IMI Magazine

News: Bulletin Board

Saab's bid to restore RVs

The launch of Saab's new 9-5, the first model to be introduced since the company was taken over by Dutch supercar maker Spyker, is prompting a push on private and user-chooser fleet sales to drive up the brand's residual values.

 

Paul Adler, general manager of corporate sales for Saab GB, said the company was aiming to revert to a 60:40 ratio of retail and fleet, which it sustained until 2003 when corporate sales activity was merged with Vauxhall's. "Saab fleet sales grew largely on the back of the 9-3," said Adler. "Now we're aiming to return to the days when Saab's appeal was focused on private buyers and company user-choosers."

Adler, who spent 10 years in Vauxhall's fleet department, said the goal of "sensible volume with a sensible mix (between retail and fleet) and strong residuals" would be reflected in Saab sales - down from a peak of 27,500 to a maximum of 9,000 for this year, with incremental growth to around 20,000 over the next few years. Rental would continue to be part of the corporate sales effort "because it plays an important role in introducing people to the brand", said Adler.

Marketing manager David Pugh said that under Spyker ownership, Saab would be a "premium niche in modest volumes" and that the new 9-5 was benchmarked against the Audi A6.

Kudos for FLAG

The Fleet Auction Group (FLAG) scooped the award for best auction centre at this year's supplier awards organised by Motability Operations, the company that operates the Motability car, powered wheelchair and scooter scheme.

 

It's the second time FLAG has won the title for 'outstanding choice and customer satisfaction'. Co-chairman Martin Betts said: "The fact that we have won this award for the second time is a testament to the efforts of the whole team."

Picanto tops reliability league

 The Kia Picanto heads the latest reliability survey carried out by Which? Car, with the Land Rover Discovery 3 rated least reliable. However, the Korean supermini has not been recommended for purchase because Which? says it doesn't come up to scratch on safety features.

Which? best buy, based on reliability and safety, is the Mazda3. Equal third is another supermini, the Daihatsu Sirion, and the hybrid Honda Insight.

Japanese cars dominate the field, with seven cars in the top 10. Toyota retains its reliability rating overall, in spite of its recall problems earlier this year.

Both the Discovery 3 and Range Rover Sport feature in the bottom 10, prompting Which? Car to comment that "the company's 4x4s aren't quite as tough as their image".

Employer backing for vocational skills

 Most motor industry employers rate vocational skills higher than academic qualifications, according to a report from education organisation City & Guilds. From survey findings, it says six in ten automotive employers believe that the biggest benefit of people with vocational qualifications over graduates is that they already have the skills and experience to work for their business from day one.

Bosses also claim that employees with vocational qualifications are more likely to remain in their company and progress through the business. The benefits of apprenticeships are perceived to far outweigh the cost, with employers pointing out that "a high proportion" of apprentices go onto management roles.

Commenting on the Qualifications and Credit Framework (QCF), the new system for creating and accrediting qualifications, Chris Jones, director general and CEO of City & Guilds, said: "Our research reveals the extent to which UK employers recognise the importance of skills through vocational learning."

Oldies support 'refresher' tests

 With the number of older drivers set to more than double to over six million in the next 20 years, most of today's drivers aged 70-plus acknowledge the value of a refresher driving course and compulsory medical checks.

That's according to the latest RAC Report on Motoring, whose findings are supported by Sir Stirling Moss. "As an 80-year-old, I can clearly relate to the topic of elderly motorists," he says. "So many things have changed since we first started driving: road layouts have been altered and the density of traffic has risen enormously, especially in the cities.

"Though statistics show that we are less likely to be involved in an accident, we are more likely to be the cause of an accident, whether we are caught up in it or not - a sign that our reaction times are not what they once used to be".

• Other key findings of the report:

Biggest concern for motorists is the behaviour of other drivers, ranging from drink and drugs to mobile phone usage and the risk of accidents with uninsured drivers.

Environmental concerns have slipped down motorists' list of priorities, but most consumers would be encouraged to buy an environmentally-friendly new car if the tax incentives were better, or if there were repeats of the scrappage scheme.

Rising sharply up the motoring agenda are complaints about lack of road maintenance - nearly 90 per cent of drivers surveyed for the report say their local roads are getting noticeably worse.
n Another RAC report, this time analysing the causes of fleet vehicle breakdowns, is critical of manufacturers who no longer fit a spare tyre. It says punctures accounted for 8,000 patrol call-outs last year and comments: "If the vehicle has to be towed to a tyre retailer or garage, it will generally take up to half a day to get the vehicle back".

RMI reports record retention for its indy members

The RMI has revealed that it's in talks with a chain of vehicle service centres to join its independent garages' arm. If the recruitment is successful, the network will join the RMI's other big-name chain, Nationwide AutoCentres, which has 250 outlets.

 

David Moran, newly appointed head of RMI Independent Garages (previously called the Independent Garage Association), reports that, with around 3,000 members, numbers are going up "month by month", and retention is more than 90 per cent, "the highest it's been in two decades".

Moran attributes a large part of this success to better regional communication, with the appointment of ten 'relationship executives' to complement more than 70 members of staff looking after the interests of independent garage members.

As well as the menu of services on offer to members, ranging from technical to legal and marketing support, Moran gave a specific example of how his team approaches "the big issue" facing many independents, Block Exemption. "One member wanted authorised repairer status, but the manufacturer turned him down after an objection from the local franchised dealer. We pointed out that this member was buying £10,000 worth of OE parts a week and then pursued the Block Exemption route of access to technical information. Issue resolved!"

Answering criticism that the RMI is focused mainly on its franchised membership - a view expressed by those who have quit to join the newly formed Independent Automotive Aftermarket Federation - Moran said it was "an antiquated belief". He added: "The IAAF is an arm of parts distribution. We are absolutely independent, funded by member subscriptions."

Credit licence warning for dealers

Motor dealerships are being warned that they risk losing their credit licences if they fail to implement new legislation aimed at protecting consumers taking out finance deals.

 

The European Consumer Credit Directive was due to be enforced in June, but the deadline has now been extended to February 1 next year. From now until February is a transitional period.

"Rather than wait until the 2011 deadline, we would urge lenders in the industry to start giving the additional rights to consumers as soon as possible," said John Brannigan, managing director of FIMTRAC, the financial arm of motor industry consultants Rts. "The new directive means dealerships will have to make changes to the way they enter into agreements with their customers, as well as the agreements themselves," he added.

Changes affect all areas of credit agreements. Any advertising which talks about finance will need to carry additional information. Lenders will need to provide more comprehensive pre-contract information and they will need to check thoroughly a consumer's creditworthiness before entering into an agreement. Consumers will have a 14-day right to withdraw without having to give a reason and there is a new provision to enable consumers to make early repayment of their loan.

For more information, see the podcast on the Rts website:
www.rtsgroup.com