouraging but most are taking some action to fight back against the problem. The availability of manufacturers' budgets to help with incentives that could alleviate the problem is limited, and most dealers are also reluctant to commit to any long-term spending that could bring about structural improvements.

As a result of these factors, Network Automotive believes that further reductions in new car prices during the next quarter and the rest of 2006 are unavoidable as part of the quest to encourage customers back into the showroom, and this will have an inevitable knock-on effect on nearly new and used car prices.

One developing trend is that much retail new car competition seems to be occurring more on a local basis, with customers looking to get the best deal on a type of car from a number of dealers, rather than wanting a particular model and trying to buy this for a good price. This is perhaps an indication of a "bargain hunting" mindset that can only make life tougher for dealers.

Many dealers are said to be viewing a focus on aftersales, parts and rental as their best chance of achieving profitability in 2006.

As Americans become increasingly interested in fuel economy and global warming, they are beginning to make choices about the vehicles they drive based on fuel economy and to a lesser degree emissions. But many of those choices aren't actually the best in terms of vehicle lifetime energy usage and the cost to society over the full lifetime of a car or truck, according to a study by CNW Marketing Research Inc, which concludes that the lifetime energy consumption of a hybrid vehicle exceeds that of a comparable non-hybrid vehicle.

The firm spent two years collecting data on the energy necessary to plan, build, sell, drive and dispose of a vehicle from initial concept to scrappage. This includes such minutia as plant to dealer fuel costs, employee driving distances, electricity usage per pound of material used in each vehicle and other variables.To put the data into understandable terms for consumers, it was translated into a "dollars per lifetime mile" figure. That is, the energy cost per mile driven.

The most energy expensive vehicle sold in the US in 2005 was found to be DaimlerChrysler’s Maybach at $11.58 per mile; the least expensive, Toyota’s Scion brand xB model, at $0.48 cents per mile.

The study concludes that driving a hybrid vehicle costs more in terms of overall energy consumed than comparable non-hybrid vehicles.

For example, the Honda Accord Hybrid has an Energy Cost per Mile of $3.29 while the conventional Honda Accord is $2.18. Put simply, over the "Dust to Dust" lifetime of the Accord Hybrid, it will require about 50 percent more energy than the non-hybrid version, according to CNW.

One of the reasons hybrids cost more than non-hybrids is the manufacture, replacement and disposal of such items as batteries, electric motors (in addition to the conventional engine), lighter weight materials and complexity of the power package.

And while many consumers and environmentalists have targeted SUVs because of their lower fuel economy and/or perceived inefficiency as a means of transportation, the energy cost per mile shows at least some of that criticism is misplaced.

For example, while the industry average of all vehicles sold in the U.S. in 2005 was $2.28 cents per mile, the Hummer H3 (among most SUVs) was only $1.949 cents per mile. That figure is also lower than all currently offered hybrids and Honda Civic at $2.42 per mile.

"If a consumer is concerned about fuel economy because of family budgets or depleting oil supplies, it is perfectly logical to consider buying high- fuel-economy vehicles," says Art Spinella, president of CNW Marketing Research, Inc. "But if the concern is the broader issues such as environmental impact of energy usage, some high-mileage vehicles actually cost society more than conventional or even larger models over their lifetime.

"We believe this kind of data is important in a consumer's selection of transportation," says Spinella. "Basing purchase decisions solely on fuel economy or vehicle size does not get to the heart of the energy usage issue."

The goal of overall worldwide energy conservation and the cost to society in general -- not just the auto buyer - can often be better addressed by being aware of a car or truck's "dust to dust" energy requirements, he said.

"We hope to see a dialog begin that puts educated and aware consumers into energy policy decisions," Spinella said. "We undertook this research to see if perceptions (about energy efficiency) were true in the real world."

For more information, contact Art Spinella of CNW Marketing Research, Inc., +1-541-347-4718 or Mailroom@cnwmr.com

(www.cnwmr.com/)

The Yorkshire-based franchised dealer group Nidd Vale Motors has launched a new business division to sell non-OE car parts from Lucas, Champion, Bosal and Automotive Products supplied by the wholesale distributor XParts to local independent service and repair outlets. 'We Sell Car Parts' has been awarded the X-Part franchise for North Yorkshire and will operate from the company's aftersales centre in Harrogate. Nidd Vale operates Vauxhall, Saab, Mazda and Seat dealerships.

Keeping costs down is the biggest challenge facing the North American automotiv