UK automotive sector misses out on revenue worth £25 billion due to lack of finance

Growing UK automotive businesses are missing out on revenues worth £25 billion because they lack access to finance that would unlock potential growth, according to new research. Analysis carried out by Wyelands Bank found that 96% of mid-sized automotive manufacturers with a turnover of £10 million to £300 million said they were held back due to a lack of finance. Each of the 305 automotive firms included in the study claimed that the difficulties raising finance meant each company missed out on an average of £24.8 million in revenues, and an average of 24 new contracts, which would have created 21 new jobs.

UK automotive sector misses out on revenue worth £25 billion due to lack of finance

May 10, 2019

Growing UK automotive businesses are missing out on revenues worth £25 billion because they lack access to finance that would unlock potential growth, according to new research. Analysis carried out by Wyelands Bank found that 96% of mid-sized automotive manufacturers with a turnover of £10 million to £300 million said they were held back due to a lack of finance. Each of the 305 automotive firms included in the study claimed that the difficulties raising finance meant each company missed out on an average of £24.8 million in revenues, and an average of 24 new contracts, which would have created 21 new jobs.

Car buyers moving online faster

Car buyers are spending a greater percentage of their shopping time online and less total time looking for a vehicle, according to a study by Cox Automotive. As a result, car buyers are visiting fewer dealerships and making faster decisions as online engagement rises. The research also found that dealers, OEMs and lenders have more to do to make the switch from digital to showroom seamless.

Car buyers moving online faster

May 09, 2019

Car buyers are spending a greater percentage of their shopping time online and less total time looking for a vehicle, according to a study by Cox Automotive. As a result, car buyers are visiting fewer dealerships and making faster decisions as online engagement rises. The research also found that dealers, OEMs and lenders have more to do to make the switch from digital to showroom seamless.

Enterprise launches vehicle subscription service

Car rental giant Enterprise Holdings, which manages the largest and most diverse privately-owned fleet in the world, has launched a new vehicle-subscription service. The Subscribe with Enterprise service will initially be available in three US states: Minnesota, Missouri and Nevada. It leverages the company’s network of Enterprise Rent-A-Car neighborhood locations. Randal Narike, executive vice-president of operations for Enterprise Holdings, said: “We’re starting out in just three states to make sure we have enough time to develop a deep understanding of the subscription process and consumer preferences.”

Enterprise launches vehicle subscription service

May 09, 2019

Car rental giant Enterprise Holdings, which manages the largest and most diverse privately-owned fleet in the world, has launched a new vehicle-subscription service. The Subscribe with Enterprise service will initially be available in three US states: Minnesota, Missouri and Nevada. It leverages the company’s network of Enterprise Rent-A-Car neighborhood locations. Randal Narike, executive vice-president of operations for Enterprise Holdings, said: “We’re starting out in just three states to make sure we have enough time to develop a deep understanding of the subscription process and consumer preferences.”

EMEA

Cambridge & Counties Bank fights for pole position in classic car finance market

May 03, 2019

Cambridge & Counties Bank (CCB) has reported strong demand for classic car finance after it entered the market last year. It loaned £5.3 million to fund classic car acquisitions during 2018, exceeding business forecasts. As part of its new venture, it became an official partner of the Federation of British Historic Vehicle Clubs (FBHVC), providing £10,000 in student bursaries to support the Federation’s Heritage Engineering apprenticeship scheme. CCB reported record results overall last year, with total assets rising to £1.03 billion, up 17% year-on-year, while pre-tax profit increased 14% to £27.9 million. Loans and advances to customers increased from £690 million to £769 million.

Americas

Ford launches loyalty programme for app users

May 09, 2019

Ford is launching a loyalty programme for users of its FordPass app to improve the customer experience. FordPass is a single mobile platform where owners can monitor their vehicles, find parking spaces or make service appointments. The new rewards programme, called FordPass Rewards, awards points to customers who purchase or lease a new Ford vehicle, which can be used to pay for maintenance, parts, service or discounts on a future model at participating Ford dealerships.

Asia Pacific

Hyundai and Kia invest $300m in India’s largest mobility service provider Ola

Mar 19, 2019

Hyundai Motor Group has announced a $300 million investment into Uber-rival Ola, as the car manufacturer expands into providing mobility solutions and related fleet services. The agreement will see Hyundai, Kia and Ola collaborate on developing fleet and mobility solutions by building India-specific electric vehicles and support services, as well as helping Ola attract new drivers to the platform. As part of the strategic collaboration, the companies will jointly develop services to operate and manage the Ola fleet, as Hyundai Motor Group expands its operations from automobile manufacturing and sales to mobility services and total fleet solutions.