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UK CV manufacturing down by 22.1% in February as slump continues

The UK’s commercial vehicle manufacturing industry continued its dizzying descent in February, with volumes down by 22.1% compared to the same period last year, and by a stomach-churning 36% since January 2012, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT):

CV manufacturing Feb-13 Feb-14 % Change YTD-13 YTD-14 % Change
Total 8,005 6,235 -22.1% 15,827 12,916 -18.4%
Home 4,165 2,963 -28.9% 8,361 6,408 -23.4%
Export 3,840 3,272 -14.8% 7,466 6,508 -12.8%
% export 48.0% 52.5% 47.2% 50.4%

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

CV manufacturing output has now fallen for eight consecutive months. SMMT chief executive Mike Hawes tried to put a positive spin on the figures by continuing to blame them on subdued demand and industry restructuring, but the numbers increasingly don’t add up — UK CV manufacturing output is down by 18.4% so far this year, but CV registrations are up by 9.9% so far this year.

For whatever reason, UK and European buyers aren’t buying British-made CVs as much as they used to, either because vehicles that used to be made in the UK aren’t made here anymore (like the Ford Transit) or because the vehicles that are made here don’t satisfy buyers’ requirements as well as they used to. In either case, the news isn’t good, as these two graphs illustrate:

SMMT CV output February 2014

CV output rolling year and year-to-date (l-r) (courtesy of SMMT)

One possible glimmer of hope is the new Vauxhall Vivaro, which will be built at the firm’s plant in Luton and could trigger an uplift in sales as customers focus on what will be, albeit briefly, the newest van model on the market.

Bigger, better & 47mpg? New Renault Trafic & Vauxhall Vivaro break cover

New 2014 Vauxhall Vivaro rearVauxhall and Renault have released the first pictures of their latest collaboration, the new Trafic and Vivaro vans.

Although an all-new model, the external styling is a clear evolution of the outgoing models, with the biggest changes taking place around the front of the van, where the lights, air intake, bonnet and windscreen have all been altered.

Both vans will be powered by a Renault-designed 1.6-litre diesel engine, with two variants available — a single, variable geometry turbo and a twin-turbo model, which the manufacturers’ early tests suggest could return 47mpg. Both engines offer improved low-end torque and better pick-up, giving a sharper, more responsive feel, according to Renault and Vauxhall.

Two lengths, two heights

The outgoing model was always available in two wheelbases and with a high roof option, but these were never very popular, despite their practical appeal. The new Trafic/Vivaro has grown, as new models are apt to do, and will be come in two lengths — 4,998 and 5,398 mm.

New 2014 Renault Trafic

The new 2014 Renault Trafic

There will be a high roof model, as well as passenger-carrying double cab and Combi variants, and, a little later, as a platform cab.

New 2014 Vauxhall Vivaro front

The new 2014 Vauxhall Vivaro

The vans will be built in a several places, as far as I can tell from the initial press releases. Vauxhall says that all of the standard roof models will be built at its Luton plant, which also has a conversion centre for ex-factory conversions, such as platform cabs.

Meanwhile, Renault says that it has invested more than €230m in moving production to France, suggesting that Renault-badged models and perhaps some Vauxhall-badged variants will be coming from the firm’s Sandouville factory.

More details, including interior pictures, to follow, when they become available.

 

Northgate trading in line with expectations; slow but steady growth

Northgate Vehicle Hire logoB2B van hire specialist Northgate issued a trading update for the last three months this morning, reporting slow but steady growth in its UK van rental division. The company had 47,000 vehicles on hire as of 12 March, a 1,100 increase since the end of October.

Northgate said that it experienced the usual seasonal dip during November and December, with vehicles on hire dropping by 2,000 during this period, but that the fall had been smaller than during the same period in 2012, when vehicles on hire dropped by 2,900.

The firm’s fleet utilisation averaged 87% over the last three months, compared to 88% the previous year, but its fleet size has continued to grow, rising to 53,200 from 52,800 at the end of October — an increase of less than 1%, following the 5.8% increase seen during the previous quarter. Taken together, these figures suggest to me that Northgate needs a strong spring/summer/autumn — or its fleet expansion could start to look premature.

Financial update: Stock market followers will note that UK van rental specialist Northgate plc (LON:NTG) took something of a bath following its latest update today. The firm’s share price was down by around 6.5% in late trading, but this has to be seen in the context of its 122% gain over the last two years — a pause for breath was definitely overdue, given the firm’s pedestrian growth prospects.

Northgate says that it is trading in line with expectations, which suggest earnings per share of 33p for the year to 30 April 2014, leaving the firm’s shares on a forecast P/E of around 16, with a prospective yield of 1.6% — definitely not cheap, when its 98% gearing is taken into account.

Age is no barrier to used van demand, says Manheim

Manheim logoThe recent upturn in new van registrations may be a welcome relief for UK van dealers, but many van operators are continuing to run vans to much higher ages and mileages than previously seen, according to vehicle auctioneers Manheim — echoing the long-running trend reported by their competitors, BCA.

Nearly half of all used vans hitting the market in February were over seven years old, according to the firm — 36% of car-derived vans, 46% of small panel vans and 45% of large panel vans (>3t). This shortage is attributed to two, related, factors — the dramatic fall in new van registrations since 2008/9, and the causal fact that many businesses have been delaying fleet renewal as long as possible in the light of tightened circumstances and questionable availability of credit — two facts which have helped support and buoy business for long-term and daily van rental companies during the same period.

Matthew Davock, head of light commercial vehicles at Manheim, says he believes the tide is turning:

“These older vans are, without doubt, the tail end of extensions and deferred replacement programmes resulting from the economic downturn. Anything sub four years in auction today is seeing significant interest, from both online and physical buyers. Fewer than three in 10 vans sold in February fell into this age bracket.”

One side effect of this has been to support the value of used vans — in an automotive market led by the UK’s obssession for new cars, constrained circumstances have forced van buyers to appreciate the value offered by older models, according to Mr Davock:

“This is not bad news for the market. Older and higher mileage vans will always find homes as they are at an attractive price point and represent excellent value. Mileage is now seemingly less of a mental barrier in retail buyers’ minds; this is likely against a backdrop of modern reliability and a comprehensive maintenance history.”

Small vans in particular have benefited from this trend — Manheim’s price data shows that the average hammer price for small vans has risen by 22% over the last year, from £3,957 a year ago to £4,846 in February 2014.

Looking ahead, based on this year’s remarkably strong start, Manheim believes that the market for used vans will remain stable for the next few months. Overall they believe the wholesale market has hit a price ceiling; while there is a chronic shortage of quality used vans at auction, conversion rates and bidding activity will remain high.

Ford rivals feel chill as blue oval bags double win in Arctic Van Test

The new Ford Transit was the class winner in this year's Arctic Van Test

The new Ford Transit was the class winner in this year’s Arctic Van Test.

Ford’s new Transit and Transit Connect vans have earned an unprecedented double win in this year’s Arctic Van Test, which pits production models of all popular vans against each other in the Arctic conditions of winter in northern Finland.

The all-new Ford Transit and the all-new Ford Transit Connect finished first in their respective classes after competing in the punishing five-day ordeal that subjects vehicles and drivers to extreme challenges in ice, cold and snow, in the frozen north of Finland – where temperatures can drop as low as -50 C.

Expert drivers from six European commercial vehicle magazines drove all the vans taking part in the Arctic Van Test and rated the two Transits winners to deliver Ford’s first double victory in the event’s 23-year history. From slaloming across a frozen airfield, to tackling a torturous 700 kilometre route of icy, rutted roads, the Ford Transit vans won for their overall performance across categories that included fuel efficiency, load carrying, and handling.

The challenge also tests engine starting, and heating and demister operation, after vehicles have been left outside overnight in sub-freezing conditions. To see the vans in action, take a look at this video:

The all-new Ford Transit was rated top or joint-top in nine out of 13 categories against rival vehicles from Mercedes-Benz, Vauxhall and Volkswagen. The smaller all-new Ford Transit Connect was ranked top or joint-top in seven categories, and particularly impressed for its handling and stability in icy conditions, against rivals from Citroen, Renault and Volkswagen.

“The Ford vans were clear winners in very slippery conditions – a great advantage when frozen roads can be found anywhere, and not just found on the test track,” said Heikki Laurell of Auto Tekniikka ja Kuljetus magazine in Finland, which organises the annual event. “Our tests push vans to the limit, and can be quite a shock if you are not used to a Scandinavian winter.”

The all-new Ford Transit is on sale now with over 7,500 orders already taken in the UK, suggesting that it will beat the opening-year total of more than 10,000 logged by its smaller brother, the Transit Custom, in 2013.

Used van prices hit new record in February

BCA commercial vehicle auction saleAverage used van prices hit a new record of £5,345 in February, leaving them 11% higher than one year ago, according to the latest sales figures from vehicle auctioneers BCA.

Despite the continued increase in average age and mileage, demand for used vans remains greater than supply, pushing up prices massively ahead of inflation, as these figures show:

All vans Avg Age (mnths) Avg Mileage Avg Value Sale vs CAP
Feb 2013 58.55 78,770 £4,789 103.05%
Feb 2014 60.73 81,346 £5,345 102.57%

Data courtesy of BCA (www.british-car-auctions.co.uk)

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

“As BCA has been reporting for many months, demand remains high for used light commercials, reflecting the improving economic messages from a variety of sources. Many small and medium-sized enterprises (SMEs) in the UK are now upbeat about their growth prospects this year and this sector is a big buyer of used light commercials. In fact, demand remains strong across the board, from car sized vans through to large panel vans and there is plenty of competition for any van presented in ready-to-retail condition.”

“This time of the year also typically sees an uplift in the building and construction industries.  As a lot of building activity was curtailed due to the wettest winter on record, we expect to see even more interest in tippers and drop sides as the weather improves in the weeks ahead.”

Recent strong growth in new van registrations should eventually feed through to the used market, but it could be 12 months or more until this really becomes apparent, suggesting that secondary market demand will remain very strong through the spring and summer of 2014.

Thrifty Car & Van Rental opens Bolton branch

Thrifty Car & Van Rental logoThrifty Car and Van Rental has opened a new branch in Bolton, offering a full selection of cars and vans for hire, including automatic and manual models.

Thrifty offers a comprehensive range of vans, including economy (e.g. MINI Clubvan), compact (e.g. Ford Transit Connect), short and long wheelbase panel vans (e.g. Ford Transit), extra-long wheelbase vans (e.g. Mercedes Sprinter XLWB) and luton box vans with tail lifts.

The new branch is situated on Raikes Lane which is just off Set Peter’s Way (A666), on the south side of Bolton town centre.

The full address is:

Unit 1B,
Raikes Lane,
Bolton,
BL13 1RP

You can find full details of the new branch, including sat nav coordinates and a map, on our Bolton Thrifty branch page.

British firm Cartwright unveils new ambulance design

Iveco - Cartwright ambulance demonstrator

The new Iveco – Cartwright ambulance

No sooner do I write an article about German supremacy in the UK ambulance market, than a competing British firm announces that it has launched a new ambulance body that is designed to be mounted on an Italian van chassis!

Iveco and Cartwright have teamed up to launch a new accident & emergency (A&E) ambulance, which is being made available for trials with NHS Ambulance Trusts and private ambulance operators across the UK and Ireland.

The body has been designed and developed within Cartwright’s 38-acre manufacturing site in Altrincham, Cheshire, using materials proven in aerospace and motorsport environments, combined with cutting edge metallurgy and the company’s 62 years of experience in vehicle body design. Cartwright says the body is unique in the marketplace for being easily transferable onto a second chassis, of any make, during a projected 15 year minimum service life.

The launch vehicle is based on an Iveco Daily 50C17 chassis, which is popular with blue light operators throughout Europe. Key features include its truck-style chassis frame which guarantees structural rigidity, fatigue resistance and long-term durability, combined with an impressive turning circle and a chassis offering maximum bodybuilding flexibility.

The bodywork comprises a unique combination of high strength fibre-reinforced plastic (FRP) laminates, high density structural foam core, special plastics manufactured by VEKA and high strength aluminium extrusions. The FRP laminate offers 90 per cent of the tensile strength of carbon fibre but at a cost acceptable within price driven arenas. Body joints are fully bonded; avoiding the localised stress raisers of welded, bolted or rivet joints by spreading the joint surface over the full contact area.

Key to the body’s modular nature is Cartwright’s decision to mount the lightweight body structure onto a reinforced substructure to provide a strong, rigid mounting point for battery lockers, step wells, steps and tail-lift. Unlike existing ambulance bodies in the UK, this allows fleets the option to remount the body onto a different chassis and wheelbase in the future – ensuring the base vehicle can be replaced after approximately seven or eight years in service, in line with current industry standards.

Wes Linton, Blue Light Development Engineer at Cartwright Group, says:

“Ambulance electrical systems are worked extremely hard with constant parasitic communications loads combined with regular high current requirements for the tail-lift. For this new body, we have developed what we are confident is the most advanced electrical system of its type in the blue-light sector.”

This sees a DC-DC step-up charger providing 100A continuous charge current capacity to feed the split-charge system. The split-charge system is monitored and controlled using the actual battery bank state-of-charge, operating to charge the individual banks at predefined precedence and within adjustable thresholds to ensure the battery banks are kept at their maximum charge.

The electrical control system has been designed from the outset to utilise CAN signals where possible and integrate directly with telematics systems. Utilising twin CAN networks the Intellitec iPLC based control system has direct control over all aspects of base vehicle interfaces, battery management and charge control, systems control and event logging.

The demonstrator model is powered by a 3.0 litre FPT Industrial diesel engine which is capable of producing up to 170 hp between 3,000 and 3,500 rev/min, combined with a maximum output of 400 Nm of torque between 1,250 and 2,600 rev/min. This ensures sufficient power to meet the rapid response times demanded in the blue light sector.

UK van market gains 28% in February

Van registrations rose by 28.2% in February, compared to February 2013, according to the latest figures from the SMMT.

The gains in the light commercial vehicle sector build on January’s gains and mean that total commercial vehicle registrations rose by 17.5% last month, despite a 27.3% fall in truck registrations, as the heavy goods market continues to sag after last year’s pre-Euro VI sales boost.

UK commercial vehicle registrations Jan 2010 - Feb 2014

UK commercial vehicle registrations Jan 2010 – Feb 2014 (courtesy of SMMT)

The growth in van registrations means that UK van sales have risen by 18.5% so far this year, compared to the same period in 2013.

UK van and truck registrations: 2014 and % change on 2013

February % change Year-to-date % change Rolling year % change
Vans 11,731 28.2% 29,853 18.5% 275,728 13.8%
Trucks 1,589 -27.3% 3,406 -32.8% 54,555 22.4%
Total 13,320 17.5% 33,259 9.9% 330,283 15.1%

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

Gains in the van market were concentrated in the 2.0t – 2.5t (up 111%) and 2.5t – 3.5t (up 23.8%) categories, as these figures show:

Month Feb-14 Feb-13 % change
Pickups 943 1,047 -9.9%
4x4s 170 131 29.8%
Vans <= 2.0t 1,499 1,494 0.3%
Vans > 2.0 – 2.5t 2,664 1,262 111.1%
Vans > 2.5 – 3.5t 6,455 5,215 23.8%
All vans to 3.5t 11,731 9,149 28.2%

Data courtesy of SMMT

 These gains are encouraging, as medium and large vans are the workhorses of the economy — businesses in all sectors will experience a rise in demand for such vehicles as the economy picks up. 

Mike Hawes, chief executive of the SMMT, says that he expects more of the same as the year continues:

“Growing van registrations supported the February vehicle market as middle and heavy-weight vans enjoyed healthy rises, reflecting improving economic activity,” said Mike Hawes SMMT Chief Executive. “Registrations of trucks over six tonnes continued to decline as the market adjusts to new Euro-6 legislation. We anticipate this rebalancing act to be a factor for some months yet, while van volumes should remain on an upward trend.”