Return of the One Car Family? The cost of motoring for Britain’s 30 million drivers has fallen 5% (£123) in 2009 to £2,219, according to the RAC’s annual Cost of Motoring Index. Despite this small reduction, an RAC poll revealed that eight out of 10 cash-strapped motorists still believe that the cost of running their car has risen. And in response nearly half of those surveyed (45%) have been making significant changes to their motoring lifestyle over the last year, such as reducing their car ownership and moving towards a one car household.The RAC’s Cost of Motoring Index focuses on the day to day running costs that have a tangible impact on motorists’ pockets. This includes road tax, fuel, insurance, maintenance and breakdown cover. For the first time the 2009 Index also calculates the annual running costs for used cars, which are apparently £2,744, i.e. 24% (£525) higher than for new vehicles.45% of motorists surveyed have made changes to their car ownership habits in 2009 and of these, a fifth have returned to running just one car. This group are saving on average £229 per month on the running costs of a used car according to the CoM Index. In addition to these new one car households, 28% of motorists stated that they’re using their car less and 6% admitted downsizing their vehicle for a smaller model. Unsurprisingly the need to save money was cited as the most common reason for making a change. And motorists are embracing these changes, with two-thirds claiming they won’t revert back once the economy improves.Commenting on this year’s findings, RAC motoring strategist Adrian Tink said: "It's been a tough year for motorists, and while it's good news that the costs of running a car have slightly dropped in the past 12 months, it probably won't feel like it at a time when the family budget is being squeezed from all sides. So despite the drop, the overriding desire for drivers is to cut back where they can. "We're seeing motorists really question how they use their cars. The trend towards the one car family shows how people are prepared to make fundemental lifestyle changes for the benefit of themselves, their families and their pockets. But such change for a lot of drivers is still merely an aspiration, with practical difficulties caused by work and family needs or a lack of alternatives, such as inadequate public transport, stopping them in their tyre tracks."Interestingly, women are apparently twice as likely to have downsized their vehicle in the last 12 months compared to men. According to the CoM Index, a motorist can save £769 a year by downsizing from a large saloon to a small car. Small cars (eg Vauxhall Corsa) are £235 (11%) cheaper than the average to run. By contrast, large saloons (eg Peugeot 407) and MPVs (eg Ford Galaxy) are £534 (24%) and £635 (29%) more expensive to run than the average.(November 2009)llllHomeNew ModelsIndustryGreen NewsOdds n’EndsMillbrook wins VCA contract for fifth consecutive yearAlthough car emissions are a subject often aired in the motoring media, it’s not always realised that the Vehicle Certification Agency keeps an eye on adherence to them not only at the launch of a new vehicle, but throughout its life too. Just as the private motorist must put his car through an annual MOT, which amongst other things checks whether the emissions are OK, so the manufacturers will have examples of their motors tested whilst in service.The VCA has awarded Millbrook Proving Ground the In-Service test contract for a fifth consecutive year. The test programme works to ensure that light duty vehicles meet the in-service emissions targets set by the European Commission for all legislated pollutants. This is an important factor in the UK Government’s commitment to reducing road transport emissions, and for the first time the contract includes the testing of hybrid vehicles, one of Millbrook’s key strengths.Millbrook will work with the VCA to test a selection of vehicles in use on Britain’s roads to compare their emissions performance to the relevant type approval standard. For the first 100,000km (62,137 miles) of their life, modern (Euro 4) vehicles are required to stay within emissions limits set by the type approval standards, the In-Service test programme checks this compliance. In cases where a statistically significant number of vehicles of one type fail to comply, the data will be passed to the agency that issued the approval for further investigation. “To win the VCA’s prestigious In-Service test contract for a fifth consecutive year is very important to Millbrook and a significant achievement for us as a business," explains Neil Fulton, manager powertrain engineering at Millbrook. "We pride ourselves on the strong relationship we have built with the VCA. It means a great deal to be involved in this testing which plays a key role in helping to protect the environment from vehicle emissions, as well as providing important data for vehicle manufacturers.”Fulton concludes: “Importantly, the contract award is a real testament to the ongoing investments we make in our expertise, training and equipment, particularly the area of hybrid vehicles. This once again confirms Millbrook’s position as the UK’s most efficient, capable and cost effective emission laboratory.”For more information about Millbrook visit www.millbrook.co.uk(November 2009)Volkswagen And Suzuki Agree To Establish Comprehensive PartnershipVolkswagen Aktiengesellschaft and Suzuki Motor Corporation have reached a common understanding to establish a close long-term strategic partnership. A framework agreement has been signed by representatives of both companies.In terms of global presence and product diversity, the partnership marks an important step towards the future for both Volkswagen and Suzuki. In terms of product portfolio, global distribution and manufacturing capacities, Volkswagen and Suzuki ideally complement each other. The companies plan a joint approach to the growing worldwide demand for more environmentally friendly vehicles. The management of Volkswagen and Suzuki have concluded that the complementary strengths of each company make for a perfect fit in exploiting their respective advantages as well as rising to the challenge of the global market.A joint communication from the two companies emphasised that in the automotive industry, where globalization and diversification proceed in parallel, both companies will establish a cooperative relationship while respecting each other’s independence as a stand-alone entity. Both parties are focused on achieving synergies in the areas of rapidly growing emerging markets as well as in the development and manufacturing of innovative and environmentally friendly compact cars.To support a smooth development of this relationship, Volkswagen will purchase 19.9% of Suzuki’s issued shares. The Closing of the transaction is subject to approval of the relevant authorities and is expected in January 2010. Suzuki intends to invest up to one half of the amount received from Volkswagen into shares of Volkswagen. Both companies will form a long-term strategic partnership based on this which will support their strategies in these challenging times.(December 2009)More Industry NewsRecession Sees Fleets And Drivers Count the Carbon and Axe the MileageMotor Show AxedFiat Come to Chrysler’s AidNo Motor Show in 2012 EitherFollowing a thorough consultation with the UK motor industry after the cancellation of the 2010 British International Motor Show, the Society of Motor Manufacturers and Traders (SMMT) has confirmed that the Show will not be reinstated in 2012.“The British International Motor Show has been a tremendously successful showcase for the UK motor industry. In recent years the show has played a less important role in influencing new car buyers and vehicle manufacturers are focussing their limited resources on events and activities that have a more direct impact on brand awareness and consumer decisions,” said SMMT chief executive Paul Everitt. “The UK has a strong, diverse and highly competitive motor manufacturing industry, home to globally successful companies and iconic products admired around the world. Both SMMT and the industry are committed to displaying the achievements of the sector and providing our customers with an opportunity to experience the full breadth of models available in the UK,” concluded Everitt.Despite the upward trend in attendance at the 2008 British International Motor Show, the economic downturn and unprecedented challenges facing the industry both in the UK and around the world made it impossible for the industry to commit to a 2010 event, leading to its cancellation in March 2009. 11,111,111th Polo Leaves Assembly Line At Volkswagen Group IndiaIn a neat arithmetical move Volkswagen have widened the scope for celebrations of model popularity. On his state visit to India, Prof. Dr. Horst Köhler, President of the Federal Republic of Germany, visited the Volkswagen plant in Pune. The German President joined Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen AG with responsibility for ‘Group Production’, and Jörg Müller, President and Managing Director of Volkswagen Group India, at the celebrations to mark the roll-out not of the millionth, nor even the 10-millionth, but of the 11,111,111th Polo ever produced.Heizmann welcomed the German President to the plant which was opened in 2009 and is a key element in Volkswagen’s growth roadmap in the Indian subcontinent. As Heizmann emphasized: "The scale of investment to date and the sustainable employment opportunities for people from the region underscore Volkswagen’s long-term commitment to India. The Polo built at the Pune plant demonstrates that excellent vehicles are created when German engineering prowess interacts perfectly with Indian skills."Volkswagen began building a hatchback version of the Polo specially designed for the Indian market in December 2009. "We are determined to bring the Polo’s European success story to India. Volkswagen will tap its opportunities in India with vehicles like the Polo, our modern plant in Pune and a highly-motivated workforce," Heizmann continued. "The visit by the German President, today’s production anniversary and the naming of Volkswagen Group India as "Automotive Company of the Year" just a few weeks ago inspire us to continue on the course we have set," Müller added.At the event celebrating the roll-out of the 11,111,111th Polo, the German President toured the new Volkswagen plant in Maharashtra State accompanied by a delegation of 30 high-ranking representatives from politics and industry. The group found out about the training programs for the newly recruited employees and the innovative production processes at the plant.The Pune plant is one of the most modern in the Volkswagen Group and covers all stages in the production process from press shop through body shop and paint shop to final assembly. It has a maximum annual capacity of 110,000 vehicles. In addition to the Volkswagen Polo, the Pune plant also builds the Škoda Fabia.With a total financial commitment amounting to 580 million euros, the Volkswagen plant in Pune is the largest investment to date by a German company in India. Volkswagen plans to employ some 2,500 people locally by the end of 2010.(Volkswagen - February 2010)Fuel prices “to rise by 15p a litre” in 2010MOTORISTS have been warned to expect petrol and diesel price rises of as much as 15p a litre this year, as new taxes and increasing market costs are passed on at the pumps. The January 1 increase in VAT back to 17.5% saw prices rise by around 2.5p a litre, with further jumps predicted throughout 2010 as the Government attempts to squeeze more revenue from drivers. By the end of the year Britain's 33 million motorists can expect to be paying 123p for a litre of unleaded petrol, up from the current average price of 108p. The Petrol Retailers' Association, which compiled the predictions based on analysis of tax changes and trends in the fuel market, said that motorists would be facing record prices by the end of the year. Brian Madderson, chairman of the PRA, said: '2009 has been a tough year and we are now looking at an even tougher year ahead. With pump prices averaging 108p per litre for unleaded petrol and 110p per litre for diesel in the lead up to Christmas, we might well see prices in the second half of 2010 in the range 120 to 125p per litre, setting record highs. Brace yourselves for higher fuel costs ahead.' As well as the restoration of VAT to 17.5% from 15%, the PRA has identified a swathe of confirmed and possible tax increases that will affect prices. From April 1 the Government has committed to raise fuel duty by at least 1p a litre, an increase that’s likely to be matched by the withdrawal of tax breaks for the production of biofuel. A widely-rumoured increase in VAT to 20% would add a further 2.5p to the cost of a litre of unleaded, while a post-election snap budget could see fuel duty go up by 2p in the autumn. The PRA report states: 'With all of these duty and VAT factors considered, this will equate to a 5p per litre increase in fuel prices by the beginning of April 2010 with the possibility of up to a 10p per litre rise solely from UK taxation by the fourth quarter of 2010.' (AA/Petrol Retailers' Association: January 5).Tired of Euro prices?Click here for a south coast getaway in Britain’s sunniest corner,where you can relax whatever the weather as you look over the boatsAdvertisement
Industry News
Return of the One Car Family?
The cost of motoring for Britain’s 30 million drivers has fallen 5% (£123) in 2009 to £2,219, according to the RAC’s
annual Cost of Motoring Index. Despite this small reduction, an RAC poll revealed that eight out of 10 cash-
strapped motorists still believe that the cost of running their car has risen. And in response nearly half of those
surveyed (45%) have been making significant changes to their motoring lifestyle over the last year, such as
reducing their car ownership and moving towards a one car household.
The RAC’s Cost of Motoring Index focuses on the day to day running costs that have a tangible impact on
motorists’ pockets. This includes road tax, fuel, insurance, maintenance and breakdown cover. For the first time the
2009 Index also calculates the annual running costs for used cars, which are apparently £2,744, i.e. 24% (£525)
higher than for new vehicles.
45% of motorists surveyed have made changes to their car ownership
habits in 2009 and of these, a fifth have returned to running just one
car. This group are saving on average £229 per month on the running
costs of a used car according to the CoM Index.
In addition to these new one car households, 28% of motorists stated
that they’re using their car less and 6% admitted downsizing their
vehicle for a smaller model. Unsurprisingly the need to save money
was cited as the most common reason for making a change. And
motorists are embracing these changes, with two-thirds claiming they
won’t revert back once the economy improves.
Commenting on this year’s findings, RAC motoring strategist Adrian
Tink said: "It's been a tough year for motorists, and while it's good
news that the costs of running a car have slightly dropped in the past
12 months, it probably won't feel like it at a time when the family budget is being squeezed from all sides. So
despite the drop, the overriding desire for drivers is to cut back where they can.
"We're seeing motorists really question how they use their cars. The trend towards the one car family shows how
people are prepared to make fundemental lifestyle changes for the benefit of themselves, their families and their
pockets. But such change for a lot of drivers is still merely an aspiration, with practical difficulties caused by work
and family needs or a lack of alternatives, such as inadequate public transport, stopping them in their tyre tracks."
Interestingly, women are apparently twice as likely to have downsized their vehicle in the last 12 months compared
to men. According to the CoM Index, a motorist can save £769 a year by downsizing from a large saloon to a small
car. Small cars (eg Vauxhall Corsa) are £235 (11%) cheaper than the average to run. By contrast, large saloons
(eg Peugeot 407) and MPVs (eg Ford Galaxy) are £534 (24%) and £635 (29%) more expensive to run than the
average.
(November 2009)
l
l
l
l
Home
New Models
Industry
Green News
Odds n’Ends
Millbrook wins VCA contract for fifth consecutive year
Although car emissions are a subject often aired in the motoring media, it’s not always realised that the Vehicle
Certification Agency keeps an eye on adherence to them not only at the launch of a new vehicle, but throughout
its life too. Just as the private motorist must put his car through an annual MOT, which amongst other things
checks whether the emissions are OK, so the manufacturers will have
examples of their motors tested whilst in service.
The VCA has awarded Millbrook Proving Ground the In-Service test
contract for a fifth consecutive year. The test programme works to
ensure that light duty vehicles meet the in-service emissions targets
set by the European Commission for all legislated pollutants. This is
an important factor in the UK Government’s commitment to reducing
road transport emissions, and for the first time the contract includes
the testing of hybrid vehicles, one of Millbrook’s key strengths.
Millbrook will work with the VCA to test a selection of vehicles in use
on Britain’s roads to compare their emissions performance to the
relevant type approval standard. For the first 100,000km (62,137
miles) of their life, modern (Euro 4) vehicles are required to stay within
emissions limits set by the type approval standards, the In-Service test
programme checks this compliance. In cases where a statistically
significant number of vehicles of one type fail to comply, the data will
be passed to the agency that issued the approval for further
investigation.
“To win the VCA’s prestigious In-Service test contract for a fifth
consecutive year is very important to Millbrook and a significant achievement for us as a business," explains Neil
Fulton, manager powertrain engineering at Millbrook. "We pride ourselves on the strong relationship we have
built with the VCA. It means a great deal to be involved in this testing which plays a key role in helping to protect
the environment from vehicle emissions, as well as providing important data for vehicle manufacturers.”
Fulton concludes: “Importantly, the contract award is a real testament to the ongoing investments we make in our
expertise, training and equipment, particularly the area of hybrid vehicles. This once again confirms Millbrook’s
position as the UK’s most efficient, capable and cost effective emission laboratory.”
For more information about Millbrook visit www.millbrook.co.uk
(November 2009)
Volkswagen And Suzuki Agree To Establish Comprehensive Partnership
Volkswagen Aktiengesellschaft and Suzuki Motor Corporation have reached a common understanding to
establish a close long-term strategic partnership. A framework agreement has been signed by representatives
of both companies.
In terms of global presence and product diversity, the partnership marks an important step towards the future for
both Volkswagen and Suzuki. In terms of product portfolio, global distribution and manufacturing capacities,
Volkswagen and Suzuki ideally complement each other. The companies plan a joint approach to the growing
worldwide demand for more environmentally friendly vehicles. The management of Volkswagen and Suzuki
have concluded that the complementary strengths of each company make for a perfect fit in exploiting their
respective advantages as well as rising to the challenge of the global market.
A joint communication from the two companies emphasised that in the automotive industry, where globalization
and diversification proceed in parallel, both companies will establish a cooperative relationship while respecting
each other’s independence as a stand-alone entity. Both parties are focused on achieving synergies in the
areas of rapidly growing emerging markets as well as in the development and manufacturing of innovative and
environmentally friendly compact cars.
To support a smooth development of this relationship, Volkswagen will purchase 19.9% of Suzuki’s issued
shares. The Closing of the transaction is subject to approval of the relevant authorities and is expected in
January 2010. Suzuki intends to invest up to one half of the amount received from Volkswagen into shares of
Volkswagen. Both companies will form a long-term strategic partnership based on this which will support their
strategies in these challenging times.
(December 2009)
More Industry News
Recession Sees Fleets And Drivers Count the Carbon and Axe the Mileage
Motor Show Axed
Fiat Come to Chrysler’s Aid
No Motor Show in 2012 Either
Following a thorough consultation with the UK motor industry after the cancellation of the 2010 British International
Motor Show, the Society of Motor Manufacturers and Traders (SMMT) has confirmed that the Show will not be
reinstated in 2012.
“The British International Motor Show has been a tremendously successful showcase for the UK motor industry. In
recent years the show has played a less important role in influencing new car buyers and vehicle manufacturers
are focussing their limited resources on events and activities that have a more direct impact on brand awareness
and consumer decisions,” said SMMT chief executive Paul Everitt.
“The UK has a strong, diverse and highly competitive motor manufacturing industry, home to globally successful
companies and iconic products admired around the world. Both SMMT and the industry are committed to
displaying the achievements of the sector and providing our customers with an opportunity to experience the full
breadth of models available in the UK,” concluded Everitt.
Despite the upward trend in attendance at the 2008 British International Motor Show, the economic downturn and
unprecedented challenges facing the industry both in the UK and around the world made it impossible for the
industry to commit to a 2010 event, leading to its cancellation in March 2009.
11,111,111th Polo Leaves Assembly Line At Volkswagen Group India
In a neat arithmetical move Volkswagen have widened the scope for celebrations of model popularity. On his state
visit to India, Prof. Dr. Horst Köhler, President of the Federal Republic of Germany, visited the Volkswagen plant in
Pune. The German President joined Prof. Dr. Jochem Heizmann, Member of the Board of Management of
Volkswagen AG with responsibility for ‘Group Production’, and Jörg Müller, President and Managing Director of
Volkswagen Group India, at the celebrations to mark the roll-out not of the millionth, nor even the 10-millionth, but
of the 11,111,111th Polo ever produced.
Heizmann welcomed the German President to the plant which was opened in 2009 and is a key element in
Volkswagen’s growth roadmap in the Indian subcontinent. As Heizmann emphasized: "The scale of investment to
date and the sustainable employment opportunities for people from the region underscore Volkswagen’s long-term
commitment to India. The Polo built at the Pune plant demonstrates that excellent vehicles are created when
German engineering prowess interacts perfectly with Indian skills."
Volkswagen began building a hatchback version of the Polo specially designed for the Indian market in December
2009. "We are determined to bring the Polo’s European success story to India. Volkswagen will tap its
opportunities in India with vehicles like the Polo, our modern plant in Pune and a highly-motivated workforce,"
Heizmann continued. "The visit by the German President, today’s production anniversary and the naming of
Volkswagen Group India as "Automotive Company of the Year" just a few weeks ago inspire us to continue on the
course we have set," Müller added.
At the event celebrating the roll-out of the 11,111,111th Polo, the German President toured the new Volkswagen
plant in Maharashtra State accompanied by a delegation of 30 high-ranking representatives from politics and
industry. The group found out about the training programs for the newly recruited employees and the innovative
production processes at the plant.
The Pune plant is one of the most modern in the Volkswagen Group and covers all stages in the production
process from press shop through body shop and paint shop to final assembly. It has a maximum annual capacity
of 110,000 vehicles. In addition to the Volkswagen Polo, the Pune plant also builds the Škoda Fabia.
With a total financial commitment amounting to 580 million euros, the Volkswagen plant in Pune is the largest
investment to date by a German company in India. Volkswagen plans to employ some 2,500 people locally by the
end of 2010.
(Volkswagen - February 2010)
Fuel prices “to rise by 15p a litre” in 2010
MOTORISTS have been warned to expect petrol and diesel price rises of as much as 15p a litre this year, as new
taxes and increasing market costs are passed on at the pumps. The January 1 increase in VAT back to 17.5% saw
prices rise by around 2.5p a litre, with further jumps predicted throughout 2010 as the Government attempts to
squeeze more revenue from drivers. By the end of the year Britain's 33 million motorists can expect to be paying
123p for a litre of unleaded petrol, up from the current average price of 108p. The Petrol Retailers' Association,
which compiled the predictions based on analysis of tax changes and trends in the fuel market, said that motorists
would be facing record prices by the end of the year. Brian Madderson, chairman of the PRA, said: '2009 has
been a tough year and we are now looking at an even tougher year ahead. With pump prices averaging 108p per
litre for unleaded petrol and 110p per litre for diesel in the lead up to Christmas, we might well see prices in the
second half of 2010 in the range 120 to 125p per litre, setting record highs. Brace yourselves for higher fuel costs
ahead.' As well as the restoration of VAT to 17.5% from 15%, the PRA has identified a swathe of confirmed and
possible tax increases that will affect prices. From April 1 the Government has committed to raise fuel duty by at
least 1p a litre, an increase that’s likely to be matched by the withdrawal of tax breaks for the production of biofuel.
A widely-rumoured increase in VAT to 20% would add a further 2.5p to the cost of a litre of unleaded, while a post-
election snap budget could see fuel duty go up by 2p in the autumn. The PRA report states: 'With all of these duty
and VAT factors considered, this will equate to a 5p per litre increase in fuel prices by the beginning of April 2010
with the possibility of up to a 10p per litre rise solely from UK taxation by the fourth quarter of 2010.' (AA/Petrol
Retailers' Association: January 5).
Tired of Euro prices?
Click here for a south coast getaway in Britain’s sunniest corner,
where you can relax whatever the weather as you look over the boats
Advertisement
