News - Page 2092

DIXON Motors has expanded its senior management structure with the announcement of a new operations board. The 10-strong team will be led by group managing director Simon Dixon.

FIRMS which have opted out of providing company cars could be forced into a costly U-turn after Chancellor of the Exchequer Gordon Brown made cash for car and personal leasing schemes less attractive. Budget changes to Inland Revenue Authorised Mileage Rates from April 6 next year slash the cash paid to employees clocking up business mileage in their own cars with engines of 2.0-litres or more by as much as 30%.

VEHICLE Excise Duty rates on 1.5-litre diesel-engined cars are more for newly-registered cars than they are for those first registered before March 1. This blows a major hole in the Government's VED reforms which are targeted on encouraging the use of new vehicles - and also means that many older, higher polluting vehicles now qualify for reduced rates of VED.

CAP Motor Research today announced the launch of a new automotive business alliance designed to meet the needs of dealers, manufacturers, insurers, finance providers, fleets and remarketing specialists through use of the internet.

ACROSS-the-board fuel duty cuts are set to save the fleet industry hundreds of thousands of pounds in running costs - but fleets which cannot access ultra-low sulphur fuel are set to lose out. Ultra-low sulphur petrol has seen a 2 pence per litre (9p per gallon) cut in duty, which amounts to 2.35ppl (10ppg) including VAT savings.

THE Government's fuel duty cuts present savings that amount to 'small change' for many fleets and concern is growing that the Budget savings are not being passed on to customers immediately. According to an AA survey 46% of 6,500 petrol stations failed to cut prices after Chancellor of the Exchequer Gordon Brown's Budget 2001.

CHANCELLOR of the Exchequer Gordon Brown has placed hydrogen fuels at the centre of the Government's future policy on fuel which will be backed up with major tax incentives for 'green' fleets. The announcement gives fleets the clearest indication yet of future Government policy on fuels.

VEHICLE, bus and rail company Arriva has reported record operating profits from its daily rental business following re-organisation. With improved fleet utilisation and better market conditions, Arriva Daily Rental reported record operating profits of £9.3 million on turnover of £80.6 million for the year to December 31, 2000, up from £7.7 million on turnover of £78.4 million in 1999.

DAILY rental charges at Europcar are set to rise by 5% - 8% across the board in the UK as the firm focuses on profitable business from fleets and private drivers alike. The announcement, which could add more than £3 a day to an average rental, comes as the firm is expected to reveal that losses in the UK were about £15 million last year, down from £54.6 million in 1999.

FLEET sales figures increased 4.4% last month as fleets continued to get to grips with the impact of the twice-a-year registration plate change. Fleet sales in February 1999 - the twice-a-year plate debuted the following month - totalled 45,118 and in February last year were 40,799. However, fleet sales for the year remain 8.4% down on the first two months of last year at 125,566 (2000: 137,065).

FORTHCOMING changes to the company car tax system are behind the sixth consecutive monthly rise in diesel fleet sales. In February fleet diesel sales were 28.5% up year-on-year at 8,172 (February 2000: 6,361) in a total diesel car market up 24.7% at 13,026 (February 2000: 10,450).

STRONG year-on-year van sales growth continued last month with panel van sales up 16.9% and light van sales up 11.5%. Following January's year-on-year increase February van sales in the sub-1.8-tonne category totalled 3,896 (February 2000: 3,493) to take sales for 2001 to 10,041 in total.

PERRY Group has pulled out of car dealerships after selling its Perrys Motor Sales business for £25.9 million to its management team. The deal is part of a shake-up at Perry Group as it restructures the business to focus on its network of nationwide crash repair centres and on parts distribution.

BUDGET Rent-A-Car general manager Roddy Graham has been made redundant as part of a major shake-up at the troubled rental firm. Graham, who had been with the firm for more than two years, will not be replaced and control of the UK business will pass directly to parent firm Budget International as part of a rationalisation programme.

VAN maker LDV has cut 130 jobs in an attempt to reduce costs and improve its competitiveness. The company hopes staff involved will take voluntary redundancy.

VOLKSWAGEN is to double the size of its Passat recall from 22,500 to 45,000 models in the UK because of renewed fears the steering rod may lock up. The move extends a recall that began in August 1999 when the steering rods were tested and changed, and takes the total recall figure to 300,000 models worldwide.

FORD Motor Company, the second largest vehicle manufacturer in the world, this week took 100% control of The Hertz Corporation.

A SURGE in service companies attending this year's Fleet Show has taken the total number of exhibitors to 70. Contract hire company Powermarque and glass replacement firm Auto Windscreens both signed up this week for the show at London's Alexandra Palace from May 1–3, and more service companies are expected to confirm their attendance in the next few days.

DISPOSAL experts have dismissed fears that the bubble of strong residual values over the past few months could be about to burst. Manheim Auctions has warned that following this month's plate change residual value growth could end, leading to a short term fall in RVs.

A MAJOR education drive on the new number plate system is desperately needed to avoid residual value uncertainty spreading throughout the industry. The new system to be introduced in September will be the first major change since 1963 and demand for a new plate car could lead to a flood of used vehicles pouring into the car market.

MOTORAUCTIONS Leeds has launched a website to help keep customers up to date with information on vehicle stock and prices. It will feature a 'salesroom' service to enable vehicle owners to input details of make, model, year and mileage to obtain information on likely auction values.

BRITISH Car Auctions Meacham site achieved average prices of 111% of CAP 'clean' during a sale for Nissan. The sale was the first in a programme for the manufacturer this year with Nissan Micra's achieving average prices of 122.8% of CAP clean and the Almera raising 118.4%.

A SPECIAL combined light and heavy commercial vehicle at BCA Belle View achieved a 90% conversion rate.

NEXT year's reform of company car tax is 'crucial' in shaping the future of Britain's car parc as more than 50% of new cars are bought by businesses, the Government has said. Although there was no mention of company car tax in the Budget 2001 statement, the Government, in papers issued after the Chancellor of the Exchequer's speech, repeated its stance.

THE lack of refuelling stations for alternative fuels remain the Achilles' heel of the drive for cleaner company cars. Martin Hender, Director of Fuel at ARVAL PHH, said the duty reduction announced in Budget 2001 for LPG fuel was deceptive, as very few motorists will be able to benefit from it.

ROCKETING demand for alternative fuels could lead to a cash crisis at the Government-backed TransportAction PowerShift scheme as demand for vehicles could overwhelm its grants budget. PowerShift provides grants to cover up to 75% of the extra cost of an alternatively-fuelled vehicle compared to its traditionally-powered counterpart, in a bid to kick-start demand for the fuels.

CHANCELLOR of the Exchequer Gordon Brown has put small engines at the heart of fundamental changes to the Inland Revenue Authorised Mileage Rates. The revised regime will force drivers to rethink their choice of car if they have to reclaim the cost of fuel used on business.

LEADING tax experts are warning fleet managers and their drivers to look ahead to see how they will be affected by major changes in the shape of Inland Revenue Authorised Mileage Rates. Drivers will either face a cut of hundreds of pounds or a rise of a similar amount in the level of support they receive, depending on the car they drive.

FLEET drivers who receive free fuel for private mileage will become an endangered species over the next year, as a 14% rise in tax on the perk wipes out any benefit for fleet employees. The increase, which is the fourth out of a five-year programme of rises - is less than the full 20% annual increase expected, because fuel prices, on which the increase is based, have fallen compared to this time last year.