News - Page 2224

PEUGEOT has revealed its best UK profits for eight years following record sales last year which saw 181,564 cars sold of which 99,010 were bought by fleets. The record-breaking fleet performance - 55% of the Coventry-based manufacturer's UK registrations went to fleets - resulting in pre-tax profits of £52.9 million (1997: £52.5 million) on turnover of £2.39 billion (1997: £2.34 billion) last year.

KENT County Council is looking to axe £100,000 a year off its fleet budget by buying and registering its commercial vehicles abroad. High UK vehicle prices and fuel duties have led the local authority to investigate sourcing and registering its 500 vans, minibuses, buses and trucks in France, Belgium or the Netherlands.

CALLS have been made for the Government to take action to equalise fuel prices between Northern Ireland and the Irish Republic. The move is to stop motorists - including company car drivers - from driving south to fill up and benefit from savings of more than 20p a litre/90p a gallon.

A SHARP slowdown in car sales during the second half of last year coupled with an inability to cut costs quickly saw pre-tax profits at vehicle distributor Quicks slump 9.6% year-on-year to £5.3 million for the year to December 31 (1997: £5.9 million).

CONTRACT hire companies have displayed a 'woeful' lack of interest in supplying new products for fleet customers and must rethink their policies. Tom Stephenson, director of product management and strategic marketing at GE Capital Fleet Services alleged that the contract hire industry was failing to invest in providing the best for its customers and said many firms risked losing business to rivals by not meeting fleet demands.

CONTRACT hire and leasing companies have given a damning verdict to the Government's plans for road user charging. At the Government's deadline for replies to its consultation document Breaking the Logjam passed this week, contract hire bosses have branded the proposals 'crazy' following a presentation at the Leasing Life/BVRLA conference.

TOYOTA has reorganised and rebranded its fleet operation in order to spearhead a new sales push into the business sector. Toyota Fleet has replaced the ambiguous title of Toyota Corporate Business, which was originally chosen to describe the manufacturer's early, low-profile move into the small business sector.

A STRATEGIC alliance with Autoglass has played a key part in Toad, the car security company, reporting its first profit since its incorporation in 1993. In December Toad announced the deal with Autoglass to provide fleets with a single contact point for both Autoglass's and Toad's respective mobile services.

THE Outward Bound Trust is taking delivery of 10 vehicles on a contract hire full maintenance deal from British Car Contracts in partnership with Mazda. The Trust is to receive a variety of vehicles including 323, 626 and Xedos, from the Mazda range.

INCREASED outsourcing by fleets, dealers and manufacturers has contributed to booming profits at automotive industry logistics and support services company AutoLogic Holdings. The company, which operates in the UK, France, Belgium and Holland, reported a 40% rise in pre-tax profits for 1998 to £10.1 million (1997: £7.2 million) on turnover up 31% to £199.5 million (£91 million).

FORD has simplified its range of vehicle servicing and extended warranty plans for fleets and private motorists in a new scheme called Ford Service Connect. This offers six 'worry-free' motoring plans, compared to the 14 available under Extra Cover, the scheme it replaces.

THE contract hire and fleet management industry should brace itself for an 'exciting and rough' ride over the next five years as the pace of change in the industry quickens. Norman Donkin, director general of the British Vehicle Rental and Leasing Association, told delegates at a Driving Forward conference that the industry faced increased competition for business, growing demands to show their 'green' credentials and a continuing trend towards consolidation which would change the face of the industry.

POLICE have called on leasing and daily rental businesses to fund the fight to stem a rising tide of crime focused on the contract hire and rental industry. Cars are becoming harder to steal by 'traditional' methods, such as breaking in and 'hot-wiring' a vehicle and instead thieves are resorting to using false documents or violence to obtain keys.

FORMULA One-style gearchanges are to be brought to the UK car market by Alfa Romeo with the launch at the end of this month of the 156 Selespeed. With two buttons on the steering wheel, a sequential gear lever on the transmission tunnel, and a fully automatic transmission, the new 156 Selespeed brings Grand Prix-style technology to a conventional road-going car.

FLEETS which have run Peugeot and Volkswagen turbodiesel cars for the past three years are reaping massive rewards when disposing of them. The strongest performers are 306 turbodiesels and Volkswagen Golf turbodiesels which are securing auction prices far higher than forecast.

COMPANY car tax will be based on a sliding scale of charges related to carbon dioxide emissions of vehicles, Fleet NewsNet can reveal. Inland Revenue policy experts want to see the new benefit-in-kind tax regime, scheduled for April 2002, accurately reflect the emissions performance of every company car on UK roads.

THE Monopolies and Mergers Commission will investigate fleet discounts as part of a major, wide-ranging inquiry into the UK motor industry. John Bridgeman, director general of the OFT, believes the superior buying terms enjoyed by fleets which purchase no more vehicles than dealers is 'a major market distortion'.

PERRY Contract Hire is on the acquisition trail after a 30% increase in pre-tax profits made it a shining light in a disappointing set of results from Perry Group. A move away from very low margin fleet business cost Perry Group a 13% fall in its new vehicle sales last year, reducing its turnover by 1% to £510 million (1997: £517m), and cutting pre-tax profits to £8.6m (£10.1m), for the year ended December 31, 1998.

TELECOMMUNICATIONS giant BT has signed one of the biggest yet fleet orders for almost 6,000 Ford Transits over the next two years, worth in excess of £110 million at current showroom prices. The contract is for about 4,000 vans and 2,000 chassis cabs and the new deal sees Ford retain a significant chunk of BT fleet business.

COST-conscious companies which insist their drivers shop around for lower priced fuel, may not save themselves any money if their drivers go too far out of their way, according to PHH Vehicle Management. Budget fuel duty rises has meant most pump prices increasing nationwide.

RECORD sales and earnings for a sixth consecutive year in 1998 have been reported by upmarket motor dealer H R Owen. The company, which operates 24 different franchises from 36 outlets, reported pre-tax profits up 46% to £6.12 million (1997: £4.121 million) on turnover up 7% to £406 million (1997: £378 million).

TESCO has refused to rule out the possibility that its plan to sell scooters could lead to it retailing cars, claiming the final decision will be made by the customer. The company says that from June it will sell 50cc motor scooters, priced about £1,200, from selected stores.

BMW will announce on Tuesday, March 30, whether its financially-stricken Rover subsidiary will build replacements for the ageing 200 and 400 models in the UK. As the battle to save Rover's Longbridge factory - home of the 200 and 400 - enters the final stages it is expected that the Government will put together a package around the £240 million which BMW says it wants to encourage it to invest about £1.7 billion in the plant.

THE repercussions from the explosive boardroom resignations at BMW and Rover appears to have claimed another victim. Tom Purves has lost his position as Rover's sales and marketing director and has been given the position of heading BMW's American sales and distribution regions from next month.

GENERAL Motors and Volkswagen are poised to buy BMW if it fails in its bid to become a mainstream global manufacturer with the aid of Rover, according to Britain's foremost motor industry academic. BMW appears to be in a 'no win' situation in its dealings with Rover as without the grant from the Government it desperately wants it will struggle to achieve its position as a mainstream manufacturer and is becoming increasingly vulnerable to takeover.

FORD has formed a new luxury car group which will be headed by former BMW executive Dr Wolfgang Reitzle. He quit the German manufacturer in February in a row centred on the future of Rover.

ROVER lost £645 million last year - more than seven times the deficit recorded in 1997. The loss dragged BMW's profits down by 27% from £441 million in 1997 to £320 million which the company blamed in its restructuring of Rover, model changes, the delayed arrival of the Rover 75 and the strong Pound.

FLEET managers and drivers have given a massive vote of no confidence to the Government's measures to cut congestion and pollution. A survey launched by the AA to gauge the reaction from the fleet industry to the Government's 'green' initiatives, outlined in the White Paper on Integrated Transport last year, has revealed widespread opposition to practically all its proposals.

EXECUTIVES at Nissan Motor in Japan are expected to decide on the fate of a multi-billion pound merger with Renault on Saturday, March 27, which would create the fourth largest motor manufacturer in the world. As Renault formally launched talks with the Japanese firm it issued a brief statement saying that it was 'convinced' of the merits of a strategic alliance.

INDUSTRIAL gas company BOC Group has agreed a £10.5 million sale and leaseback deal for its company car fleet with multi-marque contract hire firm Alphabet. The agreement saw the sale of 1,000 vehicles from the 1,400-strong fleet, with the remaining vehicles disposed of through current channels. Replacements were provided by Alphabet, to complete the takeover of the fleet.