Last month, I asked whether the UK car market had taken a blue pill. The reason I’d asked is because sales were rising despite the local “bangers for cash” scheme had ended months ago. Well, it appears that the effects are finally wearing off (I was going to say “flopping” but we’ve used that metaphor enough). The SMMT reports that UK new car registrations fell 13.2 percent in July 2010. This marks the first month in this year where sales dropped. This is expected to continue through 2010 as the market slows down. This is not surprising as the government cutbacks will start to take effect this year.
“A drop in private registrations compared to the scrappage-fuelled months of 2009 was expected and has brought the first market decline for 12 months,” said Paul Everitt, SMMT chief executive. “Subdued consumer confidence and a still fragile economic recovery make the outlook for the remainder of 2010 challenging, but a stronger than expected first half means full year volumes are still forecast to exceed 2009’s total.”. Another curious finding of the report was how diesel vehicles are now the dominant powertrain of choice, with market share up to 50.6 percent. Anyway, shall we take a closer look at the figures? Read More >
When you hear “McLaren” mentioned during Formula One races, do you sometimes want one? Now you can. Street legal. And a steal for only $280,000 MSRP. To make that dream possible, McLaren group has taken on £40 million ($63m) worth of loans from HSBC to finance the construction of a new factory in Woking, Surrey. The new factory will be the home of McLaren’s new super car, the MP4-12C (catchy name!). McLaren is forecasting to build 1,000 units in the first year of production, but within five years, McLaren is hoping to be building 4,000 units per year. One of the main selling points of the MP4-12C is the fact it’ll be able to get to 124mph in 10 seconds. It even has air brakes, implements usually used to bring jet fighters to a stop. Read More >
With all the hubbub over Volvo, it’s easy to forget that Geely already owns a foreign carmaker: Managnese Bronze, the company that makes London’s iconic black-cabs. Well, Geely doesn’t “own” Maganese, they hold a 19.97 percent share. That is about to change. Read More >
When I was a young copywriter, I wrote about a catalytic converter that was just newly introduced to Volkswagen. I proudly wrote that it “removes all harmful substances.” The copy came back. I was told to say that it “largely reduces the amount of “ a list of strangely named substances. I said I would never subject the poor Volkswagen customers to such nonsense. I then was called to Wolfsburg and had a meeting with a gruff engineer. He said: “Look, that thing lowers the amount of some bad stuff. But it lets stuff through, it may even create stuff that is much worse. It’s just that nobody is looking for it!” Read More >
Ford has once again snagged aid from a European government, as The Wall Street Journal [sub] reports that the British government has approved a £360m ($543m) guarantee on a £450 ($676.4m) European Investment Bank loan to The Blue Oval. The money will be used to fund a £1.5b ($2.25b) investment in four British Ford manufacturing sites. In an official statement, British Business Minister Mark Prisk said
[Ford’s] investment of GBP1.5 billion over the next five years is a great opportunity to take the lead in developing low-carbon manufacturing. This backing from the government will help to ensure the long-term success of manufacturing in the U.K. and make sure we are at the forefront of new technologies
The TaxPayers’ Alliance and Drivers’ Alliance last week calculated that UK speed cameras issued £87,368,227 (US $131,256,380) worth of tickets in fiscal 2009 without any demonstrable safety benefit. Since speed cameras were first installed on British roads in 1991, the roads became more dangerous than they would have been without photo enforcement, according to the report.
China’s Changan (joint venture partner of Ford, Suzuki and PSA) wants to draw on British engineering know-how and established a research-and-development center in Nottingham, England. Read More >
Audi is apparently cashing in on the universal paranoia of having your car at the dealer as well as the distinctly British love of video surveillance, by offering AudiDirect Reception, which allows owners to watch their car go through maintenance. According to a press release [via WCF], the new program makes Audi technicians wear video cameras and two-way communication systems, allowing owners to constantly watch over their shoulders and interrupt their work. Or, as Audi puts it
Candid cameras will soon be focused on all Audi Centre service areas as part of a new Direct Reception initiative being rolled out across the network that will enable Audi customers to view in ‘real time’, and communicate with, technicians as they carry out diagnosis and repair work.
The BBC reports that new car registrations in the UK have inexplicably risen 10.8 percent in June 2010 compared with this time, last year. What makes this “inexplicable” is the fact that sales have risen, despite the fact that the “cash for clunkers” scheme had ended on March the 31st, 2010. “The new car market continued to perform above expectations in June,” said the Society of Motor Manufacturers and Traders (SMMT) chief executive Paul Everitt said, “The results indicate improved business confidence and a strengthening economic recovery.” However, a quick look at the SMMT report reveals a potential answer. The article shows that fleet sales grew 25.3 percent. Those pesky fleet sales! Let’s take a quick look at some of the brands and their performance, shall we…? Read More >
Auto Express reports that GM is going to sell the Chevy Chevrolet Camaro in the United Kingdom by May 2011, with a convertible version later that year. It will only be available in the top level Gestapo SS trim, and will have the 6.2 litre, 426bhp V8 engine. Unfortunately, GM couldn’t be bothered to respect local driving customs and will sell the car in left-hand drive only. That’s right. Pricing is yet to be confirmed as exchange rates are sensitive at the moment, but GM is aiming to keep the pricing in line (I thought it was a V8?) with the Nissan 370Z, which starts at £28,345. Now while there are many American-philes (probably located in the North of England) who are doing a “dosey-doe” around their living rooms at this news, there are a few of problems (and here comes the pessimistic part). Read More >
Our aim is to raise the Lotus brand equity back to its rightful place as it existed in the 1970s when it competed with the likes of Ferrari, Porsche or Aston Martin. Maintaining the unique Lotus DNA is crucial, but with more relevance, greater efficiency and even more sustainability than we have had in the past.
Lotus’s owner, the Malaysian automaker Proton, is getting tired of steady losses, and is giving the legendary British marque five years to become competitive with the top-rung of European sportscar houses. That means more volume (from 2,500 to 8k annual units in five years), more marketing and (almost certainly) less of the stripped-down enthusiast utilitarianism that keeps the brand so beloved by hardcore handling fans. Oh yes, and Lotus is reportedly getting one more thing that every brand overhaul needs: a little Maximum Bob Lutz.
I don’t know whether you know, but the UK government has a deficit of £155b which needs to be slashed. On June the 22nd, Chancellor George Osbourne laid out his plans on how to eliminate that ugly budget gap. VAT would be increased to 20 percent from 17.5 percent, civil servants would have their wages frozen and benefits would be slashed. Yep, life is going to be pretty grim in the UK for the next five years. Unless you’re a multi-national company with an electric car up your sleeve. Read More >
After one year of ownership we would expect EV residual values to be above the segment average expressed in terms of pound values. But, if the battery is owned rather than leased, and lacks the appropriate extended warranty, the value of the typical EV will then fall dramatically until the vehicle is five years old, at which point the car will have a trade value little more than 10 per cent of the list price
So says Andy Carroll, managing director of the British car-buying bible, Glass’s Guide. He tells BusinessCar that Nissan and other firms launching EVs in Britain should take out the battery cost and lease it to customers with minimum monthly performance clauses. This, he says, would dispel concerns, drive sales, and transform the resale picture. It’s also what Project Better Place is doing, albeit in a complete regional package with battery-swap stations and charging infrastructure.
If there’s one reason we dedicate as many pixels as we do to the rise of speed cameras in the US, it’s the UK. We’ve seen how speed cameras have taken over Old Blighty, jamming the newswires with reports of mis-ticketing, unwarranted surveillance and popular backlashes against the dread cameras. But apparently the UK has decided that, with more speed cameras than any other nation on earth, it’s time to stop building more. Totallymotor reports that road safety minister Mike Penning has announced that his new conservative government will stop financing the construction of speed cameras by local authorities, bringing an end to a decade’s worth of camera build-up. Penning tells local authorities that they are free to purchase cameras with their own money, but that the government will encourage the use of alternative safety measures. Read More >
Toyota is getting out of the carmageddon-caused and recall-related funk and is moving forward with worldwide expansion plans. According to The Nikkei [sub], Toyota has resurrected all key projects planned before the financial crisis. Read More >
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