• New car registrations rose 6 percent in August to
67,006 units. This was the second successive month of growth and
builds on the 2.4 percent gain in July, as the scrappage incentive
scheme continues to influence the market positively. Registrations
from private buyers and of small cars were again up strongly in
August.
“New car registrations in August increased for the
second successive month, providing welcome news for the UK motor
industry. The scrappage incentive scheme is having a positive
impact but with consumer and business confidence still fragile,
there remain significant risks ahead. It is essential that these
early signs of recovery are sustained into 2010,” said Paul
Everitt, SMMT chief executive.
Go deeper with GlobalData
• The impact of the scrappage scheme and continued
strong returns on used cars are providing a “much needed” boost to
motor retail sector profitability.
Overall net profit on sales moved ahead
substantially for the six months to June 2009 at 1.4 percent
compared to 0.8 percent in 2008, according to business management
specialists ASE.
Scrappage scheme orders have reached
154,927 which has breached the halfway mark for the government’s
£300 million allowance to fund half of the scheme
• Equifax ScoreCheck shows that majority of top
motor retailers have average or above average credit scores. As the
motor industry waits to see how the 59 plate performs this
September, Equifax has revealed that despite challenging
conditions, the top motor retailers have maintained good credit
scores.
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By GlobalData• Arnold Clark is launching a massive recruitment
drive to take on 700 new staff by February 2010 – 500 of them in
sales, with 120 apprentices and 80 support roles. The new staff
will be deployed to support the retailer’s “new sales developments
and newly acquired sites in the north of England”.
• The Serious Fraud Office (SFO) has said it does
not intend to launch a criminal investigation into the collapse of
carmaker MG Rover. Its announcement comes a month after Business
Secretary Lord Mandelson asked the SFO to study the results of a
four-year independent report into the saga.
• A Swedish business consortium, keen to return
Ford’s Volvo unit to Swedish ownership and keep it out of Chinese
hands, has intensified its efforts to raise enough money to make an
offer for Volvo.
• General Motors (GM) has finalised a deal to sell
Saab to super car maker Koenigsegg. Both companies signed a
memorandum of understanding back in June, but the deal had stalled
over concerns with Koenigsegg’s lack of financial backing. However,
GM confirmed it has now signed a stock purchase agreement with
Koenigsegg Group.
• Tata has dropped its request
for £800 million of government funding for its Jaguar and Land
Rover brands after the company secured a commercial bank to
guarantee a £340 million loan from the European Investment
Bank. The manufacturer first requested state aid last
September.
• Used car sales fell by 6.6
percent during April to June this year which was the greatest
decline in used car sales volumes this decade.
