NEWS FROM EXCEL
19 July 2006 - British International Motor Show

British International Motor Show 2006 19 July 2006

LONDON, ExCeL, 20 - 30 JULY 2006
INTERNATIONAL BUSINESS DAY, 19 JULY
TICKETS AND INFORMATION http://www.britishmotorshow.co.uk/

Ford chief calls for more cooperation from industry stakeholders

Speaking at a conference during the motor show''s international business day, Ford vice president for Europe, Lewis Booth called for more cooperation from all stakeholders in meeting the challenge of climate change. While recognising the motor industry''s responsibility to cut emissions, he reminded his audience of business representatives that others had a role to play too.

''As an industry we continue to make improvements to our cars and our manufacturing processes'', he said. ''However, there is a considerable way to go before others, like the oil industry, accept its part in the integrated approach.''

Commenting on the role of government, Mr Booth welcomed the UK government''s efforts to balance taxes in a technology-neutral way. However, on other EU member states, Mr Booth was more critical. ''Others tend to have incentives based on individual technologies, often ignoring the most efficient and lowest emitting vehicles. This is completely cuckoo.''

Major car making boost for Wales

International business day, in association with International Business Wales, has today hosted a briefing to reveal new manufacturing investment for the principality. Project Kimber, the industry group headed by corporate doctor, Lord James of Blackheath, announced they are to build the recently-acquired smart Roadster at a South Wales site. Final talks are on-going, but the plans under discussion would see production start in mid-2007 with over 8,000 units produced in the first year.

The decision, which ends months of speculation, was announced by Cardiff University''s Prof Garel Rhys in a speech at London ExCeL, following consultation with prospective investors. It is being supported by the Welsh Assembly Government''s International Business Wales team which has secured provisional regional selective assistance grant aid for the project.

Professor Rhys described the decision by Project Kimber as a very significant development not just for Wales, but for the UK as a whole. ''It demonstrates that the UK and Wales are still efficient locations for the motor industry. This particular investment is based upon a proven product originally developed and made by one of the world''s foremost automotive companies.''

Industry boss urges higher profile for good news stories

Speaking during business day at the motor show, Christopher Macgowan, chief executive of the Society of Motor Manufacturers and Traders, urged the media to report more of the good news about the British motor industry.

''Of course there are challenges and no one would deny that job losses should not be reported. But what I find so frustrating is that so much of the good news about our sector - multi-million pound investments and new jobs - seem to end up on the cutting room floor.

For example, how many people outside our industry know that Ford has invested £240 million in the Bridgend engine plant, that car output is increasing at Toyota''s Burnaston facility or that the Leyland Truck plant is the most efficient in Europe?''

''These are just three examples. Yet these alone should be reason to consign comments about an ailing industry to the dustbin of history.'' This week Ford announced a £1bn investment in the UK for R&D. Meanwhile the motor show has hosted the launch of a number of British-built cars, including the Land Rover Freelander, Honda Civic three-door, Jaguar XKR and Lotus Elise S.''

No need for revolution in drive to boost dealer profits

Leading motor trade business advisor Mike Jones says that average dealers only make one per cent profit on turnover but the top ten per cent make 4.4 per cent. ''The key difference between the best and the rest is that the good guys keep sales costs under control and do a much better job with used car sales'', said Jones, speaking at a Motor Trader sponsored seminar on business day at the motor show.

''Good dealers actively train their sales people - daily; they don''t promote their most successful salesmen off the sales floor and stick them in offices remote from the action as sales managers. A good sales manager should be like a good head waiter, welcoming customers, handing them over to salesmen and taking a close interest in each deal.''

Most importantly, the best dealers sell more used cars than new and those they sell are priced below those the rest sell. The national average price for used cars is around £7,500, while those top dealers sell theirs for an average of £6,700. This means faster stock turn and better profit. Also, the best dealers don''t stick to one brand, even if they have a franchise. ''A one brand approach limits you to between one and 15 per cent of the market. And the good guys don''t sell many ex-demonstrators. The best dealers aren''t doing anything revolutionary; they''re doing what the rest know they should do, but forget to do'', Jones concluded.

Shadow Transport Minister focuses on lowering emissions

Shadow Transport Minister, Christopher Grayling MP, visited the show today on International Business Day and declared emissions to be his number one target for the car industry.

''This is a central part of the transport strategy which we are taking into the next election'', he said. ''It is clear that the car manufacturers are making great efforts in this area. Ford has announced a £1bn investment in environmental technologies, but it is evident here that the commitment goes right across the board to small, independent companies launching electric vehicles.

''The show is also demonstrating the strength of the UK motor industry despite some recent turbulence. It''s good to see British-built products like the new Land Rover Freelander being launched here and the new Civic which is coming out of Honda''s Swindon plant.

''On a personal note I love the concept cars, particularly the Maybach Exelero. I think I''ll have to stick something smaller, but I wouldn''t mind having a test-drive!''

Saab seeks support for biofuel highway

Saab is showing the world''s first hybrid vehicle with no fossil fuel emissions at the British International Motor Show - the first time it has been seen outside Sweden.

The BioPower Hybrid Concept Car, based on a 9-3 Convertible, features a bioethanol engine and an electric drive system. Bioethanol is made from agricultural crops, so it is completely sustainable. Allied to an electric motor it uses the fuel only when necessary.

A success in Sweden, bioethanol is also an attractive option for fleets in the UK, as more businesses look to strengthen environmental policies.

''The only downside is the lack of supply infrastructure in some countries'', says Saab Automobile AB Managing Director Jan-Ake Jonsson. ''However, that is improving in the UK and I believe that bioethanol will be very popular here. In addition, the BioPower engine can run on anything from 100 per cent bioethanol to 100 per cent gasoline, so it is already a practical option. What we now need is governments to be more aggressive in supporting bio fuels.''

Prime Minister takes delivery of Renault F1

It takes a special type of driver to take a Formula One car up Whitehall in central London in the presence of Prime Minister Tony Blair. Step forward to the grid Damon Hill, the last British F1 champion, who was driving the championship-leading Renault F1 R25.

The special F1 demonstration marked the opening of the 2006 motor show and preceded an evening reception for senior figures from the motor industry at Number 10 Downing Street.

''This was only a small demo of the car, but I am proud to have taken part in this unique project'', enthused Damon as he stepped from Fernando Alonso''s car. ''The motor sport industry is among the crown jewels of Britain''s high-technology sector, and the level of expertise that we see in Formula 1 is the pinnacle. To have a Formula 1 car running in the heart of Whitehall, in the presence of the Prime Minister, is the most dramatic way possible of highlighting Britain''s standing in one of the most challenging sporting disciplines in the world.''

Hyundai''s brand profile aim is no illusion

Keen to use the prestigious platform of the motor show, Hyundai''s European vice president Gerry Dorizas told the world that the Korean car manufacturer will soon be one of the world''s leading brands.

His UK colleague, Tony Whitehorn, MD of Hyundai Motor UK added that since becoming an official subsidiary of the Hyundai Motor Company in Korea, deep foundations had been set to develop Hyundai in Britain. ''We are now working to a 10 year strategic business plan'' said Whitehorn. ''We are under no illusion that the kind of growth we are looking for in the UK, in terms of sales, our dealer network facilities and our brand positioning, will take time to achieve.''

Amongst the Hyundai cars on display at the show is the Santa Fe, presented for the first time in five and seven-seat versions.

www.britishmotorshow.co.uk/.

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