Car News & Views
Hi and welcome to my blog! As a car enthusiast I thought I'd set up a blog to natter about all things automotive. All posts/pictures are my own - I hope you enjoy. Feel free to add comments...
Sunday 9 April 2017
Europe’s most popular car colours revealed
Coatings specialist BASF reveals 2016’s most
sought after colours within Europe’s new car market
Saturday 18 March 2017
PSA Buys Opel/Vauxhall from GM Europe
The Viva; the first car to be manufactured at Vauxhall's plant in Ellesmere Port |
Although PSA and General Motors have been working on joint ventures for a few years now, (the first fruits of which will be hitting showrooms shortly in the shape of the Vauxhall/Opel Crossland X), I wasn't expecting a deal to be struck that will see PSA buy General Motors (GM's) European operations. After all, it was only a few years back when GM were seriously considering buying out the PSA Group; custodians of the Peugeot, Citroen and DS brands when they took a 7% stake. Ultimately, surely this is a prime example of how quickly things move on in the motor industry.
The tables have since very much turned. PSA were part bailed out by the French government and Chinese automaker Dongfeng a few years ago resulting in a far more efficient and revenue generating organisation following a bout of cost cutting and reorganisation implemented by head Carlos Tavares. Meanwhile, GM's European operations have continued to lose money. Indeed, the last full year Opel/Vauxhall made a profit for GM was back in 1999.
Why is this? Well, a lack of manufacturing efficiency is one reason. GM's European factories haven't been running at full capacity which effectively means less revenue is being made from each plant. Although sales of Opel/Vauxhall vehicles is respectable, (particularly in Britain under the Vauxhall brand), the demand Europe-wide hasn't been enough to increase the number of cars being built at each manufacturing plant.
Rather heavy discounting and less revenue per unit has been another long running problem at Opel/Vauxhall whilst expensive pension obligations and a lack of international demand outside of the European market have all contributed to General Motors decision to quit this market for good.
It's a momentous decision, (indeed Vauxhall has been part of GM since 1925). It will have big implications for the motor industry and certainly for Europe's automotive landscape and pecking order.
Last year, Vauxhall/Opel jointly sold approximately 1.0 million vehicles in Europe whilst PSA sold more at 1.5 million. Following this £1.9bn deal, PSA will be Europe's second largest automobile manufacturer, behind only the mighty Volkswagen Group.
Peugeot's Instinct concept, seen here at this year's Geneva motor show |
PSA will benefit from technology used in the electric Opel Ampera E; a car based heavily on the American market Chevrolet Bolt |
Although Vauxhall's plants at Luton and Ellesmere Port are reasonably efficient, there are many questions being raised about their future. Is the cost of manufacturing cars in the UK where the majority of parts come from a supply chain based more heavily in Europe mean that production moves abroad? What about concerns over Brexit? Will future Vauxhall/Opel Vivaro vans switch from Luton to France where they can share manufacturing capacity with the Peugeot Expert/Citroen Dispatch? Time will invariably tell; however, I expect that many Opel/Vauxhall factories and European governments will begin to lobby PSA in order to avoid the closure of their plants.
The last Peugeot to be produced at PSA's Ryton plant in Warwickshire |
Sunday 8 January 2017
Times are Changing for Car Dealers...
Tesla store at Bluewater shopping centre, Kent |
Whilst I was walking home from a bash in the early hours of New Year's Day, I began thinking how time seems to race along ever more quickly from one year to the next. It's frightening that this year will mark 15 years since I passed my driving test. I clearly remember the utter excitement of picking up my first car, a Peugeot 106 1.1 Independence from what was Clifford's Peugeot, just outside Gravesend.
The dealer was a small branch, an offshoot of a larger dealer based in Dartford; now part of the WJ King Group. I remember the layout; a small showroom with a few cars placed pretty much on top of each other, the odd sales exec's desk and the suspiciously plastic looking yucca plant catching dust in the corner. The service dept and workshop were in a separate building at the other end of a rather tight car park; a rather run-down affair with the de rigueur coffee machine and faded blue seating.
This is a far cry from the traditional mainstream car dealership today. Most are far more upmarket and welcoming places to spend time in; clean, smart, spacious and modern. A lot of the mainstream brands such as Vauxhall, Peugeot and Ford have clearly taken a leaf out of the corporate dealer look from marques such as BMW and Mercedes. Showroom cars are placed apart from each other creating a sense of space whilst a lounge area means customers can sit and relax. Crumpled brochures are now replaced by tablets where customers can freely spec their cars. I seem to remember Volkswagen being at the forefront of this new corporate look where regardless of the franchise, each site would have the same high-end design and layout.
The question now though is, are traditional car dealers heading towards extinction?
Think about it... For a start most aren't very accessible being based in out-of-town industrial estates. Potential purchasers will often make planned visits to their local branch after researching online whereas the average passer-by won't always have a clear view of the showroom products, let alone regularly stop and visit areas where such dealers are located.
Mini's latest eye-catching corporate dealer design. Inside, expect a youthful, funky image featuring televisions, tablets and a bar |
This brings me onto space. With manufacturer's ranges increasing into niches that nobody had ever thought of 10 years ago, (I'm looking at you Audi/BMW), how can an urban store with limited room inform visitors of a full model portfolio? Luckily, virtual reality headsets are coming on stream that allow customers to experience the cars as if they were physically there. Audi City London is an example where technology is bringing customers face-to-face with the cars in ever greater detail, despite space limitations.
And what about the business of buying your new car?
I predict dealerships will need to become ever more competitive in the services they provide thanks to the popularity of online car sales. Although manufacturers themselves are beginning to offer such services via their websites, (Hyundai, Smart and soon Peugeot are just some examples), car brokers and new car discount companies have been muscling in for years.
Some larger dealers even feature historic cars in their showrooms; this BMW Isetta adds a bit of heritage to the mix. (Would rather a 2002 Turbo though...) |
The discounts compared to the manufacturer's list price is the bit I get excited about though...and you don't even need to haggle. Indeed I took the plunge with my current car back in 2014 saving thousands. What's more, the process was so simple and efficient.
Don't think that the best deals are only on run-out special editions either. Great savings can be had on new-to-market models; whether they're from mainstream or premium brands.
Take the new Peugeot 3008 SUV on New Car Discount as an example. A car that's only just arriving in showrooms this month and garnering positive reviews from the motoring press can already be had with up to 22% off list price for a 1.2 GT Line. That's a saving of £5,842. Or how about over £16k off a BMW 650i Coupe? Try getting that at your local dealer...and no haggling necessary!
Times are changing for the traditional car dealership as they are for the car industry itself. Whether it's how you buy your new set of wheels to the dawn of the autonomous car, I expect things are set to progress quickly. Indeed, just like the passing of time...
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