Industry News

• PricewaterhouseCoopers: automotive M&A valuations are unsustainable
• Ultra-low cost cars could take Britain by storm - KPMG
• Skills focus for next SMMT Supplier Campus
• Tata Technologies makes agreed bid for INCAT International
• Supervisory Board confirms DaimlerChrysler management changes
• Motorpoint prepares to open new Newport car supermarket
• US insurance case on non-OE crash parts may limit future class action lawsuits
• ReMIT and HSE to host free bodyshop health and safety event
• City & Guilds report forecasts future skills gaps
• Delphi to launch 10 new technologies at Frankfurt
• US student group pioneers “Roadcasting” – or ‘collaborative mobile radio’
• Bosch and Mann+Hummel form joint filters venture in India
• Nanjing Automobile flies in Chinese staff to reopen Longbridge canteen
• Ninth CAT Parts Distribution Trend Index report published
• High Security For Turkish GP
• Turkey Hopes for Grand Prix Tourism Boost
• Charges Against Schumacher Manager Dropped
• World Motorsports Symposium Confirmed
• Lotus Museum Planned

• European Commission clears French Kwik-Fit acquisition
• Road surfaces claim nearly one in six vehicle failures - Warranty Direct claim
• AIDB announces investigation into Deloitte’s role in MG Rover accounts
• INTERMET distributes solicitation materials to creditors in connection with plan of reorganisation
• TRW plans to close Sterling Heights, Michigan plant
• Ford Bridgend engineers build cardboard engine for production testing
• New Lotus circuit car will have first outing at Shelsley Walsh
• US-built full-size SUVs may escape revised CAFE regulations
• SupplierBusiness supplier conference at Frankfurt Motor Show
• DaimlerChrysler share transactions under formal investigation
• DaimlerChrysler UK warehouse staff take industrial action

• SBD publishes European telematics report
• Frost & Sullivan: Latent demand for better safety features promises €60bn European market
• Australia seeks British automotive electrician migrants
• JAMA publishes The Motor Industry of Japan 2005 review
• New technology drives supplier growth - ANE survey
• Magna announces record second quarter sales but lowers full-year earnings forecast
• DfT to trial RFID number plates
• Carter & Carter launch dealer F&I support division
• Turbo Dynamics appointed UK distributor for TiAL Sport turbo components
• SAE International tests robotic standard in Chicago
• New SAE standards prompt US brands to reduce bhp ratings
• Toyota tops Michigan University car satisfaction survey
• US firm markets additive for home-made bio-diesel
• US Engine Conference Moves to Orlando

• Visteon to expand Slovakian manufacturing operations for Kia
• Amicus protests at RAC call centre closures
• Hyundai contracts with Lex Logistics for aftermaket parts distribution
• BMW Group plans new entry level Rolls-Royce model - German report
• GM, Bosch and Stanford University collaborate on HCCI research
• UQM Technologies awarded contract to develop advanced traction motor for the FreedomCAR Program
• German cities plan to ban old diesels
• New Bosch electronic battery sensor improves cranking ability
• ASIMCO Technologies acquires NVH Concepts L.L.C.
• SAE schedules webcast on cost savings in automotive and aerospace markets

• Hitwise analyses past year’s UK automotive web traffic
• Car traffic static, goods vehicle traffic rises in second quarter
• EC decides on ‘period of tolerance’ for digital tachograph
• Collins & Aikman receives Grand Jury subpoena
• Carter & Carter plc buys Assa Training & Learning Ltd
• INTERMET receives Court approval of financing commitment
• Fiat Auto UK launches Croma with three years’ servicing and AA membership
• Uninsured drivers caught rise to nearly 1 in 10

Soaring private equity deals and valuation multiples in the automotive industry are unsustainable, warns PricewaterhouseCoopers in a news release of 19 August. Although investment in the automotive sector remains high amongst the private equity houses, it is doubtful this level of activity can continue, according to research conducted by automotive sector analysts in the corporate finance team at PricewaterhouseCoopers. High valuation multiples, post-investment performance and under-performing assets are causing concern and will cause a downturn in private equity investment in the sector.

Crucially, there are limited exit options, with few IPOs and little trade buyer interest: exits are dependent on an increasing number of secondary and even tertiary deals, which could dampen valuations over the medium-term.

Philip Wylie, Automotive Sector Leader, PricewaterhouseCoopers Corporate Finance, said: "Wholesale restructuring, continued consolidation and a fair number of distressed situations are all driving auto M&A, but the days of jumbo deals are over for the foreseeable future. Mid-market deals will certainly dominate during the next 12 months and private equity deals are likely to slow down. It will be interesting to see the potential impact of increased growth of Asia into Europe and the US."

The components sector continues to be at the centre of automotive industry consolidation, although the large US components groups no longer dominate. Many suppliers have been affected by pricing pressures from customers and spiralling raw material costs, which are rendering many suppliers vulnerable and leading to increased M&A activity.

M&A activity is declining in the vehicle manufacturer sector, with major consolidation having already taken place. Last year, VM M&A only accounted for nine per cent of the total compared with 17 per cent in 2003, and this trend is likely to continue, with M&A likely to focus on small bolt-on deals and strategic fill-ins.

In vehicle retail consolidation is slowly gathering pace, but will remain modest as the retail market remains fragmented and the revised block exemption rules have not made any dramatic changes to levels of M&A.

On the global outlook for the automotive industry, PwC notes that while the US is suffering from the strength of the euro against the dollar, Japan is gaining market share. Korean and other Asian car markets are expanding and the bigger Chinese VMs are likely to start exporting into Europe and the US. This is in stark contrast to the fortunes of the Western automotive world, which is likely to suffer increasing financial pressure throughout 2005, brought on by exposure to raw material price fluctuations and a high fixed cost structure.

Mumtaz Tahincioglu, president of the Turkish motorsport federation TOSFED, has revealed that nearly 3,000 armed security personnel will be on duty at this weekend’s Turkish Grand Prix Formula One race meeting in Istanbul.

Tahincioglu said, "What has happened around the world in recent months mean you have to do something extra. We have discussed those with the governor of Istanbul, the mayor of Istanbul and the Prime Minister."

"We have decided the security we had planned needed to be doubled. The measures taken here should be enough to make sure everything goes according to plan. I myself, and along with my colleagues, feel we are very comfortable with all the measures and to be honest take other occasions like the Champions League final where we had the same security system, that went very well. Once you have a system that works I think you don't want to change it.

"What we are doing here will definitely signal to people that there are serious measures taken here, don't try to do anything silly."

(Source: This Is London)

According to a report by the Reuters news agency this weekend’s Turkish Grand Prix race Formula One race meeting at the Istanbul Speedpark could eventually translate into $3 billion in additional revenues for the country’s tourism industry.

At a news conference Turkish Prime Minister Tayyip Erdogan said, "This event will make a big contribution to this country and for the economy. People talk about the financial value but you can't put a value on it in terms of the publicity which it brings to the country."

The Reuters story says that Turkey expects to generate some $18 billion from tourism this year, with events such as the Formula One Grand Prix, a round of the FIA World Rally Championship and a round of the Moto GP motorcycle racing world championship making significant contributions.

(Source: Reuters)

A German court has dropped charges of perjury and incitement to commit perjury against Willi Weber, the manager of Formula One drivers Michael and Ralf Schumacher.

In a Stuttgart courtroom on Monday Weber agreed to make a donation to a local charity and in doing so will avoid a further hearing in October relating to a dispute over management fees connected with Michael Schumacher.

In the mid 1990s Weber was alleged to have caused a former DTM race team manager Udo Wagenhauser to commit perjury when a Swiss motorsport journalist Burkhard Nuppeney laid claim to 50% of Michael Schumacher's 1989–1999 management fees. According to Nuppeney he entered into a co-operative management agreement with Weber to minimise their commercial risks but Weber alleged that Nuppeney had voluntarily withdrawn from the arrangement, and produced sworn statements from Wagenhauser to support his claim.

In 2004 Wagnehauser was jailed for a year by the Stuttgart Court after being convicted of perjury.

(Source: Stuttgarter Zeitung)

Racecar Graphic the UK based publisher of the motorsport technical magazines Race Tech and Race Engine Technology is organising The World Motorsport Symposium 2005 on November 10-11 at the Royal Air Force Museum in London.

The two-day event dedicated to race engine technology and racing car aerodynamics will be chaired by Nick Vaughan, Chairman, ImechE Automobile Division and Head of Automotive Engineering, Cranfield University. Leading speakers at the symposium will include: Mike Gascoyne, Technical Director, Chassis, Toyota Motorsports; Luca Marmorini, Technical Director, Engine, Toyota Motorsports; Alex Hitzinger, Head of Cosworth F1 Design; Dr Klaus Böttcher, Director of Bosch Motorsport; Claude Lory, Product Market Manager, Race Engine Coatings, Bekaert (Sorevi); Corey Smith, President, Xceldyne Technology and Prof. Gordon Blair, Professor Emeritus, School of Mechanical & Manufacturing Engineering, Queen’s University, Belfast.

The first day of the symposium will be dedicated to engines while the second will focus on aerodynamics. On the evening of the first day there will be an awards dinner at which the Race Engine Designer of 2005 Award, the Racecar Aerodynamicist of 2005 Award, and a number of Innovation Excellence Awards will be presented.

For further information e-mail info@racetechmag.com

A former racing driver is drafting a planning application to establish a museum at the London premises where the UK road and racing car company Lotus Cars was originally established in the 1950s.

John Scott-Davies, who raced Lotus cars in the 1960s and is now a chartered housing manager in Croydon, plans to open a museum at number seven Tottenham Lane, Hornsey where Lotus Cars founder Colin Chapman built his first cars

Scott-Davies said, "Colin Chapman put motor racing on the map in the 50s and 60s. We want to get the old works opened as a museum and an education centre for the community. We hope to promote some tourism as well. We thought we would look to try and achieve a rolling section of programs that would be of interest to the community."

Scott-Davies hopes to have about 10 classic cars in the museum with information on them and educational material.

(Source: Muswell Hill Journal)

Delphi Corp. plans to present ten new technologies and announce several new customer programs at the 61st International Motor Show (IAA) in Frankfurt next month, many of them focused on environmental protection and safety.

Delphi will show a new halogen-free, recyclable cable it says may be the most significant breakthrough in wiring technology in 30 years, and a first-ever integrated Driver Protection Module, which is said to offer drivers up to 27 per cent more protection from serious injury during a frontal collision based on crash simulations.

Anticipated new product introductions include:

- Low-cost Infrared Side Alert System, designed to help drivers be more aware of vehicles in their blind spots when changing lanes and making turns

- ‘Slush Cast TPO Skin’, which provides ‘low-cost interior luxury’

- New mobile aftermarket multi-media technology, including a new hands-free application using Bluetooth

- Innovative interior lighting technologies

- Diesel common rail for a new range of ‘prestigious’ passenger car engines

- A new air suspension system, roll-control system and adaptive cruise control for an SUV

- A new Power Sliding Door planned for a European application in a new vehicle sector.

As one of the suppliers that are increasing their contribution to value-added per vehicle, Delphi in 2003 registered the most patents of any automotive company.

- Delphi Diesel Aftermarket has added 14 new all-makes fuel filters to its diesel portfolio for the UK aftermarket, and launched a new filters catalogue. The latest additions cover over 100 new applications including BMW, Citroën, Fiat, Ford, Peugeot, SEAT, Toyota and VW models.

A bright future is being predicted for the new generation of ultra-low cost cars, even in badge-conscious Britain. Industry commentators at KPMG believe that this relatively new “ultra-economy” market segment, set to be headed by cars like the new Renault Logan, may surprise many people with just how successful it could be.

The arrival of these low-cost cars is timely as British car buyers’ affluence is giving rise to a new consumer trend called ‘rocketing’. This involves trading up to more expensive marques and models for the main car whilst clawing back some of the extra cost by down-grading the second – or even third – family car to a much lower cost car.

Mike Steventon, Head of Automotive at KPMG in the UK, commented: “Previous attempts by the major car manufacturers to sell economy models have not been a huge success as people have seen stripped-out city cars as a poor alternative to a one year old supermini such as a Fiesta or Corsa, for example. In addition, attempts to create so-called low-cost ‘world cars’ such as the Fiat Palio have not been a conspicuous success as the promised cost savings proved to be illusory.”

“However, it now appears that Renault may have cracked the problem with a solution that is creating waves throughout the industry. They have produced the Logan, a distinctly functional, medium-sized four door saloon which is slightly larger than the old Ford Escort saloon. The styling is deliberately boxy and the interior is designed to look simple and functional without straying over the line into being primitive. Originally intended for less affluent markets, its potential in Western Europe is making several other manufacturers sit up and take notice.”

By sticking ruthlessly to its cost targets and using as much existing technology as possible, Renault has been able to make a lot of noise in the market about the Logan’s theoretical base price of €5000 (£3500). Admittedly, this was the projected price for the completely bare version of the car aimed at markets like Russia. In Western Europe, that price goes up to €7,500 but that still translates into a UK price of just £4,995 for a spacious family saloon. Originally, Renault said that the Logan would not be made in a right-hand drive version, but they have now changed their mind and will introduce the car in the UK in 2007.

It is clear, says KPMG, that consumers now expect more from low-cost models than just a low price in return for small dimensions. According to sales data from the automotive consultancy Spyder Redspy, the market share of city cars in the UK has declined from 4.9 percent in 2000 to 3.7 percent today as they have found it increasingly difficult to compete with nearly-new superminis. Early sales evidence from mainland Europe is that the Logan is taking sales from used cars, not from more expensive Renaults, providing early evidence of the emergence of something genuinely new in the European car market.

The arrival – and commercial success – of the Logan has got the rest of the industry carefully considering its next move. Volkswagen is known to be working on a prototype called the 3-K; so-called because of its target manufacturing price of €3,000, which would subsequently translate into a Western European retail price of €7,500 – the same as the Logan. VW boss Bernd Pischetsrieder has publicly said that VW should recapture the market for basic transport. In response, Peugeot has said it will keep the 206 in production as its low-cost car after the 207 has been launched.

Mike Steventon continued: “Cars like the Logan can appeal to the public in two ways. They can appeal to buyers who are in the market for a genuinely low-cost car as their only vehicle. In addition, they can appeal to the tranche of buyers who are ‘rocketing’ their primary car up to something much more expensive and need to claw back some of that extra cost without ending up with a secondary car which looks cheap and primitive. This means that – even in fashion and badge-conscious Britain – these new ultra-economy cars could have a very bright future.”

(Source: KPMG)

A new digital radio technology called "Roadcasting" may allow drivers to tune their radios to music playlists coming from other cars within a 30-mile radius and transmit their own songs for people in other nearby cars.

The Pittsburgh Post-Gazette reports the idea was developed by former graduate students at Carnegie Mellon University working in conjunction with an unnamed car manufacturer, which it speculates is GM. The students' Web site, www.roadcasting.org, describes the largely theoretical technology as "collaborative, mobile radio."

The ‘roadcasting’ feature of a car's audio system would search for all digital playlists being played nearby, probably over some kind of mobile Wi-Fi network. The roadcasting screen would show songs and DJ names and then judge which offerings match your musical tastes, based on past listening habits. As you select songs, the software would keep refining and learning about your tendencies and would use them to find other songs that match them.

Developers say the concept would not allow for downloads of music files.

(Source: Edmunds.com)

The Society of Motor Manufactures and Traders says its next Supplier Campus event on 30 November and 1 December will be focused on ‘Providing Skills for your Business’, giving business training to delegates over two days.

Designed for directors and senior staff in small and medium suppliers, the agenda includes a speech by Sir Alan Jones, chairman of Toyota Motor Manufacturing in the UK. There will be panel sessions, nine seminars and five workshops and a dinner on the Wednesday night. Details are at www.suppliercampus.co.uk The event will be at the West Bromwich Moat House hotel and costs are from £250 + VAT, depending on the choice of detailed programme.

The Boards of Tata Motors and INCAT announced today that they have reached agreement on the terms of a recommended cash offer, made on behalf of Tata Technologies Inc., for the entire issued and to be issued share capital of INCAT, the London and Detroit-based engineering consultancy.

Tata Technologies Inc., incorporated in Nevada, is a wholly owned subsidiary of Tata Technologies and an indirect subsidiary of the Indian Tata Motors, itself part of India’s biggest conglomerate. INCAT is a publicly-owned engineering consultancy founded in 1989, and headquartered in London and Detroit.

The bid values INCAT International at approximately £53.4 million.

The Bosch Group and Mann+Hummel Filter GmbH, have signed an agreement to establish an equal joint venture for the development and production of filter systems in India. The Bosch Group owns 50 per cent of shares in the venture, divided between two of its subsidiaries; Robert Bosch Investment Nederland B.V. and the Indian Motor Industries Company Ltd. (MICO), and will be based in Tumkur, in the Indian State of Karnataka. The other 50 per cent of shares is held by Mann and Hummel Filter Private Ltd. a subsidiary of Mann+Hummel GmbH.

The joint venture will develop and produce filter systems including oil, fuel, air and car-interior filters for the Indian market as well as for export. The company will also provide support to the fast growing local automotive industry in both application and original equipment. In addition, high-quality filters will be made available to aftermarket, workshops and industrial applications. Production of filters is planned to commence by mid-2006 with some 350 employees. The joint venture represents an investment of some €6 million.

Bosch has been active in India since 1922 and now owns a 60.5 percent stake in MICO, which was founded in 1951 and is the largest automotive business in the country. The company works together with 4,500 authorized dealers in about 1,000 cities throughout India. Sales of MICO in the fiscal year of 2004 increased by 23 percent compared with 2003 to some 420 million euros. MICO has some 10,000 employees in four locations in India and plans to invest €180 million by 2007.

DaimlerChrysler’s Supervisory Board has confirmed that Dr. Dieter Zetsche (52), at present Head of Chrysler Group, will be appointed Chairman of the Board of Management of DaimlerChrysler AG as of January 1, 2006. In addition, he will become Head of Mercedes Car Group as of September 1, 2005.

Dr. Eckhard Cordes (54), Head of Mercedes Car Group, will leave the company at his own request on August 31, 2005, after 29 years of service.

Thomas LaSorda (51) will become Head of Chrysler Group as of September 1, 2005. On the same date, Eric Ridenour (46) will succeed LaSorda as Chief Operating Officer (COO) of Chrysler Group. Ridenour has been appointed as Member of the DaimlerChrysler Board of Management for a period of three years starting on September 1, 2005.

Car supermarket group Motorpoint is opening its fourth outlet next week, having acquired a 10-acre site from British Car Auctions in Newport, Gwent, already the home of other long established used car retailers. Motorpoint has existing outlets in Burnley, Derby and Glasgow, but Newport will be the largest of them when it opens on 24 August.

The site will carry £4-5m worth of used cars, and employ some 40 staff. Motorpoint first began trading in April 1998 and is the largest British group of its kind, and according to Hitwise data, the ‘busiest car retailer on the internet'.

(www.autowired.co.uk, www.motorpoint.co.uk)

State Farm Mutual Automobile Insurance Co., the USA’s largest vehicle and home insurer, has won the reversal on appeal of a $1 billion verdict in what is described as an apparent victory for business groups trying to limit class action suits in the country, which have often featured vehicle manufacturers in recent years. The Illinois Supreme Court decided that 4.7 million claims over State Farm's requirement for use of generic (non-OE) parts in car repairs varied too much to be grouped together.

State Farm said it was very pleased that the Illinois Supreme Court concluded that the company’s actions were correct. "As with all types of consumer products, the public benefits from open competition in the replacement parts business," said Kim Brunner, general counsel for State Farm.

In Avery v State Farm - formerly Snider v State Farm - Sate Farm was accused of breaching its contracts with its policyholders when it specified the use of non-original equipment (non-OEM) parts in the repair of vehicles damaged in crashes.

Over State Farm's objections, the suit covered the entire United States, except for Arkansas and Tennessee and some State Farm policyholders in Illinois and California, depending on the date of their respective crashes.

State Farm’s subsequent appeal to the Illinois Supreme Court was based on (1) the improper certification of the lawsuit as a class action, (2) the improper application of the Illinois Consumer Fraud Act to policyholders outside Illinois, and (3) the improper method used in calculating damages.

The ReMIT technician training centre in Croydon is hosting a free half-day awareness event for bodyshop paint sprayers, on Thursday 25 August 2005, and is part of an ongoing advice and inspection campaign by the Health and Safety Executive (HSE), who are collaborating with ReMIT on the event.

There will be two half-day sessions on the same day next week, Thursday 25, at 45 Imperial Way Croydon, CR0 4RR.

Advice will cover issues related to isocyanate paints - spray booths/spaces, how and why respirators fail, and dermatitis and how to avoid it The event is free.

(www.rmif.co.uk)

Rare Species, a new report by vocational training body City & Guilds, predicts where the skills gaps will emerge over the next 15 years and identifies strategies for government and businesses to prevent the shortages occurring. The automotive sector is not expected to face as much difficulty as construction, care worker recruiters, or several other skills areas.

In the league table of hard-to- fill positions in 2010, mechanics are put in 11th place. By 2020, the report suggests they will have dropped to 17th place, while jobs for chartered mechanical engineers will by then be the 20th most difficult to recruit for. In 2015, however, mechanics don’t feature in the report’s top twenty hard-to-fill positions at all. The full report can be downloaded from the City & Guilds web site.

(www.cityandguilds.co.uk)

The Financial Times today reports that Nanjing Automobile, which has agreed to pay £53m for MG Rover assets, last week brought in a team of cooks to reopen the canteen at the defunct firm’s Longbridge assembly plant, along with ‘scores’ of engineering and manufacturing staff.

The advance team from Nanjing had been deeply disappointed with British food and with local Chinese restaurants, according to one Briton involved in the negotiations quoted by the FT.

People familiar with the discussions between Nanjing and the GB Sports consortium which plans to be its partner for UK MG model development said at least another two weeks were needed before even the main points of an agreement between the two firms would be agreed.

The latest and ninth annual edition of the CAT Parts Distribution Trend Index report has just been published by automotive research firm Trend Tracker Ltd in association with CAT, the Haymarket aftermarket trade magazine. The latest in the series of attitude survey reports, based on telephone research questioning 400 managers of businesses operating across four automotive aftermarket sectors – retailing, independent and franchised wholesaling, and independent garages, covers training issues, parts delivery and strategies on specialisation versus market coverage.

The new report shows that motor factors are providing a quicker local parts delivery service than franchised dealers – due mainly to a broader range of components being held in stock locally. Because franchised dealer parts departments are mainly geared to feed parts to their own workshops, ordering parts for next-day delivery is still common practice.

Report author Brian Taylor says this policy is resulting in an average delivery time of 15 hours, which is not acceptable to many garage customers. Even when those dealers quoting 24 hours delivery or longer are excluded from the calculations (40 per cent of them), at an average of 3 hours, dealer delivery times are still much longer than those of motor factors.

More details about the report are posted on www.trendtracker.co.uk

The European Commission has granted clearance under the EU Merger Regulation to the acquisition of sole control of Kwik-Fit Group Ltd (Kwik-Fit) of the UK, by the French group P.A.I. Partners S.A.S (PAI), whose vehicle for the acquisition is called Speedy1. The operation was examined under the simplified merger review procedure.

PAI manages and advises dedicated private equity funds focused in several different industry sectors.

Intermet Corporation, the insolvent US Tier 1 cast-metal components supplier, announced on 17 August that it had begun distributing solicitation materials in connection with its proposed Plan of Reorganization. The United States Bankruptcy Court for the Eastern District of Michigan approved the Company's amended Disclosure Statement and the proposed solicitation and balloting process on August 12, 2005. INTERMET is distributing the Disclosure Statement and balloting materials to all eligible creditors in order to solicit their votes in support of the plan.

TRW Automotive U.S. LLC yesterday (17th August) announced its intention to close its Sterling Heights manufacturing facility in Michigan by July 2006. The facility has approximately 135 employees and assembles ball joints and conventional steering linkage for automotive manufacturers. Plans are to consolidate plant operations into other existing North American TRW facilities. Company officials met yesterday with employees to announce the planned closure.

Engineers at Ford’s Bridgend engine plant were thinking outside the box when they came up with the auto industry's first cardboard engine, says the company.

As the plant gears up for next year's introduction of a new six-cylinder engine for the Premier Automotive Group, its prototype centre sent a cardboard box substitute down the production line.

Putting together a cardboard engine is part of the detailed production planning process now underway at Bridgend. The aim was to ensure maximum efficiency by ensuring the engine passes all points on the assembly line without fouling or sticking.

Poor road surfaces continue to account for nearly 1 in 6 vehicle failures as the shortfall in annual road maintenance funding hits the £1bn mark, according to Warranty Direct, which frequently issues statistics on vehicle reliability and repair costs based on its customer claims data.

According to Warranty Direct, 17.1 per cent of reported car failures for the first eight months of 2005 were the result of suspension and axle damage, which may be linked to potholes. The average cost of repair notified to the company, so far, stands at £276.07 – compared to £185.84 five years ago in 2000.

Warranty Direct also notes that it has recorded a 42 per cent increase in the number of claims it handles where the vehicle owner subsequently refers the cost to local authorities for compensation over the past 12 months.

The most recent survey by ALARM (Annual Local Authority Road Maintenance) showed increases in claims by road users against local authorities for damage to vehicles due to road structural conditions over the past 10 years of 60 per cent in England (excl. London), 187% in Wales and 43% in London. It also revealed a near £1bn shortfall in road maintenance funding for 2004, an increase of almost 50 per cent. In 2004, local authorities in England paid out more than £810,000 in compensation. Records for Wales show a similar sum of £790,000.

The prototype Lotus "Circuit Car" will run for the first time at the oldest motorsport venue in the world, the Shelsley Walsh Hill Climb, during the venue’s centenary celebrations this coming weekend, starting 20th September.

Based on the aluminium chassis first seen on the Lotus Elise, and weighing in at around 650 kg, the single-seater car (with an option of two seats) has been designed and engineered solely for track days and club racing. It uses a 1.8 litre supercharged and intercooled engine mated to a 6-speed gearbox, and is estimated to get from 0-100mph in under 9 seconds, and from 0-62 mph in under four. The prototype car was designed and built in eleven weeks and production versions are scheduled to be built from mid-2006 at the Lotus headquarters in Hethel, Norfolk.

The car’s GRP composite bodywork designed by the Lotus Design team led by Russell Carr, Chief of Design, is bolted to the chassis for easy removal for maintenance and race/track preparation.

For further information about the Shelsley Walsh Centenary Festival Meeting, visit www.shelsley-walsh.co.uk

The US Administration is expected to abandon a proposal to extend fuel economy regulations to include light trucks such as Hummer H2s and other full size SUVs, according to a New York Times report.

The problem with the proposal for revised Corporate Average Fuel Economy measures outlined in 2003 is apparently that the full-size SUVs available in the US are manufactured by domestic manufacturers GM, Ford and Chrysler Group, and accordingly a restriction on their fuel economy would have given Asian and European competitors, already increasing their share of the US market, an additional advantage. Meanwhile, the Big Three have remained highly dependent on large SUVs for profits in their home market, though demand for them has recently waned with rising oil prices.

The final revised CAFE regulations, still being reviewed by the Office of Management and Budget, are due to be published before the end of August.

"Trends and Opportunities for the Automotive Supplier Industry" is the title of British automotive supplier specialist publisher on 16th September at the Frankfurt Motor Show. The only major Frankfurt event to focus exclusively on the supplier sector, the conference features speakers from BMW, Audi, Visteon, Tenneco, McKinsey, PwC and Deutsche Bank presenting the latest thinking on supplier strategies, business models, R&D, financing, as well as the latest financial and production outlook for the sector.

Confirmed speakers for Session 1 of the conference include:

- Introduction - John Henke, Professor of Marketing at Oakland University

and President of Planning Perspective Inc.

- Klaus Richter, Head of Materials Purchasing, BMW

- Klaus Alders, Head of Complexity Management, Audi AG, Germany

Confirmed speakers for Sessions Two and Three on Supplier Strategies include

- Heinz Pfannschmidt , Executive Vice President and President of Europe and South America, Visteon

- Hari Nair, Executive Vice President and Managing Director for Tenneco Automotive Europe and South America

- Glenn Mercer, Expert Partner, McKinsey & Company on supplier business models

- Philip Wylie, Automotive Corporate Finance Leader, PricewaterhouseCoopers on mergers and acquisitions

- Stephen Parker, Director, Ricardo on supplier R&D strategies

- Klaus Pflum, Managing Director of Deutsche Bank, Frankfurt on Supplier Financing

Session Four on the Economic and Production Outlook for automotive suppliers will feature presentations from independent forecasting institutions including PricewaterhouseCoopers AUTOFACTS, CSM Worldwide, Global Insight and JD Power.

For more details on individual speakers and information on how to register for the event, see www.supplierbusiness.com/iaa05.

A German financial services regulator, BaFin, announced on 17 August that had launched a formal inquiry into possible insider trading in German financial regulators have launched a formal inquiry into possible insider trading in DaimlerChrysler shares in July, around the time of the resignation of Jürgen Schrempp as chief executive.

DaimlerChrysler's share price rose by 9% on 28 July, before DaimlerChrysler’s announcement that Jürgen Schrempp was resigning with effect from the end of 2006, to be replaced by Chrysler Gorup CEO Dieter Zetsche. (FT, 18 August)

The AIDB (Accounting Investigation & Disciplinary Board), part of the Financial Reporting Council, has decided to investigate the conduct of Deloitte & Touche LLP as auditors and advisers to the MG Rover Group. Initially, the investigation will focus on the audits of the 2003 accounts of MG Rover Group Limited and its ultimate parent company, Phoenix Venture Holdings Limited and certain non-audit services provided by Deloitte & Touche to the Group.

This decision was taken following consultation with the ICAEW (the professional body of which Deloitte & Touche is a member firm), which has agreed that the matter should be investigated by the AIDB which has the power to levy unlimited fines and to ban individuals from working as accountants.

Rover’s collapse is already being examined by independent inspectors appointed by the Department of Trade and Industry on the recommendation of another Financial Reporting Council body, the Financial Reporting Review Panel. Under the terms of the Companies Act, Trade and Industry Secretary Alan Johnson announced the appointment of inspectors from the FRRP - Guy Newey QC of Maitland Chambers, Lincolns Inn and Gervase MacGregor FCA of BDO Stoy Hayward - to investigate and report on the affairs of the MG Rover Group, including Phoenix Venture Holdings Ltd and MGR Capital Limited on 31 May.

Deloitte yesterday said there was no evidence it had done anything wrong and that the investigation had been triggered only because of the scale of Rover’s failure. Deloitte claimed the Institute of Chartered Accountants in England and Wales, which referred the case for investigation, had “determined that it should be made abundantly plain to the AIDB that it has not found a prima facie case against Deloitte”.

(FRC, Financial Times)

Over two hundred staff at the DaimlerChrysler warehouse and distribution centre in Milton Keynes were involved in strike action on 16 August over pay cuts and the ending of paid breaks, reports Motor Trader. A Transport and General Workers Union spokesperson said it anticipated the strike action would hit the supply of component from the warehouse hard, as it coincided with a weekly delivery from Germany.

The organisers of the US Advanced Engine Technology Conference have confirmed that the 16th annual staging of the event will take place in Orlando, FL on November 28-30.

The AETC will be held at the Orange County Convention Center, the same building where the Performance Racing Industry Trade Show will take place from December 1-3 and will overlap the SAE Motorsports Symposium that will take place in the same building from November 29-30.

Prior to 2005 the AETC was traditionally held in Colorado Springs, CO in January and is attended by race and performance engine builders to hear expert speakers address a wide variety of subjects involving advanced race engine technology and participate in panel discussions and social gatherings.

Steve Lewis, producer of the PRI Trade Show said, “With the PRI Trade Show, the AETC and the SAE Motorsports Engineering Conference all being held the same week, in the same location in Orlando, it makes it easy, convenient and affordable for racing entrepreneurs and members of professional race teams to attend. For one week, Orlando is going to be the worldwide epicentre for the racing industry.”

For further information visit www.aetconline.com

(Source: Performance Racing Industry)

A new report from SBD analysing the navigation market and technology trends in Europe predicts that the market for portable equipment such as personal navigation devices (PNDs) and personal digital assistants (PDAs) will have doubled between 2004 and 2005, while sales of built-in vehicle systems will have increased by just 20 per cent. It concludes, however, that the soaring demand for portable systems gives vehicle manufacturers an opportunity to boost sales of OE embedded equipment to much higher levels.

SBD believes that vehicle manufacturers can overcome the perceived threat from portable devices by turning the consumer awareness they have generated into an opportunity to increase customer uptake of embedded navigation systems. This will require a combined marketing and technical strategy to enable vehicle manufacturers to specify navigation as a standard feature within their model grade structures.

The report, European Telematics: market trends and analysis of embedded and portable navigation systems, shows that navigation system sales are set to top six million by the end of 2005, with around 10 per cent of new cars having the equipment fitted on the production line.

Typically factory-fit systems are offered as comparatively expensive options, or as standard features on higher grade premium models. SBD suggests that significantly higher fitment rates could be achieved by 2008-2009 if car makers are prepared to meet the competition from the portable market by adding simple turn-by-turn systems to the standard feature list of more volume and premium models and by giving dealers better training in the advantages of embedded systems.

SBD’s research reveals how PNDs, which look good, are competitively priced and easy to use and offer a good range of features, are taking a larger share of the portable market than PDAs, which can be difficult to set up and install for in-vehicle use. As prices fall, PNDs are likely to claim an increasing share of portable sales in the next year to 18 months.

The report also looks at the off-board navigation services on offer in Europe, and considers their position in the future market for navigation in Europe.

Details of the comparative features and functions of embedded, aftermarket and portable systems are presented, together with charts of market growth and cost trends. The systems offered by principle vehicle manufacturers are also outlined, marque by marque.

Looking ahead to future technical developments, SBD predicts that the focus will be on enhanced map displays and graphics. This potential will come with the development of the first vehicle hard disc drive (HDD) systems.

For more details on the European navigation report contact SBD on +44 (0)1908 305101 or e-mail patrickstrauss@sbd.co.uk.

With the growing awareness of safety levels among drivers in Europe, automobile manufacturers expect a significant increase in demand for safety features. Although around 68.0 per cent of the respondents in Frost & Sullivan’s new study of the subject believe they have sufficient safety features, a significant 55.0 per cent acknowledged the need for additional safety mechanisms in their vehicles, thus reflecting the expectations of the manufacturers.

The study identified that the perceptions and desirability of respondents differ across countries. For instance, while Italian drivers are more likely to consider themselves to be good drivers (37.3 per cent), the majority of Spanish (72.3 per cent) and UK (61.5 per cent) drivers feel the need for additional safety features. Further, vehicle owners associate the concept of "vehicle safety" with features that protect occupants in the event of a collision rather than those that prevent accidents, indicating a strong inclination to associate safety technologies with traditional, passive safety features than with more advanced, active features.

"While differences exist in perceptions and desirability across countries, 'traditional,' occupant protection and braking technologies are preferred over newer active technologies across Europe," notes Frost & Sullivan Programme Manager Anil Valsan. "While anti-lock braking system (ABS) was the most preferred enhanced braking option, tyre pressure monitoring system (TPMS) and driver drowsiness warning (DDW) were accorded priority among the features that warn drivers of potential risks."

With the tendency of respondents to perceive vehicle safety as passive protection, it is not surprising that majority of respondents across Europe desire front and side airbags. What is worth noting is that respondents generally perceive more value in occupant detection systems than additional airbags.

Among features that aid driver vision, blind spot detection (BSD) and night vision system (NVS) were the most desirable features across Europe, with the exception of the United Kingdom. While European drivers generally accept different levels of adaptive cruise control (ACC), the study found UK drivers least likely to prefer anything beyond the basic ACC. Also, among features that help maintain the correct speed, intelligent speed adaptation (ISA) with warning was the most preferred option, whereas the technology that prevented drivers from exceeding the speed limit was the least preferred by respondents.

Only a small per cent of respondents were concerned about collisions with pedestrians. This concern was higher in Italy and Spain, reflecting the driving conditions in theses countries. However, a third of the respondents are willing to buy a vehicle that offers pedestrian protection, even if it costs more.

Although a reliable and proven technology was the most important attribute influencing the decision to purchase safety features, Frost & Sullivan also identified a number of regional differences. For instance, while manufacturers' reputation was among the least influencing factor across Europe, it had considerable influence on drivers with young children in France and on D and E segment drivers in Germany.

The study also found that the overall awareness of the European new car assessment programme (Euro NCAP) is low across Europe, with the highest being in France (36.0 per cent) and lowest in Italy (22.0 per cent). The prevailing opinion was that a Euro NCAP rating is insufficient to assess vehicle safety and that it should also administer more impact scenarios. Despite this, Euro NCAP ratings were found to be influential in purchase decisions, with 21.0 per cent of respondents more likely to purchase a vehicle with a good rating and 32.0 per cent admitting to considering the vehicle as a purchase option.

The study saw respondents consistently underestimating the price of existing safety features, indicating a clear lack of awareness about the cost of these features. With the existence of a psychological pricing "sweet spot", manufacturers can increase the uptake of safety features by pricing them closer to this range while simultaneously raising awareness levels through driver education.

Frost & Sullivan estimates that the European market for active and passive safety systems could generate over €6.60 billion by 2010, with active systems contributing over 53.0 per cent of the total. "However, manufacturers are facing a market that is currently resistant to new, active safety technologies and most of this is due to a lack of awareness," says Valsan. "Hence, the success of a safety technology is likely to depend on how well manufacturers communicate and educate drivers in the value of these technologies and their ability to enhance safety.

A ‘virtual brochure’, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Strategic Analysis of Active and Passive Safety Systems in Europe - Customer Desirability and Willingness to Pay (Passenger Vehicles), is available by e-mailing Magdalena Oberland - Corporate Communications at magdalena.oberland@frost.com with the following information: full name, company name, title, telephone number, e-mail address, city, country and source of information.

The Australian Government is seeking 20,000 skilled migrants, including automotive electricians, and is embarking on a campaign reminiscent of its 'Ten Pound Pom' campaigns of the 1950s and 1960s which recruited British migrants aggressively.

The Australian Department of Immigration and Multicultural Affairs will arrive in London in September to hold an expo showcasing Australia's culture and lifestyle to British workers. The Government hopes to attract skilled British migrants to the country's various regional states under recently relaxed regulations. The Government has expanded its migration program to include 20,000 extra spaces; a significant increase over last year's target.

The Australian General Skilled Migration program is points-based. Points are allocated based on age, language, skill, occupation and experience. Online assessments to determine points and eligibility can be found at www.visabureau.co.uk/australia/assessment/skilled/.

Applicants whose skills are deemed to be in high demand are given additional points and their applications fast-tracked. The Government is actively seeking automotive electricians, along with bricklayers, carpenters, cabinet makers, accountants, hair dressers, chefs and, pastry chefs, nurses and other skilled trades as listed on its Migration Occupations in Demand List (MODL).

The free online assessment can be obtained at www.visabureau.co.uk/australia/assessment/skilled/.

The Australian government says, “If you don't meet the points minimum it's absolutely worth chatting to a registered migration agent or state government representative about your options.”

According to the British Office of National Statistics, 191,000 Britons emigrated in 2003, and Britain still provides the largest percentage of Australia's skilled migrants every year. In 2003-2004 Australia welcomed upwards of 18,000 British nationals to its shores.

The Australian Government is also hosting recruitment drives in Amsterdam, Berlin and Chennai during the month of October this year.

The Japanese Automobile Industry Association’s latest yearly overview, "The Motor Industry of Japan 2005" has been released today. The English-language version is now viewable online, and includes an overview of the activities of the Japanese automobile and motorcycle industry, with a wide range of statistical data, history of global operations, environmental measures, social issues, etc.

The report can be downloaded from www.jama-english.jp/publications/MIJ2005.pdf

Aftermarket and training group Carter & Carter plc have established a new division to support motor retail networks with recruitment, training, process engineering, auditing and reporting in finance and insurance sales. Following the introduction this year of the regulatory requirements of the FSA, Carter & Carter say vehicle manufacturers, financial institutions and dealers increasingly need help, support, training and expert assistance in finance and insurance.

The company has appointed Stephen Whitton, formerly of Volkswagen Financial Services, Vauxhall Finance and, most recently, as part of the founding management of Confidence Europe, to head up and develop the new sector. Its work on F&I support has already begun with a number of major motor manufacturers and financial clients.

Point of sale motor finance provision to retail customers has seen market share fall in recent years with the expansion of direct lending in the form of personal loans from banks and building societies.

Turbocharging company Turbo Dynamics become the official UK distributor for TiAL Sport, an American company specialising in wastegates, blow off valves and accessories. Turbo Dynamics also distributes a range of Hybrid and Garrett ball bearing turbo chargers, supplying customers including VW Racing UK, SEAT Sport and Bentley.

(www.turbodynamics.co.uk)

Automotive News Europe has published its latest table of the top 30 European Tier 1 automotive component suppliers for 2004. The table ranks firms by their share of the market and comments that new technology, particularly electronics, has spurred market growth in terms of content per vehicle, despite a lack of vehicle production growth. Overall the combined revenue of the top 30 grew 17.3% from 2003.

Bosch is shown to be Europe’s top supplier as well as the world’s, followed by PSA subsidiary Faurecia and Magna, which climbed from tenth to third place – a position it now occupies globally too, with Delphi in second place. GKN, the only UK Tier 1 supplier in the European to 30, stands at 18 and 19 globally. Automotive News Europe notes that some of the figures quoted in the rankings are estimates.

(SMMT CV Newsbrief newsletter)

Magna International Inc., now the world’s and Europe’s third-largest automotive supplier yesterday reported financial results for the second quarter and six month period ended June 30, 2005. Magna posted record sales of $5.9 billion for the second quarter ended June 30, 2005, an increase of 15% over the second quarter of 2004.

The higher sales in the second quarter of 2005 reflects increases of 19% in North American average dollar content per vehicle and 16% in European average dollar content per vehicle, each over the comparable quarter in 2004. During the second quarter of 2005, North American vehicle production declined approximately 1% and European vehicle production declined approximately 3%, each from the comparable quarter in 2004. European complete vehicle assembly sales decreased 8% or $90 million to $1.05 billion for the second quarter of 2005 compared to $1.14 billion for the second quarter of 2004.

Operating income was $323 million for the second quarter of 2005 compared to $331 million for the second quarter of 2004. Magna earned net income for the second quarter ended June 30, 2005 of $225 million, compared to $188 million for the second quarter ending June 30, 2004.

During the three months ended June 30, 2005, Magna generated cash from operations before changes in non-cash operating assets and liabilities of $401 million, and invested $272 million in non-cash operating assets and liabilities. Total investment activities for the second quarter of 2005 were $260 million, including $205 million in fixed asset additions, $33 million to purchase subsidiaries and a $22 million increase in other assets.

Magna posted record sales of $11.6 billion for the six months ended June 30, 2005, an increase of 13% over the comparable period in 2004. The higher sales level in the first six months of 2005 reflects increases of 19% in North American average dollar content per vehicle and 16% in European average dollar content per vehicle, each over the comparable period in 2004.

During the first six months of 2005, North American vehicle production declined approximately 3% and European vehicle production declined approximately 4%, each from the comparable period in 2004. European complete vehicle assembly sales increased 1% or $24 million to $2.18 billion for the six months ended June 30, 2005 compared to $2.16 billion for the six months ended June 30, 2004.

Operating income was $577 million for the six months ended June 30, 2005 compared to $652 million for the comparable period in 2004. Net income of $397 million, compared to $367 million for the comparable period in 2004.

Full year results are expected to continue to be impacted by the negative conditions in the automotive industry, including weak automotive production, OEM price concessions, higher commodity costs and general economic uncertainty. 2005 results are also expected to be negatively impacted by one-off items, including rationalization and other charges associated with some operations, including those that supplied MG Rover, and restructuring charges arising from recently completed privatizations.

Magna expects 2005 average dollar content per vehicle to be between $710 and $730 in North America and between $305 and $325 in Europe. It expects 2005 European complete vehicle assembly sales to be between $4.0 billion and $4.2 billion, and that 2005 vehicle production volumes will be approximately 15.7 million units in North America and approximately 16.1 million units in Europe.

Based on these volumes and values and at current exchange rates, Magna expects its sales for 2005 to be between $21.6 billion and $22.6 billion, compared to 2004 sales of $20.7 billion, and that 2005. Magna warns investors it anticipates lower diluted earnings per share than it achieved in 2004.

An emerging standard in robotic technology is being brought to life through the Society of Automotive Engineers' collaboration with technologists in Chicago. The SAE AS-4 Unmanned Systems Standards Committee, commonly known as JAUS (Joint Architecture for Unmanned Systems), is improving a standard that will allow unmanned vehicles from different suppliers and government agencies to work together.

The development was put into effect in a small conference room in Chicago, where simulated unmanned ground vehicles from a variety of manufacturers successfully cooperated in a five-day experiment.

The experiment is the latest step in a series of tests that must be completed before the next version of the standard becomes available in 2006.

Organizations involved include: Air Force Research Lab, Applied Perception Inc., Applied Research Associates Inc., AMRDEC, Autonomous Solutions Inc., CoroWare Test Labs Inc., Intelligent Innovations Inc., iRobot Corporation, Harris Corporation GCSD, Navy Weapons Systems Center, SPAWAR Systems Center and the University of Florida Center for Intelligent Machines and Research.

The next experiment is planned for the final quarter of 2005 at Tyndall Air Force Base, Fla. The AS-4/JAUS standard will be tested on a variety of unmanned vehicles, both ground and airborne.

New horsepower tests developed by the Society of Automotive Engineers (SAE) are prompting manufacturers to roll back horsepower estimates for advertising purposes on some vehicles on the US market, including the Toyota Camry, America's best-selling car.

For the 2006 model year, Toyota says its 3-litre V6 Camry generates 190 bhp, whereas in 2005, the same car with the same engine promised 210 bhp. The revised ratings comply with new Society of Automotive Engineers standards designed to eliminate subjective interpretation in establishing horsepower claims.

Detroit's manufacturers say they have been conservative in calculating horsepower, don't expect to have to reduce horsepower ratings on many vehicles, and have actually raised ratings on some.

"From what we've seen so far, this is going to affect the Japanese and the Europeans a lot more than the domestic manufacturers," said Mark Brueggemann, senior market analyst for Kelley Blue Book.

The SAE amended its horsepower rules to eliminate some elements in the previous test regime that were open to interpretation, including the quantity of lubricant in a crankcase, the calibration of engine controls, and fuel quality.

US publication Transport Communications reports that the British Department of Transport is to test vehicle number plates containing RFD (Radio Frequency Identification) tags that can send VIN number data to readers more than 100m away. DfT gave the go-ahead for the microchipped number plates recently, with a trial expected later this year. A Department spokesman said the point of the test is to see whether microchips will make number plates harder to tamper with or clone.

(SMMT CV Newsbrief newsletter)

A new telephone customer satisfaction survey of just over 8,000 US vehicle owners from the University of Michigan has shown Toyota reaching the top score of 87 out of 100, echoing other such surveys conducted by J.D. Power & Associates and others. Owners were asked about their overall satisfaction and their satisfaction level compared to their expectations. They also were asked to rate how their vehicle compares to their ideal vehicle.

After Toyota came Honda, BMW, Cadillac and Buick in descending order. Ford scored the lowest CSI rating of 75%, 5% below the all-makes average score of 80%; by contrast, in the UK, the latest Which? reader survey showed Ford of Britain’s models having improved their score markedly.

(Source: DealersEdge.com/AP)

Diesel Secret Energy, LLC (DSE) says it has developed a simple method for creating an alternative diesel fuel from vegetable oil that requires no engine conversion or the use of harsh chemicals associated with making bio-diesel. The cost per gallon to users of the non-EPA approved fuel, assuming free supply of vegetable oil, is quoted at 46 cents per US gallon.

From www.dieselsecret.com/ for $39.95, a buyer receives a manual and video describing how the user can make their own homemade "fuel station" in a few hours plus a bottle of DSE’s additive. The resulting fuel is claimed to be cheaper and safer than making bio-diesel or any other alternative, and emissions on vehicles using this fuel are claimed to “far exceed those using petroleum diesel” – by which DSE can be taken to mean the opposite.

The fuel is also claimed to aid lubrication of diesel injection pumps, said to be an issue for many diesel owners since petroleum emissions regulations have worsened the lubrication properties of petroleum-based diesel. The home-made DSE bio-diesel can be mixed with mineral-based diesel.

An average car driver using DSE’s additive and recipe is promised savings about $1,200 to $1,500 richer per year, while for a large truck owner, the savings could be $25,000 to $30,000 a year. However, the home-made fuel has not been EPA approved, though it is apparently legal in California to make it for use in one’s own vehicle.

Visteon Corporation will expand its manufacturing footprint in Eastern Europe by building a ‘focused’ factory in Dubnica, Slovak Republic, dedicated to supporting Kia. Visteon's just-in-time factory will deliver climate control components to Kia for future models produced for the European market. Start of production is planned for December 2006. Kia is the second customer that Visteon will supply out of Slovakia, after PSA.

Visteon and its Korean affiliate Halla Climate Control (HCC) have been awarded substantial climate control business for Kia's European operations, including the heating, ventilation and air-conditioning module (HVAC), powertrain cooling module, compressor, air-conditioning hoses and temperature controls.

Visteon will be Kia's main systems integrator for the climate control system. Visteon's new Dubnica focused factory will be a hub for the supply of all Visteon climate control content to Kia in Slovakia, with components being manufactured across Visteon's worldwide facilities, including Slovakia, Czech Republic and Korea.

Visteon's focused factory in Dubnica will be laid out for a capacity of 300,000 vehicle units at full production by 2010 and can be expanded to higher production volumes. The building will cover 3,800 square meters on 12,000 square metres.

Earlier this year, Visteon announced plans for a manufacturing facility in Nitra, Slovakia. That facility is also underway. Visteon's Nitra plant is designed to become an important base for the production of plastics components for interior and climate control products to supply car manufacturers located in Eastern Europe. In Nitra, Visteon will also manufacture interior components as a supplier to PSA Peugeot-Citroen.

UQM Technologies, Inc., a developer of alternative energy technologies, has been awarded a contract by UT-Battelle, LLC, which operates the Oak Ridge National Laboratory (ORNL), to develop an advanced traction motor for the U.S. Department of Energy's FreedomCAR and Vehicle Technologies Program.

The $293,000 Phase I development effort will be conducted over a nine-month period with the DOE providing funding of $146,500 or 50 per cent. The development effort will be focused on permanent magnet traction motors using new and novel materials and configurations to reduce manufacturing costs.

Norwich Union yesterday told 330 RAC call centre staff their jobs at Darlington and Morecambe call centres would go as it was closing them as part of plans to cut 1,700 jobs in the newly-merged NU/RAC group and save £80m of cost over this year and next.

The Amicus union was furious that Norwich union failed to consult with Amicus over the planned job loses, believes that the way the announcement was handled breaches UK redundancy law, and will be applying for a protective award for the company's failure to consult.

- Norwich Union’s Aviva plc parent reported worldwide operating profit up 21% to £1,318 million on 11 August. Richard Harvey, group chief executive, commented in his shareholders report on the integration of RAC: “The acquisition of RAC was completed on 4 May and the integration has commenced and is firmly on track. We are excited by the opportunities now available to us and we are confident of achieving our stated 2006 target of £80 million of cost savings."

The pro-forma six months operating profit before tax for the RAC business was ahead of plan at £51 million (2004: £45 million), achieved during a period of uncertainty for the business. A profit of £17 million has been included in the Group results relating to the post-acquisition period.

(Sources: Amicus, Aviva)

Former RAC and now Norwich Union group subsidiary Lex Logistics has secured a new long-term contract with Hyundai Motor Company UK (HMUK), the new owners of Hyundai Car UK (HCUK) for the supply to the aftermarket of parts.

The contract covers a wide range of logistics and commercial services, in addition to warehousing and distribution these include inventory management, demand forecasting, product management, reverse logistics and dealer training.

According to a report in the German Sunday paper Welt am Sonntag quoting BMW Group R&D director Burkhard Göschel, BMW plans to build a new smaller model priced lower than the Phantom,at around £165,000, for launch at the end of the decade. Rolls-Royce is so far somewhat behind its original 2005 sales volume target of 1,000 units, with 285 Phantoms, priced at around £250,000, sold in the first half year.

A recent meeting of local authorities in Germany brought news that almost almost all metropolitan districts in Germany are planning some type of control over the movement of older diesel vehicles not equipped with particulate filters. Berlin and Frankfurt reportedly plan complete bans on such vehicles, according to the Bild newspaper of 13 August, though such moves would have to be sanctioned within a federal German transport policy.

The federal government decided last week to introduce a new regime covering urban air pollution to Bundestag at the end of this month. Urban centres would be required to limit airborne fine particulate matter to within an average 50mg per cubic metre for all but 35 days of the year. Small business interests are reported to be concerned about the effect of bans or limits on diesel vehicle traffic on business deliveries.

General Motors, Robert Bosch and Stanford University in California are embarking on a joint three-year, $2.5m programme of research into homogeneous charge compression ignition, or HCCI, which promises 20% fuel economy improvements and also lowers pollution from diesel engines. The news came from Gary Smyth, director of GM's power train systems research laboratory, during a media briefing at GM’s technical centre.

HCCI uses a flameless ignition method instead of a spark plug, similar to the compression ignition process of a diesel engine. The lower temperature generated by HCCI combined with a higher mixture of air to fuel raises fuel economy and virtually eliminates nitrogen oxide emissions from diesel engines.

Making HCCI technology work has been an ambition of several manufacturers for about 25 years, but it has proved difficult to control, according to Paul Najt, GM group manager of spark ignition engine systems: "We have to control precisely the temperature, pressure in the combustion chamber and we have to control that differently depending on the fuel that is used."

Bosch's role in the program is to develop sensors, actuators and other parts, while Stanford University is working on the physics of HCCI and training engineers to work with the technology.

Commercial implementation is expected to be “at least a few years away,” according to GM.

(Detroit News, 16 August)

Bosch has developed an electronic battery sensor (EBS) which it claims will help to avoid most of the breakdowns due to run-down batteries. The sensor with integrated evaluation capability measures such elementary battery physical variables as voltage, current and temperature. Aided by complex software algorithms, it computes all factors which accurately describe the condition of the car battery, even allowing for a situation-dependent forecast on the future state-of-charge.

In modern vehicles, this information is utilized in a targeted way by the car's energy management to preserve sufficient battery energy for a guaranteed fast engine start even after a prolonged period of non-use. When the information is utilized for the management of alternator and engine, it allows for lower fuel consumption and consequently lower exhaust emissions, and also prolongs the battery's service life. The Bosch EBS will be installed by an OEM in a car for the first time in 2006.

The electronic battery sensor from Bosch consists of a chip which comprises all of the electronics and a shunt for current measurement. The two are joined in an assembly unit with the pole terminal and can be directly connected to the car battery by fitting into the pole niche of commercial car batteries. Compared to other available solutions, Bosch claims this presents a great saving in space and costs.

Bosch developed the software for the battery state detection in the electronic battery sensor in conjunction with Varta, whose parent Johnson Controls recently acquired Delphi's European battery business.

ASIMCO Technologies Limited has acquired NVH Concepts L.L.C., a Michigan-based company that manufactures bushes, engine mounts and body mounts for the automotive industry. The acquisition creates a new business unit, NVH Technologies, which will provide ASIMCO Technologies with additional manufacturing presence in the US.

A new strong, lightweight composite material from NVH Concepts is said to be a potential replacement for heavier forged, cast, steel, aluminium or magnesium materials used to produce structural components. ASIMCO NVH Technologies, Inc. (formerly NVH Concepts L.L.C.) is currently working on programmes with several US OEMs to use the material.

Scott A. Wellman, founder of NVH Concepts, has joined ASIMCO Technologies as Corporate Vice President and head of the new NVH Technologies business unit, which now includes ASIMCO Technologies' moulded rubber facilities in Ningguo and Wuhu in China's Anhui Province, as well as the NVH Concepts facility in Michigan.

ASIMCO Technologies produces a broad range of powertrain, chassis components, diesel fuel injection and NVH products for both light- and heavy-duty applications. The company operates 18 manufacturing facilities and a network of 36 sales offices in China, three manufacturing facilities and a sales office in the US, and a sales office in the UK.

The Society of Automotive Engineers (SAE), in affiliation with The Minerals, Metals and Materials Society, is to present "Integrating Design, Manufacturing and Materials Models: Case Studies of Real Applications" in a live, interactive telephone/Webcast format on Thursday, September 22 at 11:30 a.m. - 1:30 p.m. EDT.

The moderator will be Dr. John E. Allison, senior technical leader at Ford Motor Company, with additional speakers including John J. Schirra - manager, Materials and Process Engineering, Pratt & Whitney, and Dr. Paul T. Wang – manager, Center for Advanced Vehicular Systems, Mississippi State University.

Featured topics will include:

- Approaches to integrate design, manufacturing and materials models

- Summary of successful methods used by automotive and aerospace markets

- Analysis of improvement in quality and reductions in design cycle time and cost.

More information is available at www.sae.org/tele-webcasts. Engineers, suppliers, managers, educators and marketing directors focusing on the research and development of products, materials and software are encouraged to join this broadcast. The joining fee is $345, which the SAE will waive for reporters who receive accreditation; e-mail requests to pr@sae.org.

A new report from web traffic analyst www.hitwise.co.uk on ca-related website traffic rcovers the period between May 2004 and June 2005; specifically looking at the Hitwise Automotive category, which includes sites of the automotive distributors, manufacturers, car dealerships, classifieds, automotive services, maintenance, motor sport and motorcycles.

In June, the category included 3,037 websites and had a total market share of 1.43% based on UK Internet visits.

Classifieds websites dominate the Automotive category, accounting for 41% of visits to automotive sites in June 2005. Classifieds is by far the largest Automotive sub-category, four times larger than the next largest sub-category, Manufacturers. The prominence of classifieds sites is exemplified by the dominance of Auto Trader and eBay Motors, the #1 and #2 ranked automotive sites, collectively accounting for one quarter of visits to automotive sites.

The automotive website that experienced the largest increase in market share of visits over the last year (May 2005 compared to May 2004), was Vauxhall (www.vauxhall.co.uk). The site’s market share grew by 336% during that period, most likely due to an email campaign, interactive games on the website and product releases. The effect of the campaign seems to have lead to a sustained increase in traffic levels. Prior to the campaign, the site received a smaller share of visits than BMW and Ford. As of the week ending 2 July 2005, the site enjoyed a comfortable lead over competitors.

EBay, search engines and other automotive sites are the primary drivers of traffic to automotive sites. www.ebay.co.uk was the second largest driver of visits to the Automotive parent category in June, responsible for 16.89% of visits to Automotive websites The vast majority of these visits went to eBay Motors.

Hitwise says search engine marketing should be a vital part of an auto manufacturer’s traffic strategy, as 34% of visits to manufacturer sites originated at a search engine in June 2005, compared to 29% for all automotive sites.

Online automotive research is largely name-driven, with nearly 4 in 5 search terms sending visits to automotive websites containing a product, site or brand name. 35% of search terms sending visits to automotive websites are for the brands of automotive manufacturers and part makers. The most popular online brand in June was Vauxhall. Vauxhall and BMW have been the most searched for manufacturers since early 2005.

Automotive sites attract 10% more male visitors than average for all websites. 57% of visits to automotive sites are from male internet users. All of the sub-categories of automotive websites attract more male visitors than average for the internet. Motorcycling and motor sport sites have particular appeal for male visitors with men representing 3 in 5 visits to sites in both of these categories.

When looking at specific car manufacturers, women are more likely to visit sites of manufacturers of compact cars. By comparison, men are more likely to visit websites of car brands such as Ferrari, Land Rover, Porsche, BMW, and Jaguar.

Analysis of Hitwise Lifestyle data reveals that segments most likely to own three or more cars are best represented on automotive sites. For more information, contact: Jannie Cahill on +44 (0) 20 7378 3600 or jannie.cahill@hitwise.com

The Department for Transport (DfT) has released traffic statistics for the UK in the second quarter of 2005. For the period of April to June 2005, the statistics show that traffic levels rose one per cent from the previous year, which continues the underlining growth trend since autumn 1999 of one to two per cent.

Car traffic remained unchanged, but light van growth was six per cent higher and goods vehicle traffic increased three per cent. In terms of road network usage, traffic on motorways rose by two per cent compared to the second quarter of 2004 and traffic on rural roads was up four per cent.

The European Commission has decided to grant a final period of tolerance for the introduction of the digital tachograph until 31 December 2005. The legal deadline for the introduction of the digital tachograph had been extended until 5 August 2005 but the EC now says an extra period of tolerance is needed. The digital tachograph must be legally recognised and accepted by all Member States from 5 August onwards.

Vice-President Jacques Barrot, in charge of Transport policy, has recently written to the Member States and to the Transport Committee in the European Parliament to explain the Commission’s position on the introduction of the digital tachograph. The Commission is of the opinion that the rapid introduction of the digital tachograph is of the utmost importance to the EU, not only for the enforcement of driving and rest times of professional drivers but also for the improvement of road safety and the guarantee of fair competition.

In its letter to the Member States of 21 April 2004, the Commission had already announced a moratorium to extend the deadline for the introduction of the digital tachograph from 5 August 2004 (the legal deadline fixed in Council Regulation (CE) 2135/98) to 5 August 2005.This decision was justified by the delays encountered by the tachograph manufacturers in obtaining type approval for their devices. This additional period should also have allowed the Member States to take all the legislative, technical and administrative measures needed. Finally, the aim of the moratorium was to ensure that Member States would not issue penalties to drivers of foreign vehicles entering their respective territories without a digital tachograph.

Since then, most of the problems encountered last year have been solved. All tachograph manufacturers have now obtained type approval for their equipment. They have started production, and are now able to supply vehicle manufacturers with enough equipment to meet their needs. The vehicle manufacturers have started to prepare their new production lines and the first vehicles fitted with digital tachographs have been delivered to the dealers.

Most Member States have set up the necessary legal frameworks and practical arrangements. A number of Member States have also started to issue the tachograph cards. In short, the investments made by the industry and the efforts made by the Member States enable the introduction of the digital tachograph as of today. From 5 August onwards, as foreseen, this equipment must be legally recognised and accepted by all Member States.

However, a certain number of Member States would like a final transitional period in which to finish putting in place the national legislation necessary for the general and compulsory introduction of digital tachographs and the parallel elimination of the analogue tachographs on new vehicles.

To this end, after consultation with all stakeholders and a discussion in the Transport Council at the end of June, the Commission considers it reasonable to grant a final period of tolerance until 31 December 2005.

In consequence, until that date, the Commission will abstain from initiating infringement procedures against Member States for a failure to introduce the digital tachograph on new vehicles. Member States may continue to permit the use of analogue tachographs on vehicles registered up until 31 December 2005, including those registered on the territory of another Member State.

INTERMET Corporation, the manufacturer of cast-metal components, has announced that the United States Bankruptcy Court for the Eastern District of Michigan has approved the company's motion to enter into an equity financing Commitment Letter under which R2 Investments, LDC, and Stanfield Capital Partners LLC have agreed to underwrite a $75 million equity investment in INTERMET in connection with INTERMET's proposed Plan of Reorganization.

The court also approved the company's amended Disclosure Statement, and the company's proposed solicitation and balloting process. INTERMET will distribute the Disclosure Statement and balloting materials to all creditors in order to solicit their votes in support of the Plan.

The confirmation hearing with respect to the Plan of Reorganization is scheduled to begin on September 26, 2005.

"The court's approval means that INTERMET is moving closer to exiting bankruptcy," said Gary F. Ruff, Chairman and CEO. "We look forward to emerging from Chapter 11 with a capital structure and strategy designed to strengthen our leadership position in the industry."

Collins & Aikman Corporation, currently in Chapter 11 bankruptcy protection, announced on 12 August that it had received a grand jury subpoena from the United States Attorney's Office in the Southern District of New York, seeking documents and information relating to the company's financial statements for the fiscal years 2000-2005, as well as documents and information pertaining to accounts receivable, customer and/or supplier rebates and other matters.

C&A says it intends to fully cooperate in responding to this request, as it has for similar information requests from the Securities and Exchange Commission. As previously announced, an independent committee of its board of directors initiated and has been conducting an investigation of these issues. The company said it could not currently comment upon the timing for completion of the investigation or any subsequent restatements that may be necessary as a result.

The Michigan-based Collins & Aikman Corporation is a specialist Tier 1 in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. (www.collinsaikman.com/)

- Collins & Aikman’s UK and other European subsidiaries have been up for sale through the London Kroll agency since July of this year. The UK subsidiary companies are six in number -

Collins & Aikman Holdings Ltd, Collins & Aikman Automotive Ltd, Collins & Aikman Automotive Fabrics Ltd, Collins & Aikman Automotive Trim Ltd, AS Collins & Aikman UK Ltd, and Collins & Aikman Automotive UK Ltd.

In the latest of a series of free or heavily subsidised aftersales offers from manufacturers, Fiat Auto UK is introducing a three year 'peace of mind' package for customers of its new Croma, which goes on sale here on Saturday, 20 August.

The package consists of three years'/54,000 miles free servicing at an authorised Fiat dealer, and three years' comprehensive AA cover, as well as the current two-year manufacturer plus one-year dealer warranty which is standard on the car. Fiat Auto's Croma package, which has a customer value of around £1,200, is available for £199.

The Daily Mail reported on 12 August that the number of drivers caught without insurance had risen by nearly a fifth in two years – to just under 272,000 drivers, or nearly 1 in 10 of all drivers.

Insurance companies have long said that £30 of the average insurance premium goes on paying policy holders’ claims for accidents involving uninsured drivers, and the EMB Consultancy has said that motor insurance premiums need to rise by 5% to cover rising legal and compensation costs. The worst areas for uninsured drivers are said to be East London, Liverpool, Manchester and Birmingham.

(Source: Daily Mail)

Carter & Carter Group plc), the provider of outsourced support services and learning solutions to automotive companies, has agreed to acquire Assa Training & Learning Limited for £24.2 million. Payment of £2.5 million of this total will be deferred until shortly after the announcement of Carter & Carter’s preliminary results for the year ending 31 July 2006. Assa is a leading UK provider of adult vocational skills training services, the majority of which are Government funded.

The acquisition broadens Carter & Carter’s customer base beyond the automotive sector, complements its existing Emtec apprenticeship business and provides further penetration

into the UK Government-funded training and learning market, which the directors estimate is worth approximately £1.3 billion.

The acquisition is expected to be earnings enhancing (before any impairments for goodwill and amortisation of other intangibles) for the year ending 31 July 2006. It will be part-funded by a placing of new ordinary shares to raise approximately £8m.

For the year ended 31 July 2004, Assa generated operating profit before the impairment of goodwill amortisation and exceptional items of £2.5 million (2003: loss of £1.2 million) on sales of £18.6 million (2003: £13.4 million). As at 31 July 2004, Assa had gross assets of £16.3 million (2003: £10.7 million).

Based in Washington, Tyne and Wear, Assa was founded in 1997 and was acquired by its current owners, Assa's senior management team and funds managed by ISIS Equity Partners plc, in September 2003. Since this management buy-out, Assa has continued to develop its services primarily from operations located in Washington, Sunderland and Lichfield in the Midlands.

Assa provides a range of productivity improvement and training services for the vehicle manufacturing, vehicle aftermarket and aftercare, general manufacturing, transport and logistics, food and drink and aerospace sectors. The majority of its programmes and services are Government funded. The firm is one of the largest UK operators of Learndirect adult vocational skills centres, operating a network of over 20 learning centres across the UK; offers a range of level 2 NVQs in the areas of warehousing and distribution, manufacturing and engineering operations, business improvement techniques and customer service; and provides apprenticeship programmes to Land Rover, Aston Martin and Jaguar through a joint venture company, AutoExel Limited.

On 20 April 2005, Carter & Carter announced its maiden interim results for the half year ended 31 January 2005, having recently acquired the AA’s technical training services business and won contracts to manage the Mercedes Benz, Chrysler Jeep and Mercedes Trucks manufacturer apprenticeship programmes.