6:50 am, October 2, 2024
Manufacturing confidence falls amid ‘gloomy’ October Budget messaging
Activity in the UK’s manufacturing sector grew at a slower pace last month amid a drop in business optimism, according to new data.
The closely watched S&P Global UK manufacturing PMI survey recorded a reading of 51.5 for September, down from 52.5 in the previous month.
The lower reading, which was partly attributed to firms taking a wait-and-see approach ahead of the October Budget, was in line with analysts’ expectations.
Barclays to pay £3m penalty after breaching US swap reporting rules
Barclays is to pay a $4m (£3m) penalty after being accused of breaching US trading rules.
The Commodity Futures Trading Commission (CFTC) said the banking giant violated rules related to how it reported swap transactions.
Swap transactions are financial transactions where two parties exchange cash flows or liabilities from different financial instruments, often including those linked to loans or bonds.
Mulberry rejects Frasers Group’s £83m takeover tilt
Luxury handbag maker Mulberry has rejected a takeover approach from Mike Ashley’s Frasers Group valuing the firm at £83m.
The struggling British fashion brand said it believes the possible offer from Frasers, which was revealed on Monday, ‘does not recognise the company’s substantial future potential value’.
Mulberry said it had discussed the approach with its majority shareholder, Singapore-based Challice, which is controlled by billionaire Ong Beng Seng and his wife Christina.
New Lexus RZ300e to start from £49,995
The new Lexus RZ300e is now on sale priced from £49,995.
Arriving as a front-wheel-drive alternative to the all-wheel-drive RZ450e, the new RZ300e brings a range of up to 297 miles from a charge and is available in one of four specifications. It betters the range offered by the all-wheel-drive model, which Lexus says can travel for up to 273 miles between charges.
Standard features on the entry-level Urban model include 18-inch alloy wheels, LED headlights and automatic high beam while inside there’s a 14-inch touchscreen with smartphone integration systems such as Apple CarPlay and Android Auto.
Tuesday on Car Dealer
Sytner boss Darren Edwards to retire at the end of the year after illustrious 40-year career
Darren Edwards, CEO of Sytner Group, will retire on January 1, 2025, after over 40 years in the automotive industry. He has been instrumental in Sytner’s growth, leading the company to second in the Car Dealer Top 100. John Cragg will take over as CEO, bringing extensive experience from his 18-year tenure at Sytner. Edwards expressed gratitude for his career and confidence in Cragg’s leadership.
Lookers owner splashes out $1.2bn to buy Danish car import business KW Bruun
Global Auto Holdings, which acquired Lookers in 2023, has further expanded into Europe by purchasing KW Bruun Import and its workshop chain, KW Bruun NxT, for $1.2bn. KW Bruun, a 110-year-old Danish firm, holds import and distribution rights for Stellantis brands and Mitsubishi in Denmark. This move aligns with Global Auto’s strategy to grow in the European market. The acquisition, awaiting regulatory approval, was finalised shortly after the passing of KW Bruun’s chairman, Anders Karl Brunn.
Car auction site Motorway clocks up £30.8m loss for 2023 in year of ‘strong growth’
Car auction platform Motorway posted losses of £30.8m in 2023, a 19% reduction from £38.2m in 2022, as revenues surged by 48% to £60.9m. Despite the losses, CEO Tom Leathes highlighted the company’s significant growth and steps toward profitability. Motorway facilitated £2.2bn worth of car sales in 2023, up from £1.7bn the previous year. The company credits innovations like its payment system, Motorway Pay, and logistics service, Motorway Move, for enhancing its customer experience and driving its market presence.
Ombudsman warns drivers to declare modifications or risk huge bills
The Financial Ombudsman Service (FOS) has issued a warning to drivers about the risks of car modifications potentially invalidating their insurance. Modifications, ranging from aesthetic changes like alloy wheels and body kits to performance upgrades such as remapping or exhaust changes, must be disclosed to insurers. Failing to do so can result in insurance claims being rejected, leaving car owners with large bills in the event of an accident. The FOS advises buyers to check for any previous modifications when purchasing a vehicle and report them to insurers to avoid issues.
Stellantis and Aston Martin shares sink as they become latest car makers to issue profit warnings
Shares of Stellantis and Aston Martin plummeted after both companies issued profit warnings due to growing competition from lower-cost Chinese rivals. Aston Martin’s stock fell by 24% after announcing plans to cut car production for 2024, citing supplier disruptions and weak demand in China. Stellantis shares dropped 15% as it lowered its operating profit margin outlook from 10% to 5.5-7%, and predicted negative free cash flow for the year, down from an earlier positive forecast.
Group 1 Automotive acquires Soper BMW Lincoln and confirms Mark Raban as UK CEO
Group 1 Automotive has completed its acquisition of Soper BMW and Mini in Lincoln, a move expected to add $125m (£94m) to its UK revenues. This transaction coincides with the official appointment of Mark Raban as the new UK CEO for Group 1, following his leadership departure from Lookers. Raban’s focus will be on enhancing customer experience and strengthening partnerships with manufacturers, leveraging the company’s expanded portfolio. His leadership is seen as key to driving the company’s growth in the UK after its merger with Inchcape.
‘The Ties They Are A-Changing’: Vertu boss announces switch to traditional staff uniform
Vertu Motor Group has announced that its sales staff will no longer be required to wear ties as part of their uniform, starting from October 1. This marks a shift from the group’s tradition, where its distinct striped ties were a key part of the dealers’ uniforms across its franchises. CEO Robert Forrester confirmed the change, posting a tie-free selfie on his first day at work without one. Vertu-branded scarves, previously an option for female staff, are also being moved on, though the rest of the uniform remains the same. The decision reflects the company’s move to modernise its dress code.
The worst places to buy a used car in the UK are revealed in new survey
According to a new survey by MoneyBarn Vehicle Finance, Northampton has been identified as the worst place in the UK to buy a used car. The study analyzed reviews and average car prices across the 30 most populated towns and cities. Northampton scored the lowest overall, with a poor score of 1.84 out of 10. The town had 35% of reviews rated as ‘terrible,’ and an average used car price of £24,209, indicating both high prices and low customer satisfaction. On the contrary, Kingston upon Hull topped the list as the best place to buy a used car, scoring 9.77 out of 10 with 85% of reviews rated ‘excellent’ and an average price of £16,425.
Skoda expands electric car line-up with new Elroq
Skoda has introduced a new electric vehicle to join its popular Enyaq model in the firm’s range of EVs – the Elroq.
Sitting below the Enyaq in terms of size, the new Elroq uses the same MEB platform but has smaller dimensions, sitting around 160mm shorter overall. Despite this, Skoda says that the interior of the Elroq will still offer plenty of space, with a 470-litre boot and a total of 48 litres of storage space dotted throughout the cabin.
Priced from £31,500, the Elroq will be available in variety of battery and motor specifications, with the longest-range versions able to deliver up to 350 miles between trips to the plug, according to Skoda. It can charge at speeds of up to 135kW, too, enabling 10 to 80% in 28 minutes.
Labour accused of ‘giving up the fight’ for steel jobs in Port Talbot
The Welsh and UK governments have been accused of giving up the fight for jobs at Tata Steel, following the closure of the last blast furnace in Port Talbot.
Traditional steel production came to an end at the Welsh steelworks on Monday as blast furnace number four began winding down, with thousands of jobs to be lost.
Rhun ap Iorwerth, the leader of Plaid Cymru, has branded the closure “devastating,” arguing various governments had failed to do enough to protect workers.
Iran has launched missile strike on Israel, says Israeli military
Iran says it fired dozens of missiles into Israel on Tuesday as the months-long fighting between Israel and Iran’s proxies in the region: Hezbollah and Hamas; escalated, threatening a wider regional conflict.
Israel ordered residents to remain close to bomb shelters as air raid sirens sounded across the country.
A series of window-shaking explosions were heard in Tel Aviv and near Jerusalem, though it was not immediately clear whether the sounds were from missiles landing or being intercepted by Israeli defences, or both.
The markets
The FTSE 100 rose on Tuesday, despite other global stock markets falling on the news that Israel has begun a ground offensive in southern Lebanon.
London’s blue-chip index rose 39.7 points, or 0.48%, to end the day at 8276.65. The FTSE was lifted by strong days of trading for defence giant BAE Systems, BP and Shell, with the energy groups helped by a rise in oil prices amid the Israeli operation.
At the end of the day in Europe, Frankfurt’s Dax index had fallen 0.65%, while the Cac 40 in Paris closed down 0.80%.
Weather outlook…
The country is the today expected to experience cool, autumnal conditions.
Temperatures will likely range from around 6°C in Scotland to 15°C in southern England. Rain is expected across much of the country, particularly in the western and southern regions, with intermittent sunshine in some eastern areas.
Winds will remain moderate, adding to the cooler feel of the day.
