Motor industry says it is struggling to find staff

Businesses which supply parts to the car industry, have said that despite the recovery of the sector, not enough people are interested in hi-tech careers.

Zircotec in Abingdon produces specialised heat resistant coatings for engine parts used by Formula 1 but it said it was finding it difficult to recruit staff.

Motorsport firm Prodrive in Banbury has similar problems getting the highly skilled engineers it needs.

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source: BBC

BMW to invest £500m in UK factories

BMW has announced a plan to invest £500m in UK car production over the next three years.

The money will help fund the production of the next generation Mini in the UK, safeguarding more than 5,000 jobs.

BMW's investment plan is the second major boost to the UK's motor manufacturing industry this week.

Its announcement came the day after Nissan said it would invest £192m and safeguard 6,000 jobs by building its next generation Qashqai here.

BMW's main facilities are its vehicle assembly plant in Oxford, the pressings plant in Swindon and the company's engine plant at Hams Hall near Birmingham.

The motor industry produces the country's most valuable manufactured exports, with £27bn worth of vehicles and parts going overseas in 2010.

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source: BBC

Ford sees best profit in 13 years on green car sales

Ford has unveiled its strongest first quarter profits for 13 years, helped by increasing demand for more fuel-efficient cars.

Profits rose to $2.55bn (£1.54bn; 1.75bn euros) in the first three months of 2011, compared with $2.09bn at the same period the year before.

"Our team delivered a great quarter, with solid growth in all regions," said Ford president Alan Mulally. Ford said the 2011 outlook was good, despite higher commodity costs. Revenue for the first quarter was $33.1bn, up from $28.1bn a year earlier.

The firm said it had seen a strong performance in its home North American market, as well as "solid improvement" in Europe. US sales were up 16%, while market share in the Asia Pacific and Africa regions also increased, the carmaker said.

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source: BBC

Botched roadworks cost taxpayers £70m, says LGA

Botched roadworks are costing taxpayers in England and Wales £70m a year, the Local Government Association says.

It says councils are being left with the bill after contractors for utility companies fail to properly repair road surfaces they have dug up.

Workers dug two million holes last year and about 360,000 jobs were not properly completed, often leaving roads in a worse state, the LGA says. The utility industry said controls over repairs were being tightened.

This was in response to an LGA suggestion that utility companies should pay a bond before starting any work, which could then be used to cover the cost of any subsequent repairs or delays. The utility industry said any extra regulations would increase the cost of carrying out the work.

The LGA, which represents 419 local authorities in England and Wales, also wants councils to be given further powers to ensure roadworks are timed to cause minimum disruption to motorists.

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source: BBC

Saving Lives, Saving Money

Six thousand lives could be saved on Britain's roads over the next ten years if just a fraction of the money currently spent on road maintenance was provided for infrastructure improvements.

Britain loses up to £30 billion (2.3% GDP) annually in the cost of road crashes, most of which falls on busy, targetable motorways and main roads according toSaving Lives, Saving Money: the costs and benefits of achieving safe roads, a report for the RAC Foundation by the Road Safety Foundation.

The report shows how, within existing budgets, 1-star and 2-star roads can be eliminated in the next decade, with benefits worth £25-£35 billion. Achieving the savings will require that road authority leaders are offered guidance to focus on the full costs and benefits of saving the most lives for the money available.

According to Saving Lives, Saving Money, the total cost of crashes is well estimated by the Department for Transport but the way costs fall on families, business, carers, NHS, emergency services and the insurance industry is poorly understood.

The report also calls for:

• The government's upcoming Strategic Framework for Road Safety to make the Highways Agency - Britain's single largest crash cost centre - the model of best practice from which UK authorities can learn;
• New good practice guidance for authority leaders and professionals on generating and evaluating safety schemes so 1- and 2-star roads are eliminated and dual carriageways and motorways are brought up to high safety standards
• Parliament and the Treasury to examine the value for money that can be provided by programmes to reduce death and injury and investigate how institutional barriers to rational investment and priority setting can be overcome;
• Technical improvements to the evaluation of crash costs and recording of serious crashes by police and hospitals, with more focus on long-term care and the true financial costs of road crashes to healthcare and emergency services;
• The insurance industry to study the initiatives in other countries where the cost of damage and injury claims has been driven down successfully through improved safety.

For the full report and to visit the Road Safety Foundation website click here...

source: The Road Safety Foundation

'No-win, no-fee' changes announced by Ken Clarke

Changes to "no win, no fee" cases in England and Wales have been announced by Justice Secretary Ken Clarke.

He told the Commons that lawyers would no longer be able to claim "success fees" from the losing side, and should instead receive a share of the damages. The government says it hopes the changes will act as a disincentive to anyone bringing "spurious cases".

But shadow justice secretary Sadique Khan warned they "could restrict access to justice" for poorer claimants. The proposals follow a review carried out by Lord Justice Jackson in 2010 at the request of the previous government.

The judge found huge rises in civil litigation costs in England and Wales in recent years and said reforms could save people millions.

According to the BBC's legal correspondent, Clive Coleman, critics say the scheme can encourage unscrupulous lawyers to take frivolous accusations to court. Mr Clarke told the Commons that he wanted to restore "proportion and confidence" in the justice system.

"We plan to end the recoverability of success fees and insurance premiums, which drive legal costs, award claimants a 10% uplift in general damages where they have suffered loss, and then ensure that they take an interest in controlling the bills being run up on their behalf by expecting them to pay their own lawyer's success fee," he said. The proportion of any damages that can be taken by lawyers will be capped at 25%.

The justice secretary said he believed "no win, no fee" was one of the reasons for recent increases in the cost of car insurance, and he hoped the planned changes would help drive premiums down.

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source: BBC

EU wants no petrol or diesel cars in cities by 2050

There should be no petrol or diesel cars in city centres by 2050, the European Commission has proposed.

Transport Commissioner Siim Kallas also set out plans to shift half of "middle distance journeys" from road to rail, and to cut shipping emissions by 40%. He said: "Freedom to travel is a basic right for our citizens. Curbing mobility is not an option. Nor is business is usual."

The proposal would cut carbon emissions by 60% and reduce dependence on oil.

source: BBC

Vauxhall plant in Luton secured by Vivaro decision

The future of the Vauxhall plant in Luton has been secured after a decision was made to build the new Vivaro van at the UK site.

It had been feared that the site would close in the next few years. The union said the decision, which will safeguard 1,100 jobs, was "fantastic" news.

Owner Vauxhall, the UK arm of General Motors, said the site would continue to play an "important role" in its manufacturing network. An existing contract between Vauxhall and French counterpart Renault to use the site had been due to run out in 2013.

The decision to continue production at Luton comes after the two car companies agreed last September to extend their collaboration on light commercial vehicle manufacturing, which first began in 1996.

Meanwhile, production of Renault's new Trafic van - also a product of the two firms' partnership - as well as the high-roof Vivaro will be at Renault's Sandouille plant in Normandy.

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source: BBC

UK car production up 15% in February, says SMMT

UK car production rose 15.1% in February from a year ago, as export-led growth continued. There was also a 10.2% rise in engine output, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

Paul Everitt, SMMT chief executive, said there had been a 27% increase in exports, which "highlights the strength and competitiveness of UK products". He warned that next week's Budget must support the industry, not damage it.

The Budget "will be crucial in creating the conditions for further investment in skills, R&D and capital equipment, all essential for growth and maintaining global competitiveness," he said.

February's rise in car output means production over the first two months of the year is now up 12% on 2010. The SMMT said commercial vehicle production was down 3% in February, but for the first two months of 2011 was up 2.6%.

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source: BBC

Legal & General predicts good growth in the UK

The head of insurance giant Legal & General has predicted good growth in the UK as more people take control of their own financial affairs. Tim Breedon said the firm "will be a growing force as the welfare state retrenches" and people look for insurance and savings provisions.

L&G unveiled annual pre-tax profits of £1.09bn, up from £1.07bn, on worldwide sales up 28% to £1.8bn. L&G also beat its £600m cash generation target by making £728m.

The company's savings division was a key driver, with operating profit up 130% to £115m and net cash generation up 134% to £68m.

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source: BBC

Japan's global firms strive for 'business as usual'

The battering stock markets have received in the wake of Japan's earthquake is another vivid demonstration of how globalised the world now is. Companies and banks with bases in the UK, but with employees and even headquarters in Japan, are monitoring the situation in Tokyo and assessing how best to proceed.

While many organisations say they continue to watch the situation, none BBC News spoke to would admit to considering moving personnel out of Japan at this point - whether they're Japanese, from the UK or anywhere else. The emphasis is on preserving business continuity and, in the case of the big corporations actually aiding the relief efforts with massive donations of cash and trucks full of supplies.

Potentially the most vulnerable industry is the motor manufacturing sector, with companies building cars in Britain and the EU requiring parts from all over the world - and Japan in particular.

Toyota suspended production for three days in Japan itself while it checked on the safety of employees and their family members, as did other car-makers. That could result in a minor knock-on effect on parts for its models in the UK, though that would not be felt instantly because the components take six weeks to arrive here by sea.

Nevertheless, workers at Toyota's two plants in Burnaston and Deeside have been told they will get an extra Saturday off - 26 March - while the supply catches up. Other plants in the EU are also due to suspend operations at weekends.

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source: BBC

Transport Select Committee report on motor insurance misses the point says the ABI

Responding to the publication today (11 March) of the House of Commons Transport Committee report into the cost of motor insurance, Nick Starling, Director of General Insurance and Heath at the ABI, said:

“This report is a missed opportunity. The Committee took a great deal of evidence, and has chosen to ignore much of it.

The Committee has failed to recognise that the main cause of the recent increases in motor insurance premiums is ever- increasing personal injury claims and spiralling legal costs. These are often driven by claims management firms. The Committee should have called on the Government to implement in full the recommendations of Lord Justice Jackson’s report into tackling the compensation culture. This will not only control excessive legal costs, but will speed up the payment of compensation to genuine claimants. Until this happens the cost of motor insurance will continue to rise."

“Legal costs alone now add an extra £40 a year to the average motor premium, and motorists should not have to foot the bill for our cost-ridden compensation system.

“The Committee is also wrong to say that referral fees should be more transparent. They are a symptom of a dysfunctional compensation system, not the cause of it. This is why the industry wants to go further than the Committee recommends and ban them altogether.”

On the Committee’s comments on tackling insurance fraud and young driver road casualties, Nick Starling commented:

“Insurers are also working hard to combat insurance fraud, including funding the Insurance Fraud Bureau, which works closely with the police in investigating organised motor insurance frauds.

“What the Committee has got right is to call for more action to reduce the appalling number of accident casualties among young drivers. The Government must act now to fix our failing driver training regime, through measures such as introducing a minimum learning period.”

For the full article on the Association of British Insurers website click here...

source: ABI

DfT says 'lifts don't count as private hire'

The Department for Transport (DfT) has published guidance on what constitutes a private hire vehicle (PHV). It confirms that "most informal courtesy lifts offered by, for example, rental car companies or garages would not fall within the PHV licensing regime."

The guidance follows a review of legislation after the BVRLA highlighted the concerns of rental companies threatened with legal action by local authorities on the grounds that their vehicles had to be licensed to pick up or drop off customers.

"We estimate that compliance with private hire regulations would have cost members £3m a year and restricted the level of service rental firms could have offered to their customers," said Jay Parmar, head of legal services at the BVRLA. "We welcome the extra clarification."

The DfT's guidance note has been sent to interested stakeholders for comment by 25 March 2011 and will then be subject to ministerial approval before being published. Copies are available from BVRLA legal services executive Amanda Brandon.

Contact: Amanda Brandon, e: amanda@bvrla.co.uk t: 01494 545701

To visit the BVRLA website and to become a member click here...

source: BVRLA

UK new car sales fall 11.5% in January

Sales of new cars in the UK fell for the seventh month running in January, according to the Society of Motoring Manufacturers and Traders (SMMT).

New car registrations last month were 128,811, down 11.5% from a year ago. The fall was in line with the SMMT's forecast, and was partly due to the ending of the car scrappage scheme. The SMMT added that the market share for cars with low CO2 emissions had increased to 2.7% from 1.4% in the same month last year.

UK-built cars maintained the same share of the market as a year ago, with 13%. The Ford Focus was the best selling new car last month with 7,582 new cars registered.

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source: BBC

Giant Andy Scott statue felled in roundabout crash

A giant sculpture of a striding man by public artist Andy Scott has been knocked over in a car accident. The 4m (13ft) structure, installed at Muirside roundabout, Tullibody, in Clackmannanshire, is one of five pieces in the county by the artist.

It is understood a car crashed into the statue, which sits outside the village police station, at about 2110 GMT on Saturday. Central Scotland Police said they were investigating the incident.

The sculpture - also known as the Man in Motion - is made of welded steel mosaic and has the Wallace Monument and Stirling Castle as a backdrop. Brian Smith, a college lecturer who lives near the sculpture, said the impact of the crash must have been considerable.

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source: BBC

New blue badge parking crackdown

A crackdown on abuse of the disabled "blue badge" parking scheme in England has been announced by ministers.

It is estimated that use of up to half of the existing 2.5 million badges could be fraudulent, costing the UK an estimated £46m a year.

More people are to face mobility tests to get the badges, which offer special parking rights, and councils will have greater powers of confiscation. Use of blue badges has soared by more than a third in the last 10 years. The badges allow access to special parking or the right to avoid parking restrictions.

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source: BBC

ABI says cold weather sees UK insurance claims double to £1.4bn

The freezing weather in December resulted in £1.4bn of insurance claims on property and vehicles in the UK, figures have shown.

This is more than twice the £650m claimed due to the cold snap the previous year, the Association of British Insurers (ABI) said. The snap was more severe, longer and affected more of the country.

Burst pipes caused the most problems, with more than 100,000 claims totalling £680m, the ABI said. More than 250,000 vehicles were damaged as a result of the snow and ice on the roads, leading to £530m of claims.

Figures released last month showed that the cold weather was largely responsible for the contraction in the UK economy during the final three months of last year. The economy shrank by 0.5%, but activity would have been "flattish" without the impact of the bad weather, the Office for National Statistics said.

source: BBC

DVLA warns drivers of email scam

The Driver and Vehicle Licensing Agency (DVLA) is warning of an email scam that asks drivers to verify their licence details via a website link.

The email, which purports to come from the DVLA, appears to be an attempt to trick drivers into providing personal details.

David Evans, the DVLA's corporate affairs director, said: "We would strongly urge anyone in receipt of this or a similar email to treat it with extreme caution and not to follow the instructions given."

To visit the DVLA online services page click here...

source: BVRLA

A future without car crashes?

More than a million people die around the world in car accidents each year but experts in the industry now believe fatal smashes could be eliminated. Some hope there could be an end to car crashes altogether.

Accidents can be caused by a multitude of reasons, but human error is at the heart of them. Drivers go too fast for the weather conditions, make unwise decisions and fail to notice or anticipate potential hazards. But what if the car could help the errant driver?

Scientists and engineers are developing technology and enhancements to cars that would aid drivers to the extent that crashes would become rarer events. Bad weather conditions and poor judgement would be mitigated by the car itself. Drivers, passengers, cyclists, pedestrians and motorcyclists could one day be protected from bad driving.

Sophisticated technology is also being mapped out to ensure drivers and passengers can survive even catastrophic accidents.

Volvo believe in the future they can stop cars from ever crashing. They are developing auto-braking technology to ensure cars come to a stop when they sense another car coming close to them - both from the front and the side.

Scientist Erik Coelingh has been testing his crash avoidance technology at their test track in Sweden. He has high hopes for the research being carried out at Volvo: "We believe that accidents are not inevitable. And we have a vision that in - in the future there will be no collisions, will be no fatal accidents with vehicles any more."

For the full story from the BBC click here...

source: BBC

Fraud costs UK economy '£38bn a year'

Fraud costs the UK economy £38bn a year, with more than half of that suffered by the public sector, according to official estimates.

The National Fraud Authority (NFA) said that if the total cost was broken down, every UK adult would be £765 worse off. The NFA said "a stronger counter-fraud culture" was needed.

Cabinet Office minister Francis Maude said the £21bn cost of public sector fraud could pay for 800 secondary schools or 615,000 nurses. The cost to the private sector was £12bn and charities lost £1.3bn, the NFA reported, while individuals' losses were estimated at £4bn.

Frauds included marketing scams, bogus operators, fake lotteries and online ticketing and rental crimes.

Bernard Herdan, of the NFA, said the authority's annual fraud indicator was a "blueprint" for work to tackle the "rising tide" of fraud. Everyone should make an effort to protect themselves and share information on suspicious behaviour with the authorities.

"We want to develop a stronger counter-fraud culture, which helps to disrupt fraudulent activity across the UK and globally," Mr Herdan said.

For the full story and updates from the BBC click here...

source: BBC