CV manufacturing down 25% in July as decline continues

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UK commercial manufacturing output continued its long-running decline in July, with output down by 25% to 6,338 units, compared to 8,454 units in July 2013, according to the latest figures from the Society of Motor Manufacturers and Traders.

CV manufacturing July-13 July-14 % Change YTD-13 YTD-14 % Change
Total 8,454 6,338 -25.0% 57,118 43,798 -23.3%
Home 2,346 2,125 -9.4% 26,367 20,723 -21.4%
Export 6,108 4,213 -31.0% 30,751 23,075 -25.0%
% export 72.2% 66.5% 53.8% 52.7%

The falls reflect structural changes — a.k.a. downsizing and closures — in the UK CV manufacturing sector last year, which have not yet worked their way out of the comparative figures:

SMMT CV manufacturing July 2014

Graphs courtesy of SMMT (www.smmt.co.uk)

A comparison with June 2013 suggests that production has been fairly stable in recent months: 6,348 vehicles were produced in June, compared to 6,338 in July.

Sounding ever-so-slightly like a stuck record, SMMT chief executive Mike Hawes said:

“UK commercial vehicle production fell by a quarter over last July, continuing the trend seen over the last year.

With the effects of the 2013 restructuring still evident, as well as the spike in truck registrations towards the end of last year, this was to be expected. The coming months should provide more optimism, however, with European demand showing sustained improvement.”

The decline seems to have bottomed out, based on month-by-month figures, but the long-term decline in CV manufacturing output is pretty scary — down from around 225,000 per year before the financial crisis to less than 100,000, today.

MC Rental Isuzu ‘branded’ in historic City of London ceremony

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Isuzu being branded at Cart Making ceremony

The Isuzu Urban 7.5t rigid being branded at the City of London cart making ceremony.

One of the latest Euro VI Isuzu Urban 7.5t rigids was ‘branded’ at this year’s annual historic ‘Cart Marking’ ceremony in the City of London.

Cart Marking is a multi-vehicle parade and vehicle drive-past, in the presence of the Rt Hon Mayor of London, the Sheriff of London and other city officers.

Selected vehicles, representing the history of transport, are branded with a red-hot iron on a wooden plaque. Each plaque carries a unique vehicle number and the Carmen Arms. The ceremony acts as a reminder of centuries of service by transport organisations to the City of London.

According to Keith Child, marketing director at Isuzu Truck UK:

“The Cart Marking ceremony is a prestigious annual event within the City of London calendar and, once again, Isuzu Truck has played an active role in this event, always featuring a latest specification Isuzu that will operate within the London area.”

In the livery of long-time Isuzu customer MC Truck & Bus (which offers daily van rental), the Isuzu truck taking part in the Cart Marking ceremony was one of the first of the new Isuzu Urban N75.150 rigids recently launched by Isuzu as part of its new 2014 Euro VI product portfolio.

The Isuzu Urban 7.5t 4×2 rigid featured Isuzu’s latest Euro VI, four-cylinder turbocharged and intercooled 3.0 litre diesel engine, producing 150PS, matched to Isuzu’s popular Easyshift automated gearbox.  The vehicle was also fitted with a standard curtainsided body.

The Isuzu 7.5 tonne truck range for 2014, of which the Urban model is a key part, is renowned for reliability and durability as well as good payload and performance. The new Euro VI Isuzu Urban is ideal for payload critical, stop-start, local distribution operations. It offers market-leading payload capacity, good fuel economy, easy cross-cab access, reliability and durability. The trucks are popular with customers in small, niche businesses as well as large blue-chip, household-name fleets.

Sold #2: Practical Car and Van Rental changes hands

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Practical Car and Van Rental has been sold, according to a report on the Business Car website.

The website reported that Practical, which has 136 UK hire outlets and a total of 3,000 vehicles, has been purchased by a UK firm called Tudor Holdings, which also owns a Kent and Sussex-based firm called Kent Auto Panels, a car dealership group.

The deal is the second sales of a large independent vehicle hire group to be announced this week — on Wednesday, I reported on the sale of Burnt Tree Commercial Vehicle Rental to Enterprise, a deal that will create a combined fleet of more than 25,000 commercial vehicles.

In both cases, the amounts paid for the acquisitions have not been disclosed, as both deals were between two privately-held companies.

Volkswagen motors away with super yacht deal

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Sunseeker Volkswagen TransportersVolkswagen Commercial Vehicles has signed a deal with Poole-based super yacht manufacturer, Sunseeker International, to supply eight new vans. The contract includes a mixture of Volkswagen Transporter and Crafter models.

The new vehicles will be used to transport yacht parts and personnel, and will replace Sunseeker’s existing commercial vehicle fleet. The first vehicles were delivered in July.

All eight vehicles have been supplied on a five-year service and maintenance contract hire agreement with Volkswagen Group Leasing, with support from Sunseeker’s local Volkswagen Van Centre, Breeze, located in Poole.

Mark Garside, transport manager at Sunseeker, commented:

“Volkswagen Commercial Vehicles is renowned for its efficiency and reliability so the decision on which vehicles to choose was easy. However, selecting a partner to supply and maintain the vehicles while sticking to a budget was harder.  From the start I was aware of the benefits of going with a local Van Centre but the fact they provided a very competitive finance package with aftersales care sealed the deal.”

Van rental in Ashford, Surrey: PM Vehicle Hire

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PM Vehicle HireI’m very pleased to welcome our newest advertiser, PM Vehicle Hire of Ashford in Surrey, to vanrental.co.uk.

PM Vehicle Hire is a local company offering a full range of nearly-new vans, including:

  • Small vans (e.g. Citroen Berlingo)
  • Short wheelbase panel vans (e.g. Peugeot Boxer L1)
  • Medium wheelbase panel vans (e.g. Peugeot Boxer L2)
  • Long wheelbase panel vans (e.g. Peugeot Boxer L3H2)
  • 3.5t Luton vans with tail lifts

All vans include unlimited mileage and the firm is happy to arrange short or long-term hire deals, tailored to your requirements.

To find out more or arrange a hire, contact PM Vehicle Hire directly today:

If you’d like to advertise your hire company on vanrental.co.uk, check out the options on our Advertising page or contact us directly for more details.

Used van values hesitate in July

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Have used van values started to fall? The data are slightly ambiguous, but they are certainly not soaring ahead.

According to auctioneers BCA, the average used van sold for £5,498 in July. Although this was an increase of 1.8% on June, the rise was due to a change in the model mix, says BCA, not to an increase in like-for-like prices.

Indeed, BCA says that average fleet, lease and dealer part-exchange van values all fell during July, albeit by a small percentage, with only high-quality corporate stock supporting the overall average price.

BCA used van prices July 2014

BCA used van prices June 2012 – July 2014 (courtesy of BCA)

BCA’s General Manager – Commercial Vehicles, Duncan Ward, commented:

“As we said last month, we expect to see some pressure on average values over the summer months and July bore that out. The change in the model mix in favour of more expensive corporate stock actually resulted in the headline value rising, but that should not mask the fact that the used van market is notably quieter at this time of year.”

We’ll need to see August and September price data before deciding whether the market really has reached a turning point, but further big gains are beginning to seem less likely, in my view.

Enterprise buys Burnt Tree Vehicle Rental

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Enterprise Rent-A-Car today announced the acquisition of Burnt Tree, one of the UK’s largest providers of commercial rental vehicles to companies and public sector organisations. The purchase increases the breadth of vehicles and services that Enterprise can provide to its customers under its flexible commercial vehicle hire division, Flex-E-Rent.

The agreement includes Burnt Tree’s diverse commercial fleet of 17,000 vehicles, including commercial vans, HGVs, refrigerated trucks and accessible minibuses, its proprietary fleet management technologies, as well as its network of 20 branches and a team of 400 employees.

In the immediate short-term, the Enterprise Flex-E-Rent and Burnt Tree businesses will continue to operate as two separate brands, with a view to creating a combined entity that will be headquartered in Shrewsbury. The acquisition, for an undisclosed sum, significantly increases Enterprise’s value proposition in the flexible commercial vehicle rental sector and will take its fleet of commercial vans and trucks to more than 25,000.

Enterprise UK and Ireland managing director, Mike Nigro, said:

“We are committed to the growth of our flexible commercial vehicle business, which has grown organically in recent years.

“We could immediately see the potential of Burnt Tree to give our customers access to skills and services that are particularly suited to the needs of commercial vehicle customers. Burnt Tree also has the same culture of delivering outstanding customer service as Enterprise and shares a rich heritage of conducting business in the UK.

“Burnt Tree has some unique expertise that it can bring to Enterprise and it will also benefit from becoming part of a truly global organisation. The combined business post-acquisition will be far stronger with greater economies of scale and better technology, while the transfer of knowledge will allow us to better serve our customers.”

The new business will be led by Danny Glynn, Director, Enterprise Flex-E-Rent. Burnt Tree chief executive, Richard Metcalfe, will remain in an advisory capacity to help steer the direction of the combined business.

Richard Metcalfe said:

“Last year we stated our ambition to become the leading and largest business in our industry. In time, this agreement will allow Burnt Tree to achieve its full potential to become the market leader. It will become part of the world’s largest vehicle rental company, which, like Burnt Tree, is privately owned.

“I know that there is both the vision and resources to grow the business over the long-term, which means there will be opportunities for people here. I would like to thank everyone sincerely at Burnt Tree for all their hard work and for making the business such a success. This agreement marks the next phase of growth for the business.”

Shrewsbury-headquartered Burnt Tree has been operating for more than 30 years, while Enterprise is celebrating its 20th anniversary in the UK this year. As well as its Flex-E-Rent division, Enterprise also operates a fleet of more than 60,000 vehicles from the UK’s largest network of car hire branches.

Europcar scores official car and van rental role with Arsenal FC

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Europcar is official Arsenal car and van hire partnerEuropcar, has today announced a new brand partnership with Arsenal Football Club, which will see the hire company become Arsenal’s official car and van rental partner.

Europcar will promote its partnership with Arsenal in a large number of territories around the world including South Africa, USA, selected countries in Asia and Latin America, and throughout Europe.

The company’s marketing rights include significant branding presence at Emirates Stadium, and throughout Arsenal FC’s online and social media channels.

As the world-renowned football club embarks on a new season as reigning FA Cup champions and Community Shield winners, the three year deal will see Europcar branding at all Barclays Premier League and domestic cup matches played at Emirates Stadium.  In particular, both organisations aim to capitalise on the synergies between their brand values, focusing on innovation, quality and social conscience.

The significant international reach the Club can provide for the global rental provider is also a key factor in the partnership.  As well as the 3 million people that attend matches and events at Emirates Stadium each year, Arsenal has 27.4 million fans on Facebook and 4.2 million followers on twitter.

“This is a tremendously exciting partnership for Europcar”, explained Ken McCall, Managing Director, Europcar UK Group.  “It gives us fantastic branding opportunities in the UK, and also reaching millions of football fans who follow the Premier League throughout the world.  As well as promoting the Europcar global brand message, ‘Moving your way’, the partnership also gives us access to the Arsenal players and imagery for our own promotional activity.

“As the official car and van rental partner of Arsenal FC, we can help fans travelling to away games with convenient and cost-effective mobility solutions, as well as bring the benefits of our comprehensive range of services tailored to the needs of business and leisure users. We are confident that this relationship will enable us to significantly increase reservations as well as raise the bar on our engagement with both consumer and business customers.”

Speaking about the partnership ahead of the new season Arsenal Sales and Marketing Director, Vinai Venkatesham said:

“We are delighted to be partnering with Europcar for the next three years.  We are already working closely together to develop engaging marketing campaigns targeted at football fans in many territories all around the world.”

Ford expands AA role with 343 new Transit Customs

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AA Ford Transit CustomFord is supplying 343 Ford Transit Custom vans to the AA to join its fleet of patrol vehicles. They will raise Ford’s share of the 2,100-vehicle AA patrol fleet to more than 50 per cent.

Ford secured the order from the AA following an exhaustive analysis of whole-life costs. Sarah Dopson, AA head of fleet, said:

“We looked at all the usual factors – acquisition price, depreciation, servicing and maintenance costs, running costs including fuel economy – and the Transit Custom came out top.

Deliveries of the new vehicles will be complete by November, in time for our busiest period for call-outs.”

Prior to delivery, the Transit Custom vans – a mix of 310 and 330 L1 models – undergo conversion at a vehicle preparation specialist, which includes fitment of the AA’s new contract recovery trailer to allow the partial lift and recovery of broken-down vehicles, a dual battery system, specialist racking systems and of course the organisation’s distinctive yellow livery.

Ian Watson, Ford’s direct sales manager, said:

“Ford is already supplying around 3,000 cars a year to the AA Driving School, and we are very pleased that the organisation has recognised the Ford Transit Custom’s many attributes, including the important financial ones. They look eye-catching in AA livery and will prove a reassuring roadside sight for AA members.”

The purchase is another high-profile endorsement of Ford’s incredibly successful Transit Custom van, which is part of its all-new van range.

Of course, Volkswagen Transporter drivers benefiting from Volkswagen Commercial Vehicles’ roadside assistance service — standard with new VW vans — will still be rescued by an AA Volkswagen Transporter: avoiding the bad publicity VW would incur by allowing its new vans to be rescued by Ford Transits is worth whatever premium VW might be paying for its dedicated, liveried roadside assistance service…

Vauxhall updates van service offering with 90% UK coverage

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Vauxhall Vivaro

The new Vauxhall Vivaro

Vauxhall’s refreshed Premier Van Centre is set to shake-up the fleet aftersales sector with over 90 per cent of all UK businesses covered within a 30-minute drive time of one of the company’s 100 Premier sites.

Vauxhall van fleet customers can expect diagnostics without appointment, lead times no longer than three days and a dedicated Premier Van Helpline.

Vauxhall will also collect and deliver vehicles within a ten-mile radius (five miles within the M25) and offer a courtesy vehicle free of charge.

All Premier Van Centre sites will carry out Class 7 MOTs and have a 5-tonne lift on-site.

Vauxhall’s Premier Service Centres have to meet a strict selection criteria. Only sites that can provide sales and service support and meet strict service level requirements can qualify for Premier Van Centre status. Premier Van Centres are also listed on Epyx 1link for ease of identification and online service booking requests.

Repairs are carried out at fixed labour rates with job sheets completed on the day the work is completed and invoiced within five working days, so no hidden or unexpected surprises. Customers can also take advantage of a while-you-wait option when a repair is expected to be completed on the same day.

Once work is complete a 25-point safety check is carried out including all safety enhancements and software updates. Vauxhall even throws in a wash and vac with every annual service and free fitting of wiper blades.

Motorbodies Luton was the first Vauxhall retailer to be granted Premier Van Centre status.

“This is a fantastic opportunity to demonstrate our commitment to looking after the needs of van customers,” said Rachel Parker, Operations Director.

“We always strive to deliver the very best in customer service and aftersales support.”

The announcement of Premier Van Centres follows the launch of the all-new British-built Vivaro, which further enhances Vauxhall’s award-winning van range.

“We are delighted to announce full details of our refreshed Premier Van Centres,” said Richard Collier, Vauxhall’s National Commercial Vehicle and B2B Sales Manager.

“The enhanced programme brings industry-leading customer experience to Vauxhall Commercial Vehicle fleet customers with over 90 per cent UK coverage. Our nationwide network of van experts will deliver the highest standards of skills and expertise whilst also helping fleets save time and money.”

Vauxhall isn’t the only company attempting to up its game in the van fleet service sector — Ford launched Transit24, a similar service, shortly after the launch of its Vivaro-sized Transit Custom van, last year.