Industry News

• IRL Begins Ethanol Test Programme
• 2005 PRI Show Largest Ever
• Automotive Academy ‘making great strides’ – SMMT 2005 survey
• OFT to carry out a market study into payment protection insurance
• Jaguar and Land Rover win first Women in Science Engineering and Technology Award
• PSA Peugeot Citroën to expand its Trnava plant in Slovakia
• Ascari to produce second model
• Visteon announces plans to replace short-term credit facility
• Ford declares unchanged first quarter dividend
• Lexus tops J.D. Power’s third US customer retention survey
• TfL retires Routemasters
• New MD for Motorworld accessories chain
• European Parliament adopts new greenhouse gas reduction targets
• Michelin takes action against counterfeit truck tyre distributors
• European Commission proposes new biofuels action plan
• EU updates rest times regulations for truck drivers

• Jaguar XK’s pop-up bonnet wins Prince Michael International Road Safety Award
• US firm launches rooftop solar panels for hybrids
• MG Rover Task Force 6-month report: collapse cost around 9,000 jobs
• Ford North America restructuring could cut 25,000-30,000 jobs – Detroit News
• GM confirms discussions on board representation with Tracinda
• Daihatsu Terios successor will be also supplied under Toyota brand
• End of the road for Volga
• Kia UK appoints new sales and operations directors
• California ‘NEV’ use surveyed
• Siemens VDO buys American Electronic Components assets
• Frost & Sullivan forecasts diesel penetration of North American market
• Japanese equity fund to sell $1.1bn MMC stake
• Toyota plans domestic fuel cell electricity supply development

• Monza Management Company Appeals Against Noise Ruling
• SMMT: November’s 8.9% drop in CV registrations ‘reflects business uncertainty’
• J.D. Power Automotive Forecasting reports November European car registrations
• GM board elects Fritz Henderson as vice chairman and CFO
• BOC Foundation supports hydrogen fuel cell urban concept car
• SMMT plans its own service and repair code
• ADP buys Kerridge
• Ford board meets to decide plant closures
• MG Rover dealers win Euro 4 derogation for remaining unsold stock
• British International Motor Show 2006; 20-30 July 2006, ExCeL London
• IMI wins two International Trade Awards
• Downward SUV price trend set to continue with 25 new launches – EurotaxGlass’s
• First 1,000 light vehicle technicians sign up for ATA skills tests
• mxData extends mobile phone traffic data to major motorways
• First ‘gay leasing company’ launched
• Inchcape appoints new group finance director
• China to be this year’s third largest vehicle producer with 5.6m units

• Private buyers bring UK's November new car market down 7.9%
• Automotive sector headlines from 2005 Pre-Budget Report
• SMMT welcomes pre-budget statement’s focus on stability and streamlined regulation
• JAMA publishes update on Japanese manufacturers in Europe
• Michael Cole appointed Toyota GB operations director
• Nationwide Autocentres features in ST 100 fast growing companies
• Motoreasy.com survey: motoring habits little affected by fuel prices
• Experian wins contract as Volkswagen Financial Services' data supplier
• Former MG Rover bidder claims €1bn in funding to restart Longbridge production
• AMR Research: cruise control accounts for biggest share of 16.5m US 2005 US recalls
• BorgWarner Transmission Systems breaks ground for new French factory
• Range Rover Sport named BB Top Gear SUV of the Year
• Cooper-Standard Automotive to acquire ITT Industries' fluid handling systems
• Toyota to expand US capacity with Fuji Heavy
• Lookers persists with pursuit of Vardy offer

• US waits for Ford plant closure announcement
• Vardy board recommends raised Pendragon bid - report
• “Environmental lobby ignoring the bigger picture on CO2 emissions” - SMMT
• Bugatti Veyron heads Ricardo transmission technologies on show at CTI-Symposium
• Unipart roadshows support BSI Automotive Kitemark and technician accreditation
• Hyundai-Kia ‘plan 4.47m sales for 2006’
• Just Car Clinic to open Humberside collision repair training facility
• China’s vehicle exports exceeded imports for first time in January-October
• Nippon Paint and Nissan launch self-repairing paint surface treatment
• New national Car Sales Director appointed at ATS Euromaster
• Poll shows car buyers prefer low everyday prices to other sales incentives
• Foray’s Ford National Clearance Centre wins Green Apple Award
• New mobile phone-based system gets Thatcham Category 5 accreditation

On Wednesday the Andretti-Green Racing and Rahal-Letterman Racing Indy Racing League teams began a test programme that will eventually lead to the adoption of renewable ethanol as the series official fuel in 2007.

The testing at the Homestead-Miami Speedway in Florida is in preparation for the 2006 IRL season in which all competitors will be obliged to run a 90% methanol/ 10% ethanol blend ahead of using 100% ethanol in 2007.

Phil Casey, the Indy Racing League's senior technical director said, “"The transition between methanol and ethanol in our cars should be very smooth.

"Our cars won't sound differently, smell differently or run differently than they have in the past. There will be a seamless transition from methanol to ethanol in our cars."

(Source: IRL)

The organisers of the American Performance Racing Industry Trade Show say that last week’s 2005 exhibition at the Orange County Convention Centre in Orlando, Florida set new records.

According to PRI’s figures more than 1400 exhibitors occupied 3950 both spaces for the three-day trade-only motorsports industry show, which was being held in Orlando for the first time having outgrown its previous venue in Indianapolis. In the Orange County Convention Centre the PRI Show occupied 800,000 square feet with displays of racing components, technology and engineering.

Steve Lewis, producer of the PRI Trade Show, said, 'Even with the dramatic increase of aisle space, there was not a significant visual dilution of attendee traffic. The aisles were full all three show days even at the Saturday 5:00 p.m. closing.”

(Source: PRI)

The Society of Motor Manufacturers and Traders' latest automotive industry survey shows that the Academy is establishing itself as a vital organisation in raising skills, competitiveness and productivity in the sector. In the SMMT survey – 'Automotive manufacturing – the industry perspective' – 66 per cent of companies knew about the Academy – an increase of 34 per cent in the last 12 months.

The Academy was identified as being key to addressing the UK's skills gaps in automotive manufacturing by 89 per cent of respondents. Looking to the future, 56 per cent of respondents said that the Academy would have a direct influence on their business in the coming years.

The OFT is to carry out a market study to look in depth at the PPI sector, after consideration of a super-complaint from Citizens Advice (CitA), which will be launched early in 2006.

The precise timing and scope of the market study will be decided in early 2006 after the Competition Commission has reported on store cards and associated PPI. The findings and outcomes from the CC's work, and also the Financial Services Authority's thematic work on PPI, will play a key role in influencing the direction of OFT's work.

PPI is applied to a number of credit products including mortgages, loans (including motor finance), credit and store cards, and protects a borrower's ability to pay the loan in case of accident, sickness or unemployment. Around 6.5 to 7.5 million policies are taken out each year and it was estimated in 2003 that £5.4 billion in premiums were generated.

The OFT has decided to carry out a market study because a number of factors, notably, the size of the sector, the complexity of the product coupled with limited understanding on the part of the customer, and the way in which the product is sold (as a secondary purchase to the credit product) point to a potentially high risk of consumer detriment.

The OFT has identified a number of issues which point to the sector not working well for consumers and which indicate the need for a more detailed examination:

- Consumers face difficulties in respect of (a) gaining information they need about alternative suppliers and (b) the technical nature and/or lack of transparency of the information available to them

- 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 - although there is a lack of information on profitability, an indication of high profitability is provided by claims ratios – PPI claims ratios are estimated to be 15 – 20 per cent, which is low compared to other general insurance products: for example, claims ratios for motor insurance are 74 per cent and household insurance are 55.2 per cent.

The FSA regulates PPI, although the OFT licenses businesses offering credit or acting as credit brokers. The study will also consider the scope for a more joined-up strategy for regulating PPI and consider whether guidance can raise standards and, if so, where that guidance should be targeted.

Jaguar and Land Rover were this week named as winners of the first Women in Science Engineering and Technology (SET) Award at the Working Families Employer of the Year Awards in London. The accolade presented by Meg Munn MP, Parliamentary Under Secretary of State for Women and Equality, recognises industry-leading practices in relation to gender equality in the workplace. The judges' decision was based on the company's proactive plans to recruit, retain and reward women in automotive engineering and for its “excellent understanding and communication” of the business case for gender diversity.

Ascari, the Banbury-based builder of the KZ1 ‘supercar’, now has a second car in development – the A10, a road going version of Ascari’s Spanish GT race car. Currently undergoing testing in advance of its summer 2006 launch in a volume of 50 units, the 220bhp A10 will weigh 1280kg and carry a price tag of around £350,000. Power will come from a 600bhp 5-litre V8 engine, with a six speed manual as standard and a sequential gearbox available as an option, and a six-piece carbon fibre body with fixed rear wing.

PSA Peugeot Citroën has advised the Slovak authorities that its Trnava plant has been selected as the future site for a new manufacturing unit with a potential production capacity of 150,000 vehicles per year.

The additional production capacity will be dedicated to an entirely new vehicle to be marketed alongside existing models, of which no details have yet been offered. The new car, despite its completely different design concept, will be built on the same platform as the plant's other vehicles, and will be added to the PSA Peugeot Citroën product offer in 2010.

The project will require an investment of approximately €350 million in Slovakia and create some 1,800 jobs. The Trnava plant’s foundations were laid in June 2003. In the start-up phase, the facility will, in 2006, make platform 1 vehicles (small cars), with an annual capacity of 300,000 units on three shifts and a workforce of around 3,500 people.

Visteon Corporation intends to replace its existing $300 million short-term secured revolving credit facility, which expires next week with a new 18-month secured term-loan. The new transaction is expected to close by mid-January 2006 and will be for up to $300 million. Visteon has appointed JPMorgan Securities and Citicorp as lead arrangers.

Visteon also intends to seek amendments to the financial and other covenants contained in its existing $775 million multi-year revolving credit facility and its $250 million delayed draw term loan, both of which expire in June 2007, to provide flexibility as the company implements its restructuring plans.

The Board of Directors of Ford Motor Company yesterday, after its two-day board meeting to discuss plant closure and redundancy plans as parts of a recovery plan, declared a first quarter dividend of 10 cents a share on the company's Class B and common stock - the same level of dividend paid in the fourth quarter of 2005.

Lexus leads the industry in the US market in retaining the highest percentage of new-vehicle owners, according to the J.D. Power and Associates 2005 Customer Retention Study released this week. The study, now in its third year, measures the percentage of new-vehicle buyers and lessees who replace a vehicle that was previously purchased new with a new vehicle of the same make. With a 3.5 percentage-point increase from 2004, Lexus ranks highest, retaining 63.0 per cent of its customers. The industry average is 49.6 per cent.

Lexus is followed in the rankings by Toyota (62.6%), Honda (59.9%), Chevrolet (57.3%) and Hyundai (56.3%), respectively. Although Suzuki retains just 28.6 percent of its customers, the brand records the greatest improvement, increasing its retention rate by 38 percent from 2003, the inaugural year of the study. Honda’s Acura premium brand is also enjoying strong increases in retention rates, improving 25 per cent from 2003 to retain 45.7 per cent of its customer base in 2005.

The study finds that quality and customer service experiences – both surveyed separately by J.D. Power - play key roles in influencing customer retention. About 23 per cent of respondents did not buy a vehicle from the same brand because they felt that too many things went wrong with their previous vehicle. The brands with the fewest customers leaving for this reason also performed relatively well in the J.D. Power and Associates 2005 Vehicle Dependability Study, which measures problems experienced during the first three years of ownership.

Experiences with the dealer service and sales departments also have an important impact on whether customers return to the brand when they are in the market to buy a replacement vehicle. Nameplates performing well in the firm's 2005 Customer Service Index (CSI) Study, which measures satisfaction with the service department, and the 2005 Sales Satisfaction Index (SSI) Study, which measures satisfaction during the new-vehicle sales process, tend to have relatively few customers who cite poor service as a reason for defecting to another brand.

Transport for London is retiring its remaining Routemaster double decker buses from its fleet today, 9 December, after they have helped carry around six million passengers along London’s 700-plus routes.

Designed by Douglas Scott, also responsible for the shape of Agas and telephone boxes, the Routemaster was developed as a London-specific and went through four prototypes before going into series production in 1959. It began to give way to alternatives when driver-only operation was legalised in 1967.

The last Routemaster was built in 1968, although many were refurbished in the 1990s. Decommissioned buses can be acquired by enthusiasts for £5,000-£10,000. (BBC)

Car accessory retailer Motor World has promoted operations director David Hudson as managing director following his predecessor’s retirement.The company describes itself as the UK’s largest independent car parts and accessories retailer with 237 stores, and annual sales of £57m.

New draft energy legislation targeting a 30 per cent reduction in greenhouse gas emissions by 2020 and one of up to 80 per cent by 2050 has been adoped by MEPs, advancing on the EU’s current target of an 8 per cent reduction by 2012. The new planned legislation calls for fiscal incentives and tougher regulation of transport emissions.

Among the latter are proposed an EU-wide maximum speed limit, more subsidy of public transport systems, and an increase in biofuels use to 10 per cent of all fuels from the existing EU target.

The British Government last month announced its own Renewable Transport Fuels Obligation policy, targeting 5 per cent biofuels supply by 2010.

Sales representatives from Michelin's Truck Tire Division have detected Asian replicas of Michelin tyres in the European market, and the company has warned over 5,000 distributors of the risks of selling counterfeit goods, and taken legal action against one European importer of truck tyres from Asia copying the Michelin tread pattern. Michelin has also informed the EC of its concern.

This week the European Commission adopted a detailed action plan designed to increase the use of energy from forestry, agriculture and waste materials in three sectors: heating, electricity and transport.

For transport biofuels, the measures include promotion of “biofuels obligations” such as that announced by the British Government last month, through which suppliers include a minimum proportion of biofuels in the conventional fuel they place on the market.

In 2006, the Commission will bring forward a report in view of a possible revision of the biofuels Directive. This report will examine the implementation of the Directive in Member States. The EU market share is currently 0.8% which leaves little prospect of achieving by 2010 the target of 5.75% that was set in 2003 for the EU as a whole. The UK’s planned RTFO sets a 5 per cent target for 2010.

The EC plan includes reviews of how fuel standards could be improved to encourage the use of biomass for transport. The Commission estimates that the measures in the plan will more than double the use of biomass without increasing the intensity of agriculture or significantly affecting domestic food production. It forecasts that this will reduce greenhouse gas emissions by 209 million tonnes CO2–equivalent per year; provide direct employment for 250-300 000 people; and reduce reliance on imported energy from 48% to 42%.

(europa.eu.int/comm/energy/res/biomass_action_plan/index_en

The European Parliament and the Council agreed this week on draft legislation to improve driving times and rest periods for professional drivers and step up checks on lorries. Drivers will have at least two full days off every two weeks and a longer rest period each day.

The new rules will more nearly harmonise the practices of the different EU Member States. Member States will still be free to apply stricter rules in the case of road transport within their own territory.

The package brings in an obligatory minimum daily rest of 9 hours for drivers (instead of the present 8 hours) and an obligatory rest of at least 45 consecutive hours every two weeks. This “weekend off” for professional drivers, in the form of a real rest for two full days at least every fortnight, is unknown in most Member States.

Another measure is the reduction of maximum driving time for professional drivers. At present they can drive for up to 74 hours a week. When this instrument comes into force, no professional driver in Europe will be allowed to drive for more than 56 hours a week. Several Member States will have to review their legislation to incorporate this requirement.

It complements the legislation already in force since 23 March that limits the working time for professional drivers to an average of 48 hours a week over a four-month period.

The draft legislation provides that it will be the drivers’ employers (sharing liability with the shippers) and no longer drivers themselves who will be held responsible for infringements.

For the first time, one Member State will be able to penalise infringements committed in another. With the introduction of the digital tachograph, it will be possible for inspectors to check drivers’ driving times over the previous 28 days and to take a vehicle off the road immediately in the case of a serious infringement.

These new rules will be accompanied by a gradual increase in the number of checks from 1% to 3% of days worked by drivers as well as a tripling of the number of operations carried out jointly by Member States.

Daihatsu Motor, which is due to start production of its next compact SUV early next year, will supply a proportion of its 40,000 p.a. output for sale by parent firm Toyota, the Kyodo News agency reported today. The model, called ‘Be Go’ in Japan, will replace the Terios model imported to Britain until production was halted last month.

Toyota has previously confirmed plans consolidate Japanese production of smaller vehicles at Daihatsu. Daihatsu Auto Body's plant, which commenced production late in 2004 with an initial annual capacity of 150,000 units, is now expanding capacity to 200,000 units for 2006, after investment of 9 billion yen, and is expected to expand further to 250,000 vehicles by the end of next year.

Russia's GAZ (Gorky Automobile Plant) will stop manufacturing the Soviet-era Volga car model “which no longer corresponds to modern realities”, and will no longer design its own cars, according to its owner, the Bazovy Element company, whose chairman delivered the news in a speech to the Carnegie Foundation in Washington, DC yesterday.

The plant will henceforth concentrate on commercial and military vehicle and bus production.

(Itar-Tass agency)

The all-new Jaguar XK was awarded the Engineering and Technology Award at the Prince Michael International Road Safety Awards on 6 December. This year Jaguar has been recognised for the ‘pedestrian deployable’ bonnet in the new XK sports car.

Kia Motors’ UK sales company is restructuring its sales, supply and planning operations following the departure of Howard Slade, sales director after four and a half years with the brand. Alex Smith has been appointed Commercial Director following a restructuring of the company.

Alex Smith joined Kia in December 2003 as General Manager of Sales Channel Strategy. In his new role he will bring under one roof the responsibility for sales programmes, logistics, the coordination of production and distribution, the implementation of systems and facilities such as the new import centre at Killingholme, the development of fleet programmes and used car programmes in the network as well as managing the firm’s field force.

Neighborhood Electric Vehicle (NEV) users in California are eliminating one-third of ozone- forming emissions they would normally produce each year, according to a new study of street-legal EV use. In all, California's 15,000 owners of neighborhood electric vehicles (NEVs) cut the state's total ozone-forming emissions by 8.5 tons per year.

"About one-third of a NEV owner's yearly harmful tailpipe emissions are eliminated simply by using the electric vehicle instead of a conventional vehicle for short trips," said Larry Oswald of DaimlerChrysler Corporation, whose Global Electric Motorcars (GEM) subsidiary is the largest manufacturer of such vehicles.

Oswald is CEO of Global Electric Motorcars, LLC (GEM), a subsidiary of DaimlerChrysler and the world's largest manufacturer of NEVS. Oswald and GEM President Rick Kasper presented findings of the recent California study during the Electric Drive Transportation Association Conference & Exposition in Vancouver yesterday.

Siemens VDO yesterday completed the acquisition of some of American Electronic Components, Inc.'s (AEC) employees, assets and technology, to advance towards a market leadership position in the North American automotive sensors segment.

"This acquisition brings Siemens VDO additional engineering and design capabilities to grow our expertise in automotive sensor technology and secure a more competitive market position in the NAFTA region," said Siemens VDO Sensors Division General Manager Bret Sauerwein. "AEC has the ability to quickly take a product from concept to production using their experienced engineering team. They have a history of designing highly engineered sensors that can impact both existing and new market segments."

American Electronic Components (AEC), located in Elkhart, Indiana, designs, manufactures and markets sensors used in automotive, heavy truck, off-highway and marine applications. The company specializes in antilock brake system (ABS) camshaft, crankshaft and transmission speed sensors using both "Hall Effect" and variable reluctance (VR) sensing technology. AEC also produces a wide range of Hall Effect-based, non-contacting position sensors used in various applications, such as chassis ride height, transmission range and accelerator pedal position.

In the immediate future, Siemens VDO intends to use the former AEC location as the company's North American headquarters for its Sensors division.

A Nevada-based alternative energy developer, Solatec LLC, has launched flexible, rooftop-mounted photovoltaic solar panels for hybrid vehicles, starting with a kit for the 2004-2006 Toyota Prius. The $2,195 kits will be made available through dealer franchises.

A prototype has been operating in North Eastern USA for several months under mixed driving conditions. With Solatec panels installed on the roof, the prototype ‘SolaPrius’ averages 55 mpg (city) and 62 mpg (highway) - an overall 10 per cent improvement over the pre-installation numbers. All-season testing is in progress.

Solatec's photovoltaic kit (patents applied for) adds two flexible, conformal panels that charge the hybrid automobile's auxiliary battery through a proprietary charger/current-limiter system concealed behind interior trim panels. The self-adhesive, rooftop-mounted panels are only 0.6mm thick and cause no change in aerodynamic drag.

Development of the hybrid vehicle solar panels came about as a side project of Solatec LLC's solar aircraft research, which uses the same flexible photovoltaic panels to sustain the aircraft in flight. The same aircraft grade adhesive is used on both systems.

Kits for other hybrid cars are presently in development and testing.

(www.solatecllc.com)

Frost & Sullivan expects clean diesels to capture up to 10 per cent of North American light vehicle powertrain sales by 2015, around three to four times the penetration of 2004. New analysis in Frost & Sullivan’s Strategic Analysis of North American Automotive Light Diesel Technologies, shows that light automotive diesel powertrains captured unit sales of around 500,000 in model year 2004, and are estimated to reach 2 million units by model year 2015.

A favorable outcome for diesels is not yet seen as a done deal, however. By 2009, U.S. automotive diesels (under EPA tier 2, bin 5) are required to have tailpipe emissions just as clean as spark-ignited gasoline engines. That is, almost zero noxious emissions levels for both types of engines. That scenario requires near-heroic efforts for diesel engine designers involving elaborate and costly aftertreatments, and potential use of alternative lower-temperature combustion technologies.

Tier 1 system suppliers are working hard to help diesel engine builders minimize engine-out emissions (with various DI techniques, such as higher common-rail injection pressures and more injection events per cycle, combustion chamber/piston bowl modifications, and exhaust gas recirculation [EGR] technology), as well as reduced tailpipe-out emissions via effective exhaust aftertreatments downstream of the engine. The above strategies, plus alternative combustion schemes could help the automotive diesel industry to survive and prosper in North America.

Strategic Analysis of North American Automotive Light Diesel Technologies forms part of Frost & Sullivan’s Automotive Advanced Technologies subscription. An overview of the research is available by email from Tolu Babalola - Corporate Communications at tolu.babalola@frost.com to enquirers providing the following information: full name, company name, title, telephone number, e-mail address, city, state, and country.

Phoenix Capital, the Japanese private equity fund which led a $10bn rescue of Mitsubishi Motors Corp. (MMC) with other Mitsubishi group companies, is to sell its entire $1.1bn holding in the company, to JPMorgan, which will then immediately sell the shares to a group of institutional investors and hedge funds, reports the Financial Times. Phoenix had already reduced its MMC holding from 17 per cent to 12 per cent earlier this year and sold those shares to JPMorgan.

DaimlerChrysler sold its 12.42 per cent holding in MMC to Goldman Sachs in November, which then resold those shares to other investors.

The latest transaction will leave Mitsubishi Heavy Industries as MMC’s largest shareholder with a 15 per cent of the equity, followed by Mitsubishi Corp with 14 per cent.

The MG Rover Task Force’s report six months after the company's April entry into administration shows fewer people than originally predicted had been made redundant in the West Midlands as a result of MG Rover's closure, and more than 1,300 jobs in the supply chain had been saved.

The impact on employment levels is likely to have been around 9,000 jobs – this is equivalent to roughly 1 in 250 jobs in the region. The initial fall in gross valuen added – GVA - is likely to have been in the order of 0.2% of the regional total. The Task Force’s assessment of the medium to longer term impact reflects the success of the Task Force and the overall resilience of the regional economy:

The prospects for former MG Rover and supplier workers of regaining employment are described as good – with a likely re-employment rate within 18 months of over 75%. This is in the context of the incomparable circumstances of an overnight mass redundancy with a major plant closure, an older work force (67% over 40), above average salaries, and a varied skills base.

The medium term impact on the economy could be £50-£90 m p.a. in GVA (0.1% of the regional total. In the longer term, it is possible that GVA will bounce back entirely or even improve, although the overall fall in employment could be from 1-3,000 jobs.

The impacts are very much concentrated in South West Birmingham, North Worcestershire, and the South Black Country, where the majority of former MG Rover workers live. The pattern for the supply chain is more dispersed, although there is a significant cluster in the Coventry area.

(www.advantagewm.co.uk/mg-rover-task-force)

Toyota is developing fuel cell systems to generate electricity in the home in collaboration with Aisin Seiki, according to company officials’ statements reported in Japanese media yesterday. Toyota has already collaborated with Toho Gas Co. to test fuel-cell cogeneration systems in Japanese homes.

Toyota is planning to take part in Japanese government-subsidised fuel cell demonstration tests, along with other utility firms. If a market for home fuel cell systems are to take off, their price will have to drop by about ten times to around 500,000 yen, and they will have to prove more durable, according to Toyota.

(The Japan Times online, 8 December)

Ford’s restructuring plans, discussed on Tuesday and Wednesday by the company’s board of directors, could involve closing at least 10 assembly and component plants and eliminating 25,000 to 30,000 hourly-paid jobs in North America within five years, the Detroit News said yesterday. No details of Ford’s plans have yet been announced by the company itself, and are not expected to be outlined until 23 January next year.

The Detroit News report involves far more job casualties than other reports had forecast at the beginning of the week, and brings the number of forecast Ford job losses into line with GM’s recently-announced 30,000.

Wall Street took the normally well-informed Detroit News’ story at face value and saw Ford shares climb by 2 per cent yesterday.

A previous restructuring plan announced by Ford chairman and CEO Bill Ford would have cut about 20,000 job cuts in the company’s North American operations.

Coincident with speculation on Ford’s North American cost reductions, the US consumer website thecarconnection.com suggests that Renault is considering offering to buy Jaguar from Ford, having failed to make a significant market impact with its own larger cars. Quoting a report in the French business magazine L'Expansion, the site says Ford might be more likely to accept an offer for the consistently loss-making Jaguar than it was when Renault reportedly offered to buy Volvo Cars.

General Motors issued a formal news release yesterday confirming that it is in discussions with Tracinda Corp. regarding possible representation on GM's Board of Directors.

Jerry York, a former chief financial officer of Chrysler Corp., is understood by US media to be representing Kirk Kerkorian, whose Tracinda Corp. holds about 9.9 per cent of GM's common stock, and stands to be paid 4 per cent of any profit Kerkorian may make on his GM investment, but is locked in until 2009, according to a filing with the US Securities and Exchange Commission.

Entrepreneur Kirk Kerkorian hired York as a consultant to his investment vehicle Tracinda Corp. when he purchased GM shares in June. Seven months later, his 56 million GM shares are worth $390 million less than the $1.7 billion he paid for them.

According to a report in the Italian Gazzetta dello Sport newspaper the company which manages the Monza race circuit has formally appealed against a recent ruling in a Milan court that threatens the future of motorsport, including the Formula One Italian Grand Prix at the historic venue.

As a part of the appeal the SIAS, which operates the Autodromo Nazionale di Monza on behalf of the Milan automobile club, submitted a 60-page document rebutting the charges on five main grounds including alleged inaccuracies in measuring noise levels and failure to take into account noise pollution regulations covering airports and autodromes. A verdict is expected in January 2006.

(Source: Gazzetta dello Sport)

Overall rolling year CV registrations last month were on a par with November 2004 at 387,671, reports the SMMT, saying the UK CV market’s growth cycle has passed its peak; although November registrations themselves were down 8.9 per cent at 30,881, year-to-date registrations were down only 0.6 per cent on 2004 figures at 359,201 units.

November light CV registrations totalled 25,341 units, bringing the January-November total to 300,555, down 1.6 per cent on 2004. Trucks of all classes over 3.5 tonnes totalled 5,193 in November, representing a fall of 9.3 per cent, while an 11-month total of 54,800 represented 5.0 per cent year on year growth. Bus and coach registrations in November totalled 347, 28.5% up on the same month last year, while the total for the year to date of 3,846 represents 4.8 per cent growth.

“Total CV registrations stayed at near record levels through 2005 and should hold close to 2004 volumes,” said Christopher Macgowan, SMMT chief executive. “But consumer caution in an economically tougher year has dented business confidence and slowed investment a little. High energy prices will carry this uncertainty into 2006.”

Breakdowns of November and YTD CV registrations in each category and by manufacturer are posted at www.smmt.co.uk.

New car sales in Western Europe fell by 2.7% in November, despite the fact that there was the same number of selling days as a year earlier. The annualised selling rate was 14.8m units. Italy and Spain enjoyed good results with selling rates remaining strong, though the Spanish market recorded a year-on-year decline after last year’s very strong November.

The UK market’s decline was threatening to offset gains in other markets, though German demand was good in comparison with much of 2005 though there is some way to go before it can be assumed that a durable recovery is under way.

J.D. Power Forecasting (formerly J.D. Power-LMC) says the European market is limbering up to what seems to be turning into a regular event: a strong incentive-led December that boosts sales for the year. The company is assuming that the selling rate will top 16m units/year this December resulting in a full-year total a little under 14.7m units for 2005 — described as being a good result given the prevailing weakness in consumer sentiment in a number of large markets. The outlook for 2006 remains solid, though the firm does not expect to see a further gain in sales.

The decline in the UK market was once again evident with sales falling by 7.9% on the year and the November annualised selling rate remaining cool (relative to the last few years) at under 2.3m units/year. Consumer confidence continued to slide in the month and this had an especially strong impact on the retail element of sales — sales to businesses were actually up. December should be relatively strong but only if manufacturers boost demand with incentives. Full-year sales for 2005 are now likely to be between 5% and 6% down on 2004 levels. A further decline is expected in 2006.

(pkelly@lmc.co.uk)

Model and racing driver Jodie Kidd has been announced as the face of The British International Motor Show 2006, which is returning to London with a new format. BMW ia returning as one of over 50 exhibitor firms after a five-year absence. The show will blend traditional indoor car exhibits with a programme of outdoor displays and entertainment.

Show features will include:

- A 3000-seater theatre with five daily performances of live driving stunts and demonstrations.

- A 4x4 off-road course

- Evening rock concerts organised by Harvey Goldsmith.

- A dedicated 2.2 km taster test drive track

- A driving School with qualified instructor.

First Day Tickets, which normally guarantee half the show’s crowds, are now available at £30; other weekday tickets are £8 and weekend tickets are £12.

(www.britishmotorshow.co.uk)

Frederick “Fritz” Henderson, chairman of GM Europe and a GM group vice president, was been elected GM vice chairman and chief financial officer yesterday by the GM Board of Directors, effective from 1 January, 2006. Carl-Peter Forster, GM vice president and president of GM Europe, will replace Henderson as a GM group vice president while remaining president of GM Europe.

Current vice chairman and CFO John Devine has agreed to remain beyond his five-year contract, which expires this month, for up to one year and will serve as vice chairman. He will work closely with Henderson on transitional issues, and advise Chairman and CEO Rick Wagoner on implementing the GM North America turnaround plan and other strategic issues.

Henderson has been in charge of GM Europe since June 2004, and previously was president of GM Asia Pacific from 2002 to 2004, and president of GM Latin America, Africa and Mideast from 2000 to 2002. He also served as president and managing director of GM do Brasil from 1997 to 2000, after holding a variety of management positions at GM’s former Delphi unit, GMAC and the GM Treasurer’s Office.

In recognition of the launch of its membership and qualifications services to the Malaysian market this summer, the Institute of the Motor Industry received two honours at the East of England International Trade Awards, organised by UK Trade & Investment’s Passport to Export programme.

The IMI was presented with the Innovative International Marketing Approach Award 2005 (East Of England) and achieved Highly Commended in the overall International Trade Award for Hertfordshire.

The IMI joined UK Trade & Investment’s Passport to Export Programme in 2004 which enabled it to visit and carry out market research in Malaysia and attend a two-day workshop in the UK to help plan a route to starting business in South East Asia.

Based in Kuala Lumpur, the new company, IMI Malaysia, which was officially opened by HRH Prince Michael of Kent, the IMI’s Patron, operates as a licensed agent of the IMI. In partnership with the Malaysian Ministry of Human Resources, it offers a structured membership and qualifications programme to automotive professionals and students training for a career in the automotive industry.

New SUVs have become more affordable over the past year, according to EurotaxGlass’s. The latest Glass’s New Car Market Trends report indicates that, while list prices across the UK’s new car market as a whole have increased on average by 1.4 per cent or £193 year-on-year to the end of November, those for SUVs have fallen by 0.2 per cent.

EurotaxGlass’s says SUV prices are likely to fall at an even faster rate in 2006 due to a marked increase in competition within the sector and the launch of more affordable models from volume and budget marques.

“There will be at least 25 new SUVs arriving next year - far more than in any other market segment,” comments Alan Cole, Editor for Glass’s Market Intelligence Service. “With many of these vehicles expected to compete with affordable hatchbacks and saloon cars, the net effect will be to bring the price of the average SUV down further still.”

The segment that saw the greatest price increases over this period was the large executive sector (BMW 5 Series, Mercedes-Benz E-Class, etc), with an average list price rise of 3.4 per cent, or £964. The greatest falls were in the supermini segment (Ford Fiesta, Vauxhall Corsa, etc), with list price reductions worth 1.3 per cent, or £122, on the average car.

There were other list price increases beyond the 1.4 per cent market average in the following segments:

- Lower-medium (Renault Megane, Vauxhall Astra, etc): up 3.2 per cent

- Upper-medium (Ford Mondeo, Toyota Avensis, etc): up 2.9 per cent

- Additional below average rises in list prices were found in the following segments:

- Large MPVs (Renault Espace, Volkswagen Sharan, etc): up 1.2 per cent

- Compact executive (Mercedes C-Class, BMW 3 Series, etc): up 0.6 per cent

- Compact MPV (VW Touran, Citroen Picasso, etc): up 0.2 per cent

To request a free electronic copy of the latest Glass’s New Car Market Trends report, email: marketing@eurotaxglass.co.uk, quoting reference ‘New Car 11’.

The BOC Foundation has awarded OSCar Automotive a grant to develop a powertrain for a two-seat urban vehicle powered by a hydrogen fuel cell. The grant will help fund the two year Hyrban project which aims to prove that practical hydrogen fuel cell urban vehicles are readily engineered using existing fuel cell technology.

The Hyrban concept car will have an electric motor in each wheel powered primarily by a fuel cell. The motors will become generators under braking and will charge ultra-capacitors, which will provide most of the power for acceleration. This will allow the vehicle to have the acceleration of a Smart Car, despite the fuel cell only having an output of around 6kW (less power than that required to run four electric kettles) and the energy consumption of a moped. The car could cruise at around 50mph.

The project is being developed by three partners; OSCar Automotive, Oxford and Cranfield Universities. Oxford University’s Department of Engineering Science is developing the electric motors while Cranfield University is developing the computer simulations (used in optimising the design) and the vehicle control and energy management strategy. Both universities are already working with OSCar, BOC, the Morgan Motor Company and Qinetiq on the LIFECar project, a fuel cell powered sports car, part-funded by the DTI’s technology programme.

Hugo Spowers, managing director of OSCar commented: “We are very pleased that the BOC Foundation is supporting this work which promises to overcome the main barriers to the commercialisation of fuel cell powered cars - fuel cell cost and the problem of hydrogen storage - but by developing the vehicle architecture to suit a fuel cell, solutions are within our grasp.”

Spowers added: “A sophisticated hybrid powertrain will require a fuel cell of less than one quarter of the power required conventionally - and thus one quarter the cost. With energy consumption also similarly reduced, there is no problem in storing enough hydrogen on board the vehicle.”

Barry Beecroft, director of The BOC Foundation added: “The urban vehicle segment is the most promising for the early adoption of such vehicles and the infrastructure necessary to support them.”

The UK’s first national voluntary assessment system for car technicians, Automotive Technician Accreditation (ATA), has seen over 1,000 technicians register since launching in June 2005, reports the scheme’s developer, the Institute of the Motor Industry.

Developed over three years, Automotive Technician Accreditation is a national benchmark of current competence for technicians, of which there are an estimated 150,000 in the UK, who are working on increasingly complex vehicles.

To achieve ATA status, technicians must pass a series of practical tasks and an on-line knowledge test at an ATA approved assessment centre, of which there are over 60 in the UK, including major vehicle manufacturers and national service and repair organisations, as well as colleges of further education.

There are three levels of accreditation: service maintenance technician, diagnostic technician, and master technician.

Sarah Sillars, IMI chief executive, said: “The level of support within the motor industry would suggest that at least 50% of businesses involved in vehicle servicing and repair nationwide will be actively supporting ATA within the next five years.” An early supporter of the scheme is Unipart Automotive, which yesterday reported plans to roll ATA support out to its 1,400-strong Car Care Centre network, in conjunction with its support of the BSI’s PAS 80 automotive servicing Kitemark scheme.

In a speech at the first Motor Industry Skills Convention on 30 November, Gerry Sutcliffe, Parliamentary Under-Secretary of State for Employment Relations and Consumer Affairs, reported the Society of Motor Manufacturers and Traders’ intention to pursue OFT approval for an own industry-wide code for servicing and repair, incorporating competence requirements.

This move to set up a separate code by the SMMT’s car manufacturer members follows the initiative taken by a number of firms to develop the BSI’s new PAS 80 voluntary garage quality code which is awaiting OFT approval, the VBRA’s already OFT-approved code for vehicle repairers, and the Retail Motor Industry Federation’s decision to abandon attempts to obtain OFT approval for its planned CarWise code earlier this year.

Gerry Sutcliffe said during his speech: “There are many questions which the industry will need to answer as the process of self-regulating takes shape. Not least of these will be how to produce schemes which are attractive to all levels in the sector, and attainable by all, and yet which will still achieve OFT recognition by delivering on the technical and ethical issues.

“Getting this balance right is essential if codes are to achieve acceptable levels of participation. Levels of participation which mean that consumers will have local choice between approved garages and those who are not - thereby generating local consumer demand for code participation.”

The minister added that service organisations should be aware that new legislation was planned on information and consultation.

Mr Sutcliffe said the sector skills body Automotive Skills “must have a central and pivotal role in developing and taking forward an agenda designed to meet the needs of all in the servicing and maintenance sector.”

The Government itself has set up the Retail Motor Strategy Group, a stakeholder group bringing together CEOs and senior directors from retailers, vehicle manufacturers and from Government. One sub-group of the RMSG, working in collaboration with the SMMT, is helping to develop the new SMMT code. Another, chaired by Sarah Sillars of the Institute of the Motor Industry, is considering how skills, training and ethics can be incorporated into such a code. The DTI provides the secretariat function for RMSG.

The National Consumer Council, which published a highly critical report on car servicing and repair last July, may exercise its right to submit a ‘supercomplaint’ to the OFT on the service and repair sector next year, or may decided to await the outcome of the new and planned OFT-approved garage codes.

Steve Brooker, the NCC's policy officer, told the Automotive Skills Convention he welcomed the BSI Kitemark and the SMMT's plans for an alternative, industry-wide code, but added that while the NCC would call for regulation reluctantly, "There comes a time when industry can no longer expect to regulate its own affairs while consumers continue to get a raw deal. That time is almost with us."

The US transaction processing and information systems supplier Automatic Data Processing, Inc. (ADP) has acquired the UK’s Kerridge Computer Co. Ltd. for approximately $300 million, in cash, ADP. Kerridge, with revenues of approximately $150 million, was founded in 1976, has 1,300 staff, and is the UK’s leading dealer management systems (DMS) provider and supplies other European markets as well as the Middle East, the Far East and South Africa.

Commenting on the transaction, Mr. Weinbach said, "This acquisition is an important part of ADP's initiative for global expansion. Kerridge is a strategic fit with our Dealer Services (DS) business which provides DMS and other integrated comprehensive solutions to auto, truck, motorcycle, marine and recreational vehicle dealers throughout the United States, Canada and Europe.

"The addition of Kerridge positions DS as the leading global DMS provider and partner of choice for the industry by expanding its geographic coverage from 14 countries on two continents to a total of 41 countries on four continents.

"We expect this transaction will not impact earnings per share in fiscal year 2006 and anticipate that it will be accretive by approximately $0.01 beginning in fiscal year 2007."

ADP boasts $8.5 billion in revenues and has approximately 590,000 clients worldwide.

mxData, the provider of Traffic TV, the map-based traffic information service for mobile phones, has extended its service to offer live roadside TV coverage from across all the UK's busiest motorways. This now represents the largest mobile CCTV network and includes images from the M25, M4, M5, M1, M40, M42, M6 and the M62.

The Traffic TV service has access to over 500 Highways Agency roadside cameras and traffic data taken from Trafficmaster's 7,500 sensors positioned alongside motorways and trunk roads throughout the UK. When used in conjunction with a hands free car kit motorists can receive automatic, in-car updates as they drive, besides checking traffic conditions before departure.

TopGayer, the recently-launched gay motoring website, has been made the media partner for GayCar, a new leasing company designed to provide cars to gay people. The GayCar website with information on the vehicles available and pricing can be found by going either direct to www.gaycar.co.uk or via www.topgayer.com.

Meanwhile in the US, Ford Motor Company has said it will reduce its Jaguar and Land Rover advertising spend in gay-orientated media, after the conservative American Family Association had threatened a boycott of the company for its "track record for supporting the homosexual agenda" this autumn. Ford, which said it was not altering its ad budget attribution for fellow PAG brand Volvo, said the change of policy reflected budget streamlining rather than a response to the American Family Association’s threat.

Inchcape plc, the international automotive services group, has appointed Barbara Richmond as Group Finance Director. She will take up the post on the board of Inchcape as an executive director in April 2006 and joins the company from the chemicals business Croda International Plc, where she has held the position of Group Finance Director, since 1997.

The 15- member board of Ford Motor Company is meeting today and tomorrow (7-8 December) to review capacity reduction and new product plans, updated from proposals first submitted in October. Ford is planning to close as many as five vehicle assembly plants as part of its plan, according to various news reports, which could reduce its assembly headcount by some 9,000 employees.

Suspected closure candidates include an SUV plant in St. Louis, a saloon car plant in Atlanta, a pickup plant in St. Paul, Minn., a luxury car plant in Wixom, Michigan. and a truck assembly plant in Cuautitlan, Mexico, according to media reports.

When the closures and planned job losses are confirmed by Ford, they will add to GM’s plans to close 12 manufacturing facilities and lay off 30,000 staff in pursuit of a $7 billion cost reduction target; with the restructuring of both OEMs’ biggest suppliers Delphi and Visteon and its effect on their Tier 2 suppliers in turn, 2005 is set to witness the largest ever disruption of automotive employment in the US.

MG Rover dealers holding stock of new cars have been given a year's grace to sell off their remaining stock of Euro 3-compliant new Rovers and MGs before new Euro 4 emissions regulations come into force on January 1. Without the derogation applied for by MG Rover’s administrators at PwC, the approximately 14,000 unsold cars would have had to be pre-registered and retailed as used cars, increasing the level of discounting that has already affected their net prices.

Mike Corbett, dealer principal at Brindley in Wolverhampton, said the cars represented "seriously good value" for buyers with average prices being 25 per cent lower than originally. MG TF sports cars are under £12,000 - some £4,000 cheaper than the original asking price - and V6 Rover 75s can be had for about £16,000 - 40 per cent less than a list price of £24,000.

(Wolverhampton Express and Star)

China's car output in 2005 is expected to reach approximately 5.6 million units, which will exceed Russia's to make China the world's third largest automotive manufacturing nation, according to China Automotive Industry Association (CAIA) sources quoted by the People’s Daily today.

The State Information Centre has reportedly forecast that China's domestic demand this year will total about 5.8 million units, and that it will rise to 6.5 million next year. In January-October this year, production reached 4.62 million units (up 9.18 per cent year on yearm and domestic sales 4.59 million units, up 11.04 per cent year-on-year, according to the CAIA.

(Xinhua/People’s Daily Online, 7 December)

New car registrations fell 7.9 per cent in November to 158,474 units, bringing the year-to-November figures down 5.8 per cent year on year at 2,282,851 units. While private buyers stayed away from showrooms, diesel penetration of the November new car market reached a record 42.2 per cent as company car buyers who account for two-thirds of diesel registrations took advantage of the three per cent tax surcharge waiver before its 1 January expiry.

“As the chancellor commented yesterday, 2005 has been a tough year, especially for the new car market,” commented SMMT chief executive Christopher Macgowan. “However, despite a weaker market, diesel registrations continue to rise. We had forecast a spike in diesel registrations as company car buyers rush to beat the end of the three per cent surcharge waiver. As we enter the final month of the year, it will be interesting to see if this month's spike gets bigger.”

The private market fell by 15.8 per cent in November, the sharpest fall since February.

November registrations were 13,620 units short of the 2004 performance. It was also 8,693 units, or 5.1 per cent, off the average for the month over the 1999-2004 period. The UK new car market will remain the second largest in Europe in 2005, but will dip below 2.5 million units for the first time since 2000. The full year total will be the fifth largest annual UK market ever, albeit the lowest since 2000.

UK-built cars recorded a 14.5 per cent fall in November, with year-to-date volumes down 10.6 per cent. The loss of MG Rover volumes remains key, representing 25.8 per cent of the overall shortfall in November and 31.5 per cent over the year-to-date.

Supermini and lower medium volumes have dipped five per cent over the year-to-date but at 1.4 million units, they still represent 61.7 per cent of the market –up from 61.2 per cent a year ago. Nine of the 10 best sellers over the year-to-date are from these two segments.

Ford's Focus remained the UK's best seller in November, although Vauxhall's Astra was a close second. Lower medium cars showed the best year-to-date growth, up 4.3 per cent.

The Chancellor of the Exchequer yesterday confirmed in his pre-budget report the continuation of the freeze in main fuel duty rates and the duty rates for road fuel gases, due to continued oil market volatility; and a 1.22 pence per litre increase in duty on rebated fuels, which will support the strategy to tackle oils fraud; the statement confirmed the government’s recently announced policy commitment to introduce a Renewable Transport Fuel Obligation and enhanced capital allowances for biofuels plants.

Freezing fuel duties is expected to increase carbon emissions by around 0.07 MtC over a full year, compared to revalorisation, but the Government says higher fuel prices than expected in 2005–06 will more than offset this increase.

- On transport-related environmental issues, further significant reductions in all air pollutants are projected, although, on the basis of current policy measures, the Government says it is unlikely that targets for nitrogen dioxide and particulates will be met in all parts of the country, particularly in some urban areas. The Government is currently reviewing the Air Quality Strategy and will publish a consultation in 2006.

- Following informal discussions with industry, the Department for Transport intends to consult on draft regulations to ensure the availability of sulphur-free diesel and sulphur-free ‘super’ grades of petrol, and will make an announcement shortly. HMRC will also consider at Budget 2006 whether there are deregulatory changes that could be made to the Hydrocarbon Oil Duties Act 1979 to encourage the delivery of sulphur-free fuels.

- While oil market volatility has pushed up the costs of fuel in recent months, real motoring costs have remained broadly constant over the last decade. Household disposable income has risen steadily over the same period due to sustained economic growth, and therefore motoring cost relative to household disposable income has decreased. This trend is likely to continue in coming years.

- To support the development of biofuels, the Government introduced a 20 pence per litre duty differential for biodiesel in 2002, and for bioethanol at the start of this year. By October of this year, biofuels’ market share had grown to around 11 million litres per month, or 0.25 per cent of road fuels, an eight-fold increase since the start of this year. In line with the Alternative Fuels Framework, the current duty incentive is guaranteed until 2007-08, at which point the Renewable Transport Fuel Obligation (RTFO) is expected to be launched following consultations with stakeholders the next three months to inform the decision on the target levels for the RTFO in 2008-09 and 2009-10, with these set out in Budget 2006, along with the duty incentive for 2008-09. Further consultations on the detail of the RTFO will be taken forward over the next 12 to 18 months, including the issue of carbon accreditation.

- The Government will continue to consider the case for improving VED incentives for fuel-efficient vehicles, and will announce company car tax thresholds for 2008-09 at Budget 2006. In response to recent consultations on corporation tax, the Government is giving further consideration to modernising the capital allowance regime for business cars. Options include introducing a new car pool with a range of first year allowances for cars depending on carbon dioxide emissions, building on the existing 100 per cent first year allowance for cars with very low emissions, and reforms to VED and company car tax.

- The figure on which the company car tax fuel benefit charge is based, now set at £14,400, will continue to be reviewed as part of the normal Budget process. The Government announced at Budget 2005 that the VAT fuel scale charge would be reformed as part of a strategic approach to vehicle taxation, to follow a carbon emissions basis, working alongside the reformed company car tax and fuel benefit charge. Following further discussions with industry in the autumn, the Government will now introduce the changes to the VAT fuel scale charge by secondary legislation. Following representations from industry, the new system will come into force on 1 May 2007.

- The Government will consider the case for incentivising the uptake of Euro V vehicle emissions standards, through company car tax and other instruments, ahead of the formal requirement to meet Euro V emissions standards, which are still being considered by the European Commission.

- The Euro IV standard for heavy goods vehicles (HGVs) will become mandatory from October 2006, and from that date newly registered HGVs will no longer be eligible for a reduced pollution certificate (RPC). However, vehicles which get an RPC before that date will retain the benefit for the life of the vehicle, consistent with meeting the normal testing requirements. The RPC will also remain open to those who fit pre-October 2006 registered vehicles with the qualifying technology.

- The Government welcomes the Burns inquiry into the haulage industry, and is inviting key industry associations to participate in a joint task group to examine the implications of its findings concerning the sector’s competitive situation. In the meantime, to ensure fairer enforcement of UK weight regulations on both domestic and foreign lorry operators, the Government will invest £2 million to fund “Weighin- Motion” sensors at up to 20 locations around the UK to allow better targeting of enforcement activity. Fairer enforcement for hauliers of all nationalities will be further strengthened by the enabling provisions contained in the Road Safety Bill (currently before Parliament).

These will allow enforcement agencies to take a cash deposit from overseas hauliers who commit offences. Further, as part of engagement with industry the Government will shortly be undertaking a consultation on proposals to simplify the operator licence regime to lower hauliers’ transaction costs and give them more flexibility.

The Society of Motor Manufacturers and Traders welcomed the focus on stability and more streamlined regulation in the Chancellor's pre-budget statement. SMMT chief executive Christopher Macgowan commented, “While the outcome of long-term review in areas like transport, energy, skills, climate change and pensions may present challenges in next spring's statement, Gordon Brown today announced a number of measures that should help cut the cost burden to business and support the short-term development of competitiveness for UK plc. Broadly today's statement is a positive one for the motor sector.”

More specifically, the SMMT welcomes the Chancellor's intent to propose competitiveness tests for existing and new EU regulation. The freeze in duty rates is welcomed, and the motor industry is pleased that innovation in car manufacturing has been praised in the drive to cut average new car CO2 emissions. The SMMT looks forward to responding to the consultation on proposals for tax incentives for new Euro 5 cars and small vans and will urge for the inclusion of commercial vehicles.

However, the SMMT adds that as well as Euro 5 incentives, urgent action must be taken to secure grant funding for the cleanest new cars and other vehicles following the collapse of EST-managed schemes such as Powershift earlier this year.

The SMMT welcomes the announcement of more support for R&D tax credits and will study these changes in detail.

Nationwide Autocentres has been announced as the 57th highest performer in the annual league table of Britain’s fastest growing private companies. and the highest placed company from the automotive sector. The past three years have seen Nationwide Autocentres, based at Solihull, West Midlands, become the UK’s largest wholly- owned network of vehicle servicing outlets. With 214 centres in the UK, Nationwide now services more than 50,000 vehicles every month and performs more than 250,000 MOT tests every year.

Chief Executive Tom Dunn said: “We are delighted with this achievement and regard it as testament not only to the hard work of everyone at Nationwide Autocentres, but also to our business ethos of reputation above all else. Garages have often aroused suspicion with their business practices in the past, but we have a total commitment to honest and straightforward trading and are completely intolerant of anything less.”

“We’re currently servicing and repairing more than half a million cars per annum and have a rate of customer complaints running at less than 0.1%. We continually survey our customers and listen to what they say, resulting in levels of customer loyalty that are unheard of in our industry.”

Nationwide Autocentres was formed in 2001 as a result of an MBI of the Lex Autocentre business, with funds from venture capitalist MBGI and Bank of Scotland. Since then the business has grown from 45 initial centres to 180 in 2003, and now the current 214. The management team has turn a loss-making network into a £78 million business. The Fast Track 100 bases its results on turnover figures between 2001 and 2004, which saw Nationwide Autocentres increase sales by 78% a year.

Following its acquisition of the AA’s service outlet network, formerly owned by Halfords, Nationwide became the AA’s preferred service network, and has other marketing relationships with non-automotive companies such as Tesco.

In July 2003 the Institute of the Motor Industry recognised Nationwide’s Solihull training centre as an approved assessment centre; it has over 220 apprentices enrolled, and this year achieved approval status for the Institute’s Automotive Technician Accreditation (ATA) programme.

(www.nationwideautocentre.com)

As the Chancellor of the Exchequer’s pre-budget statement noted yesterday the continuing fall in the cost of motoring in relation to total household expenditure, car maintenance contract agency motoreasy.com published research indicating that only 25% of motorists admitted to cutting back on journeys as fuel prices rose in the aftermath of the Gulf Coast hurricanes this year. Ten per cent of respondents said they found it necessary to reduce normal car travel by half.

motoreasy polled 865 drivers between 1-21st November 2005.

The latest brochure from JAMA Europe, "Common Challenges, Common Future - Japanese Automakers in the EU" is now viewable online. It covers statistics and data on production and R&D activities in the EU, Japanese manufacturers’ EU parts procurement, automotive ties between Europe and Japan, investment and employment.

(www.jama-english.jp/europe/index.html)

Volkswagen Financial Services (UK) Limited, the UK’s third largest captive finance house, has contracted for Experian to provide services including credit referencing, application processing, consumer credit scoring, fraud prevention and automotive solutions for a three-year period.

Volkswagen Financial Services has been providing finance on vehicles for the last 10 years and lends over £1.5 billion a year to fund over 180,000 vehicles a year via more than 750 retailers.

Toyota GB has appointed Michael Cole as Director of sales and aftersales operations on 1 December, after he had spent two years as general manager, aftersales operations. He joined Toyota GB in 1994.

Professor Krish Bhaskar, one of the unsuccessful bidders for MG Rover, says he has approached new owner Nanjing Automotive with ‘proposals to discuss opportunities for future co-operation’.

Professor Bhaskar says American Arabian Investment & Development Holdings, Inc (AMAR). has earmarked up to €1 billion to finance the project, and that it makes sense to examine the feasibility of acquiring assets at Longbridge which do not form part of Nanjing’s plans for the site, and possibly the sharing of core production facilities. He adds, “In the event that car production will not prove possible at Longbridge, then we would be prepared to consider an either an existing facility or a new ‘greenfield’ site in the West Midlands.”

It is not clear what brand any such project would carry if it came to fruition: Professor Bhaskar has been associated with plans to re-launch a spiritual successor to Austin Healey, and this week expressed surprise at reports that GB Sports Cars, which is already holding discussions with Nanjing Automobile, has acquired the right to use the Austin Healey name.

Educated at the London School of Economics, where he subsequently taught, Professor Bhaskar was later appointed to a founding chair at the University of East Anglia where he founded the Motor Industry Research Unit and later the 1Automotive/MIRU group of companies.

According to the Detection-to-Correction (DTC) metric first published by AMR Research in 2004 most vehicle manufacturers currently take up to 120 days on average (some up to 220) to recognize and correct a quality problem, with each day costing up to $1 million (cost of service, labour, parts, and brand impact). With 16.6 million recalls already this year, manufacturers are looking to Early Warning Systems (EWS) to reduce the amount of time it takes to correct a defect by as much as 40%, saving the industry, manufacturers, and stockholders ‘millions’ of dollars.

AMR Research says the largest single system impacted by 2005 recalls handled by the US National Highway Traffic Safety Administration has been with vehicle speed control (i.e., cruise control) at 4.7 million units, double the number of recalls by any other component category.

Between 1987 and 2005, the average number of new models launched per year was 35. In 2007, AMR Research estimates there will be 70 new model launches, doubling the average. This, coupled with the fact that manufacturers are continuing to compress how fast a car comes to market (by as much as 72% from 2000-2010), requires manufacturers to embrace early warning concepts to contain warranty issues.

Companies under 100 days detection-to-correction are continuing to scrape for reductions in each day. AMR Research says manufacturers just beginning the process will see immediate gains, but must change process as much as organization. Information on the recent steps that automotive manufacturers are taking to correct this problem is posted on www.amrresearch.com/

In response to increasing demand for BorgWarner DualTronic transmission technology in Europe and associated new business gained in transmission controls systems, BorgWarner has broken ground for a new, 160,000 sq ft facility in Eyrein, north of Tulle, in the Corrèze department of south-west France. BorgWarner currently manufactures solenoids and transmission control modules at a plant in Tulle, and plans to move that operation's employees and production to the new facility when it is completed in the summer of 2006.

Fuji Heavy Industries Ltd., parent of the Subaru car and SUV brand, has agreed with Toyota, its largest shareholder since October when it acquired GM’s shares, to manufacture Toyota Camry models at its Indiana plant from 2007, according to a Japan Times report today. The two companies also reportedly agreed to promote technological cooperation, according to the paper’s sources, which suggest specific projects to be discussed by the new partner manufacturers are expected to include the joint development of a new car.

Land Rover's Range Rover Sport has been crowned 'SUV of the Year' by BBC Top Gear after various road tests and challenges set for the vehicle by the Top Gear TV show and magazine. Jaguar and Land Rover chief engineer for vehicle integrity, Mike Cross, was also named a Top Gear 'Man of the Year for 2005' in the magazine.

Top Gear editor Michael Harvey said: "The Supercharged 390bhp Range Rover Sport is the only choice for Top Gear magazine's SUV of 2005. BMW and Porsche make world-beatingly-great sports cars, one or two of which look a bit like SUVs. Land Rover has only ever made great SUVs, one of which now goes a lot like a BMW or a Porsche."

Cooper-Standard Automotive has signed an agreement with ITT Industries Inc. to acquire ITT's Fluid Handling Systems for approximately $205 million. The transaction is expected to close in the first quarter of 2006. With 2004 net sales of approximately $437 million, ITT's Fluid Handling Systems division is a leading manufacturer of steel and plastic tubing for fuel and brake lines and quick-connects.

The acquisition of dealer group Reg Vardy plc by its biggest competitor Pendragon plc has not yet ended one of last week’s alternative bidders’ interest in pursuing a possible counter-bid. Notwithstanding Vardy’s recommendation of an 800p-per-share bid from Pendragon plc, Lookers plc yesterday confirmed that it has been actively engaged in discussions with the Board of Reg Vardy Plc about a possible cash offer and says that as part of these discussions, the company has made ‘good progress’ in arranging finance for such an offer, and is ‘continuing to progress discussions with potential funding providers’.

The Board of Reg Vardy said any proposal made by Lookers plc wouldl be judged on its merits at that time, but reiterated its recommendation of the Pendragon offer.

Hyundai Motor Co. and its affiliated Kia Motors Corporation ‘tentatively aim to sell a combined 4.47 million vehicles next year’, a total that would represent a 17 percent increase over this year’s combined total, the Korea Economic Daily reported today, 5 December.

Hyundai’s plant in the US is expected to raise capacity, while both Hyundai and Kia are planning to commence production in Eastern Europe.

Hyundai’s and Kia’s combined domestic and export sales are expected to reach 3.83 million units this year, the Korea Economic Daily reported, citing a Hyundai source, though neither of the two companies would confirm the figures for 2005 sales or 2006 forecasts. . Spokesmen at both companies could not confirm the report and said they were yet to set 2006 sales targets.

The Wall Street Journal has reported that Ford is likely to shut five North American plants employing about 7,500 workers, while a Bloomberg report puts the number of plants at risk at four. Ford of the Americas executive vice president Mark Fields is expected to propose at a Ford Motor Company board meeting this week which plants should be closed. Ford CEO Bill Ford had warned that closures would be recommended for review in December.

A Bloomberg report notes that Ford and GM lost a combined $6.3 billion in the first three quarters of this year, and lost between them 2.2% market share to principally Asian competitors in the US market, Toyota foremost among them. GM’s and Ford’s combined market value has dropped by $21 so far this year.

Ford’s announcement will follow GM’s of only two weeks ago in which chairman and CEO Richard Wagoner said twelve plants would be closed by 2008, involving 30,000 job losses, 5,000 more than he had warned of earlier this year. John Casesa, an analyst at Merrill Lynch, observed that “To the extent that GM takes any action to get more competitive, that has to influence the urgency of Ford's strategy.”

Both Ford and GM will be considering their cost-reduction plans in the light of prospects of industrial action at the stricken Delphi, which some UAW officials have said is probable given the current distance between the two sides on Delphi’s pay reduction requirements; GM moved last week to help Delphi restructure under Chapter 11 bankruptcy protection, and would be severely affected by any stoppage at its principal supplier.

Reports say a deal was agreed on 3rd September whereby the board of the UK’s third largest dealer group, Reg Vardy plc, will recommend a bid of 800p per share for the company from Pendragon plc, its largest rival.

Pendragon had earlier offered 750p, and the higher price, which follows approaches last week believed to have been from a management buy-out team and from dealer group Lookers plc, values Vardy at £450m and represents a considerable premium over recent dealer acquisition prices.

Chief executive Sir Peter Vardy has agreed to sell his family shareholding of 27.2%.

Pendragon chairman Sir Nigel Rudd said in a statement ahead of an EGM to approve the bid, "We believe that the combination of the two companies will strengthen relationships with principal manufacturer partners, lead to improved returns for our shareholders and provide greater opportunities within the enlarged group for all team members."

(Auto Retail Network, Autowired)

Just Car Clinic, the UK’s second largest collision repair chain, has announced a £100,000 investment in a training and support centre in Goole to serve Just Car Clinic’s 13 branches and 400 employees across the Yorkshire, Lincolnshire and Nottinghamshire regions. The centre is expected to be fully operational by January, with an IT suite, fully-fitted workshop and spray booth, and a number of offices and training suites.

China's vehicle exports exceeded imports for the first time -- by 7,000 units in the first ten months this year, the Ministry of Commerce reported on 4 December; built-up vehicle exports more than doubled from January to October to 135,000 units, while imports fell 11.6 percent year-on-year to 128,000.

Meanwhile, Ma Kai, minister in charge of the National Development and Reform Commission (NDRC), told an economics conference in Beijing that the country’s automotive industry's excess capacity had already reached 2 million units, and forecast the industry would be further pressured by an estimated production of 2.2 million units from plants now under construction, and as many as 8 million from those currently planned.

He said overcapacity in some industries "was seen last year, became prominent this year and would likely be exacerbated next year," adding that no new steel plants would obtain approvals in principle in 2006.

The Ministry of Commerce report on January-October statistics said that commercial vehicles accounted for over half China’s built-up vehicle exports, which also included small cars sold principally to developing nations such as Algeria, Syria and Vietnam. Imports were principally of upmarket cars from Japan, Germany and the US, with an average price of US$29,180.

Under its commitment to the WTO, China will remove tariffs on automotive imports by the end of 2006.

(Xinhua News Agency, December 5)

Scratch Guard Coat, a clear surface finish that Nissan has developed with Nippon Paint Co, and which is claimed to be the first of its kind, contains an elastic resin and can repair itself of slight scratches caused by car-washing, off-road driving and fingernails.

Car washes account for most car surface scratches, according to Nissan, which showed in Japan last week before-and-after pictures of a car with scratches and one with none remaining a week later. The coating is said to last about three years. It will be offered initially as an option on selected Japanese market models, at a premium yet to be confirmed.

The SMMT has reacted with concern to a Friends of the Earth statement calling for increases in tax on 4x4 vehicles, ‘whilst seemingly refusing to participate in the nuclear debate’. FOE urged the Chancellor last week to adopt a number of green measures including increasing tax on ‘gas-guzzling’ vehicles including 4x4s, and giving cash incentives for motorists to buy greener cars.

Noting that nuclear power has the potential to reduce CO2 emissions significantly from the largest source of man-made carbon dioxide – the energy industries, and that at present these account for around 38 per cent of total output, compared to 22 per cent for road transport, SMMT chief executive Christopher Macgowan commented: “Nuclear power may or may not be the way forward in terms of energy policy. However, to adopt a "no thanks" policy with its echoes from the cold war era, while berating drivers of 4x4 and SUV vehicles, is quite wrong.

“A full and informed debate on all efforts to cut CO2 across all industries would best serve the environment in the medium and long term.”

The SMMT went on to note that as well as average CO2 reductions of around 15 per cent in six years, a modern 4x4 diesel emits just seven per cent of the particulate emissions of a 15 year old saloon. Similarly on air quality NOx emissions, standards for the latest Euro 4 petrol 4x4s are six times as tight as those for a Euro 2 saloon, some of which are as little as five years old.

Will Friends of the Earth and Green Party members, asks the SMMT, be ticketing drivers of older, more polluting saloons, estates and small cars?

Friends of the Earth issued a further release on 4 December accusing the Chancellor of breaking promises over green taxes, saying green taxation had fallen under Gordon Brown, mainly “because Gordon Brown has frozen rates of road fuel duty and VED in recent years. If he had kept road fuel duty and VED at the same percentage of total tax, then these taxes would have raised £5 billion more in 2004. This tax increase could have been used for a number of purposes such as reducing taxes on employment, or boosting investment in sustainable transport alternatives to motoring.”

ATS Euromaster has appointed Russell Fleetwood as its new National Car Sales Director, a position he immediately takes over after a year as one of ATSE’s divisional sales managers. Reporting directly to Group Sales Director Paul Burnell, Russell will oversee ATS Euromaster’s largest fleet contracts such as Arval, Lombard, Lloyds TSB and Masterlease. ATS claims an over-50% share of the major fleet operators' replacement tyre sales.

The 7-speed Dual Clutch Transmission (DCT) system developed for the 1,000 bhp Bugatti Veyron super sportscar will be shown for the first time by Ricardo at the 4th International CTI-Symposium held in Berlin from today, 5 December until Thursday 8 December.

Delegates at the event, which highlights some of the world’s most innovative automotive transmission technologies, will have a one-off opportunity to see this advanced DCT unit on which Ricardo has collaborated with Bugatti Engineering GmbH; this is the only public gathering at which Ricardo will show the specially produced display exhibit.

Other technologies will be featured by Ricardo at the symposium’s parallel exhibition, including:

- A new version of the Ricardo’s Torque Vectoring concept that uses conventional actuation technology in conjunction with the company’s patented gear arrangement to achieve ‘unparalleled’ packaging advantages

- The Ricardo shift actuation concept, deployed in the Chrysler ME412 sports car, which will be demonstrated in the form of an actuator test rig showing Ricardo’s patented shift rail selection & actuation system

- New transmission CAE simulation technologies; Ricardo experts will be demonstrating the Ricardo Transmission Library soon to be available in the Modelica object-oriented modelling language for use in Dymola dynamic simulation environment, an ideal solution for development of plant models for all automated transmission systems

In addition to the exhibition displays, Ricardo will co-present a technical paper on the 7-speed DSG Transmission for the Bugatti Veyron with Bugatti Engineering GmbH at the symposium session on the afternoon of Tuesday 6th December.

According to a recent poll by the Ohio-based Maritz Research, low retail pricing on vehicles overwhelmingly beat out other incentive models including zero percent financing, three-year lower fuel price guarantee, an employee discount for everyone, a cash back rebate and “no-haggle” pricing (listed in order of preference).

The results support the move toward a lower transaction price that some manufacturers have been have been implementing in the US recently. Maritz’ Automotive Research Group conducted the survey of 1,009 adult owners and drivers.

To determine vehicle owners’ preferences, the survey compared five types of sales incentives offered by vehicle manufacturers with “Lower Retail Price.” In head-to-head comparisons, “Lower Retail Price” was preferred over every other customer buying incentive, and in many cases, by more than a two-to-one margin.

(www.maritzresearch.com)

Foray Motor Group, based in Wiltshire, has won the automotive industry category of the 2005 National Green Apple Environment Awards for its Ford National Clearance Centre, which since last year under an agreement with Ford of Britain, has provide a central storage and distribution centre for around £15m-worth of replacement parts inventory for Ford models launched over ten years ago. (www.thegreenorganisation.info/)

Unipart Automotive has launched a new garage support programme at a series of national roadshows to encourage its national network of 1,400 Unipart Car Care Centres (UCCCs) to apply for the British Standards Institute (BSI) Automotive Kitemark.

Unipart Automotive hosted the roadshows during November at six UK racing circuits to explain the benefits of major industry developments, including the BSI Automotive Kitemark and Automotive Technician Accreditation (ATA). In addition, educational workshops outlined a new garage support programme to assist its UCCC network in delivering a better motorist experience for the future.

To establish what the UCCCs think about the BSI Automotive Kitemark, a survey of more than 260 independent garages conducted at the roadshows found 91 per cent rated independently-audited standards as important to the garage trade, and of those surveyed 43 per cent identified the BSI Automotive Kitemark as ‘very important’.

Encouraging consumer trust in garage repair and servicing was considered the biggest business benefit for garages bearing the BSI Automotive Kitemark Standard (86 per cent). The following benefits were also identified as ways in which the BSI Automotive Kitemark could add value: re-establishing the motor industry’s reputation (74 per cent), encouraging motorists to visit garages close to home (70 per cent), and improved customer loyalty (58 per cent).

Within its new garage support programme, Unipart Automotive announced plans to help fund the necessary investments in training and technician accreditation, it also launched a dedicated technical support help line (08702 404 161) to provide guidance on achieving BSI Kitemark status, together with a new members website (www.ucccmembers.co.uk).

Andrew Daly, marketing director, said: "Unipart Automotive wants a clear badge of distinction between the so-called ‘rip-off’ garages and those who provide a service motorists can have confidence in. The BSI Automotive Kitemark and ATA training play an integral role in our new garage support programme."

Auto-txt, a new car security system developed in Coventry that identifies car owners through their mobile phones immediately identifies a car as stolen if the car is started with the keys but the mobile phone is not present.

When the police are following a stolen car, Auto-txt allows them to track the vehicle and prevent it restarting using remote wireless technology once the vehicle ignition is turned off.

It is also the first stolen vehicle protection and tracking system to have been awarded Thatcham's Category 5 accreditation. Auto-txt was developed by Richmond Design & Marketing (RDM) Group, a Coventry-based automotive supplier that has just raised funds of £4.75 million to further develop and roll out the system.

Because thieves are increasingly targeting people's car keys - then using them to drive off in their car, Category 5 systems require something else in addition to the keys to prove that the driver is the car's legal owner. In the case of Auto-txt this is via the Bluetooth facility on a mobile telephone.

Jim Hammond, of the Association of Chief Police Officers says: "Being able to remotely prevent a vehicle from being started using a Cat 5 approved device will help us enormously in the fight against stolen vehicle crime and may lead to a reduction in the need for police pursuits. This is one of the most important components of the new Category 5 standard systems as far as we are concerned.

The Auto-txt product costs from £279 for the standard tracking system and from £349 if the system incorporates the remote disabling feature.

(www.auto-txt.com)