There was a time, especially here in the UK when the name of Tata didn’t even show on the radar. Then the Indian company bought out Corus, the Anglo – Dutch steel firm, the largest Indian takeover of a foreign company. If this wasn’t enough this was followed two years later with the acquisition of Jaguar and Land Rover from Ford. The resulting column inches in the press ensured the Tata name would become recognised worldwide.
Fast forward to the 23rd March 2009 and Tata launch the long awaited Nano. The cheapest car in the world priced at a measly 100,000 Rupees (around £1,400). To say this car is basic may be a slight understatement, it is however a car and it gives millions of Indians the opportunity to move up from a scooter into their first proper car. Or so the marketing machine would lead us to believe.
With the PR that has been generated, there is a good chance the Nano may be a victim of its own success. The proposed factory in eastern India that would have built 250,000 Nano’s annually had to be relocated due to violent protests by local farmers delaying the initial launch of the car. As a result annual production will be 60,000 units from its factory in Pantnagar in northern India. Tata have however guaranteed the price for the first 100,000 customers, who will be picked using a lottery type draw. After that it may be a waiting list of around a year, depending on demand.
Assuming the demand is there production will have to be increased markedly for the Nano to break even, with some Indian analysts believing sales figures annually will need to be around the 350,000 number for a period of three years before that magic mark will be realised (others are forecasting six years). With the hype that has been created however, there should be no problem with demand and with the opening of a new factory located in Sanand in Gujarat production could be increased to 250,000 units annually by the end of the year.
So will the Nano have the rest of the car manufacturers quaking in their boots? At this point, probably not. However, there is a huge market out there in the developing world, a market that could see the Nano becoming the biggest small car in the world and if this scenario proves to be true Tata has plans to introduce the Nano in both Europe and the U.S. around 2011. Don’t expect to pick one up for the same price as the Indian model though, as to get the car through safety and emission controls will obviously add a premium. That said it may still be as cheap as £4,000.
Monday, 23 March 2009
Friday, 20 March 2009
Lexus Increase prices from April 1st
Lexus have announced price increases that come into effect from 1st April.
Increases range from around £200 on an IS 250 up to a whopping four grand or more on an LS 600h.
So if you are in the market for a little Alan Partridge luxury now's the time to get your deposit down.
Increases range from around £200 on an IS 250 up to a whopping four grand or more on an LS 600h.
So if you are in the market for a little Alan Partridge luxury now's the time to get your deposit down.
Wednesday, 18 March 2009
Scrappage – Cash for Your Old Car
There’s a new buzz word in the motor industry – Scrappage. Under this proposed scheme, consumers who have a car over nine years old, would be able to take it to a recycling plant and in return they would receive a voucher for two thousand pounds off a new, or up to one year old car bought from a dealership. Great for the car industry, great for suppliers, great for dealerships, great for recycling, great for the environment, great for everyone. Or is it?
Such schemes are already in operation in a number of countries and in most cases they have noticeably increased sales in new cars, boosting their economies, helping to keep car workers employed and taking high polluting vehicles off the road. On the face of it, it looks like a no brainer for us in the UK too.
Lord Mandelson – the man that’s made more comebacks than Rocky – is apparently in advanced talks to approve a deal that would see £500 million earmarked for such a scheme in the UK. If only he knew we only really make other peoples cars. The majority of our car industry went to the wall years ago. Sad as the figures are, the fact is that 78 percent of the cars produced in Britain are exported and 86 percent of cars bought in Britain have been imported.
As Scrappage schemes in other countries have shown, almost all drivers taking part would spend their £2,000 grant on small, highly fuel-efficient cars, cars that just aren’t produced in the UK. In fact the only cars that fall into this category are the MINI and the Nissan Micra, which in total make up four percent of the UK market. Meaning 96 percent would go towards subsidising factories on foreign soil. In Germany sixty five percent of the vehicles bought in their Scrappage scheme are produced in German Factories. This is closely replicated in France, with sixty two percent of vehicles being produced in French factories.
The Scrappage scheme would undoubtedly help the dealers in the UK. However, recently the discounts being offered by dealers has often exceeded £2000 and that obviously has not kick started the car market. If introduced would the dealers not just revert to the list price and knock off the two grand? If discounts of £7,500 off a Land Rover can’t get someone to trade in their banger, it’s doubtful if an extra £2000 will make much of a difference.
Finally, we move to the “green” argument, taking inefficient, polluting vehicles off the road and replacing them with shiny, new, highly fuel efficient vehicles, sounds great until you look at the fact that even for the most fuel efficient cars the carbon cost for manufacturing would outweigh the benefits gained. Indeed taking a car off the road after nine years would appear to be an act of recklessness when it comes to the environment. Philip Gomm of the RAC Foundation has been quoted as saying “Research shows that the optimal trade-in age, from an environmental perspective, is about 18 years. We would not want to see any old vehicle being scrapped, irrespective of age, without fully assessing the carbon emission implications of building a new one”. Scrappage may be the way to get some of the worst polluting vehicles off the road but it is by no means a “one size fits all” solution. It would be ridiculous if you could scrap your nine year old Citroen Saxo to get £2000 off a five litre Volkswagen Touareg.
Yes the automotive industry is in favour and if the polls are to be believed so is the UK public, but if you ask someone whether they would like £2000 off a new car their answer will no doubt be yes - even if they can’t afford one.
Is Scrappage the solution? First we need to work out the exact problem. Is it car sales? Is it the environment? Is it polluting vehicles? Or is it Lord Mandelson introducing a populist policy to support an ailing government? Time will tell.
Such schemes are already in operation in a number of countries and in most cases they have noticeably increased sales in new cars, boosting their economies, helping to keep car workers employed and taking high polluting vehicles off the road. On the face of it, it looks like a no brainer for us in the UK too.
Lord Mandelson – the man that’s made more comebacks than Rocky – is apparently in advanced talks to approve a deal that would see £500 million earmarked for such a scheme in the UK. If only he knew we only really make other peoples cars. The majority of our car industry went to the wall years ago. Sad as the figures are, the fact is that 78 percent of the cars produced in Britain are exported and 86 percent of cars bought in Britain have been imported.
As Scrappage schemes in other countries have shown, almost all drivers taking part would spend their £2,000 grant on small, highly fuel-efficient cars, cars that just aren’t produced in the UK. In fact the only cars that fall into this category are the MINI and the Nissan Micra, which in total make up four percent of the UK market. Meaning 96 percent would go towards subsidising factories on foreign soil. In Germany sixty five percent of the vehicles bought in their Scrappage scheme are produced in German Factories. This is closely replicated in France, with sixty two percent of vehicles being produced in French factories.
The Scrappage scheme would undoubtedly help the dealers in the UK. However, recently the discounts being offered by dealers has often exceeded £2000 and that obviously has not kick started the car market. If introduced would the dealers not just revert to the list price and knock off the two grand? If discounts of £7,500 off a Land Rover can’t get someone to trade in their banger, it’s doubtful if an extra £2000 will make much of a difference.
Finally, we move to the “green” argument, taking inefficient, polluting vehicles off the road and replacing them with shiny, new, highly fuel efficient vehicles, sounds great until you look at the fact that even for the most fuel efficient cars the carbon cost for manufacturing would outweigh the benefits gained. Indeed taking a car off the road after nine years would appear to be an act of recklessness when it comes to the environment. Philip Gomm of the RAC Foundation has been quoted as saying “Research shows that the optimal trade-in age, from an environmental perspective, is about 18 years. We would not want to see any old vehicle being scrapped, irrespective of age, without fully assessing the carbon emission implications of building a new one”. Scrappage may be the way to get some of the worst polluting vehicles off the road but it is by no means a “one size fits all” solution. It would be ridiculous if you could scrap your nine year old Citroen Saxo to get £2000 off a five litre Volkswagen Touareg.
Yes the automotive industry is in favour and if the polls are to be believed so is the UK public, but if you ask someone whether they would like £2000 off a new car their answer will no doubt be yes - even if they can’t afford one.
Is Scrappage the solution? First we need to work out the exact problem. Is it car sales? Is it the environment? Is it polluting vehicles? Or is it Lord Mandelson introducing a populist policy to support an ailing government? Time will tell.
Tuesday, 17 March 2009
BMW 116d – Greener than the World Green Car of the Year
So, you’ve got it in the bag, you are the producer of the “World Green Car of the Year”, what next? Sit back, relax and watch the plaudits roll in? Build a new shelf to put the awards on? Or, alternatively you could continue striving for better performance and better economy figures, which is exactly what BMW have done.
There must have been a few raised eyebrows when the “World Green Car of the Year” turned out to be a BMW. Renowned for producing luxury cars, the German manufacturer wouldn’t necessarily be top of the list for most people when it comes to the production of green cars. Not ones to rest on their laurels though, they’ve been at it again, with the introduction of the BMW 1 Series 116d. Greener than the World Green Car of the Year.
Powered by a four-cylinder, 1,995cc, diesel engine that produces 116 hp the 1 Series 116d three door can accelerate from a standstill to 62 mph in10.2 seconds (10.3 seconds for the five door) before going on to achieve a top speed of 125 mph, so it’s by no means a slouch. Its crowning glory though has to be its fuel economy figures and Co2 emissions, 64.2 miles per gallon on the combined cycle whilst emitting only 118 g / km. Figures that ensure that the owner of a 116d will only pay thirty five pounds per year for their annual road tax. Not bad for a two litre diesel in anyone’s books.
With two truly frugal cars in their line up BMW’s green credentials look better than most. The downside however for the Bavarian manufacturer has to be the falling cost in filling any fuel tank. During 2008, the spiralling cost of fuel forced many people to take a long hard look at just how much their car was costing to run. As a result many people decided the time was right to trim those bills right back. Today the situation has swung in the opposite direction. Fuel prices have fallen dramatically as a result of the worldwide credit crunch, petrol is cheaper in the UK than it has been for many years (around three) and as a result many of those who were hauling their belts in now find themselves loosening them off a notch or two.
The success or otherwise of the 116d may not lie in its technology or indeed its fantastic fuel economy figures. Its overall success may be determined by the oil markets and the worldwide economy. If petrol prices continue in their downward trend the 116d may need to be more than just the most parsimonious sibling in the range.
Finally, although the 116d would achieve 53.4 miles to the US gallon, it will not be appearing in our American cousins showrooms as the benefits of small diesel engines does not seem to have registered yet. However, as we have seen in the recent past, things change and sometimes they change quickly. When the price of diesel begins to climb once again as it inevitably will, BMW may find themselves with yet another winner in their green fingers.
There must have been a few raised eyebrows when the “World Green Car of the Year” turned out to be a BMW. Renowned for producing luxury cars, the German manufacturer wouldn’t necessarily be top of the list for most people when it comes to the production of green cars. Not ones to rest on their laurels though, they’ve been at it again, with the introduction of the BMW 1 Series 116d. Greener than the World Green Car of the Year.
Powered by a four-cylinder, 1,995cc, diesel engine that produces 116 hp the 1 Series 116d three door can accelerate from a standstill to 62 mph in10.2 seconds (10.3 seconds for the five door) before going on to achieve a top speed of 125 mph, so it’s by no means a slouch. Its crowning glory though has to be its fuel economy figures and Co2 emissions, 64.2 miles per gallon on the combined cycle whilst emitting only 118 g / km. Figures that ensure that the owner of a 116d will only pay thirty five pounds per year for their annual road tax. Not bad for a two litre diesel in anyone’s books.
With two truly frugal cars in their line up BMW’s green credentials look better than most. The downside however for the Bavarian manufacturer has to be the falling cost in filling any fuel tank. During 2008, the spiralling cost of fuel forced many people to take a long hard look at just how much their car was costing to run. As a result many people decided the time was right to trim those bills right back. Today the situation has swung in the opposite direction. Fuel prices have fallen dramatically as a result of the worldwide credit crunch, petrol is cheaper in the UK than it has been for many years (around three) and as a result many of those who were hauling their belts in now find themselves loosening them off a notch or two.
The success or otherwise of the 116d may not lie in its technology or indeed its fantastic fuel economy figures. Its overall success may be determined by the oil markets and the worldwide economy. If petrol prices continue in their downward trend the 116d may need to be more than just the most parsimonious sibling in the range.
Finally, although the 116d would achieve 53.4 miles to the US gallon, it will not be appearing in our American cousins showrooms as the benefits of small diesel engines does not seem to have registered yet. However, as we have seen in the recent past, things change and sometimes they change quickly. When the price of diesel begins to climb once again as it inevitably will, BMW may find themselves with yet another winner in their green fingers.
Monday, 16 March 2009
Vauxhall announce price increases
Vauxhall have announced they will increase the price of their range of vehicles effective 3rd April 2009 due to the continued weakness of Sterling against the Euro.
The increases will affect the majority of their passenger cars including the Agila £400, Corsa £520.00, Meriva £670.00, Astra £800.00, Astra Twintop £900.00, Zafira £885.00 and Insignia £990.00.
The delivery to dealership will also be increased by £26.09 + VAT
If you are looking for a new Vauxhall get your orders in now to avoid the increase.
The increases will affect the majority of their passenger cars including the Agila £400, Corsa £520.00, Meriva £670.00, Astra £800.00, Astra Twintop £900.00, Zafira £885.00 and Insignia £990.00.
The delivery to dealership will also be increased by £26.09 + VAT
If you are looking for a new Vauxhall get your orders in now to avoid the increase.
Thursday, 12 March 2009
You can now follow Broker4cars on Twitter
With new car prices changing so quickly at the moment, Broker4cars will now be tweeting on a regular basis keeping customers both old and new up to date.Sales Director Gary Bain said "With the world moving at an ever increasing pace this is a fantastic opportunity to keep our customers updated. Most people don't want unsolicited emails, so twitter gives us a platform where we can notify our followers of impending changes in discounts, or notify them of specific deals that we can offer".
If you want to keep up with any changes just visit https://twitter.com/Broker4cars and you can follow them there.
SAAB and Volvo Struggle on... For Now
With Ford and General Motors looking to make savings wherever they can, the future of both Volvo and SAAB is appearing to be a little bleak.
SAAB find themselves in the worst position, having filed for reconstruction last month, the so called luxury car maker is battling for its survival. Not helped by the fact that the extremely small range are in effect rebadged Vauxhall / Opels. Not really the cars to tempt the general public away from the Audi's, BMW's and Mercedes of the world.
So far governments throughout the world have propped up ailing car manufacturers, however there will inevitably be some casualties and the chances are it may be one of the Swedish brands that falls first.
SAAB find themselves in the worst position, having filed for reconstruction last month, the so called luxury car maker is battling for its survival. Not helped by the fact that the extremely small range are in effect rebadged Vauxhall / Opels. Not really the cars to tempt the general public away from the Audi's, BMW's and Mercedes of the world.
So far governments throughout the world have propped up ailing car manufacturers, however there will inevitably be some casualties and the chances are it may be one of the Swedish brands that falls first.
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