Reilly to implement GM Europe turn round plan by end of 2009

Nick Reilly, the interim boss of General Motors Europe, is aiming to have a restructuring plan in place by the end of the year and implemented in the first six months of 2010.

He believes that it is going to ‘take some time’ for GM Europe to return to profit, not least because car scrappage schemes, which have boosted sales in a number of European countries including the UK, are coming to an end.

As a result, he conceded: “2010 looks like it might be a very difficult year.”

Mr Reilly, who was installed to the post following the departure of Carl-Peter Forster in the wake of GM’s decision not to pursue a sale of a majority stake in the business to Magna International, is initially focusing on meetings with government and trade union officials in a number of countries where the manufacturer has plants.

In the UK, Mr Reilly is this week due to meet Business Secretary Lord Mandelson and Tony Woodley, joint leader of the Unite union.

Mr Reilly will not be drawn on the number jobs likely to be lost at GM Europe as a result of the restructuring, merely saying that the original plan envisaged 10,000. (The Times: November 14).

Dutch lead way with national road pricing and other nations may follow

The Netherlands is to scrap all road and vehicle taxes and replace them with a road pricing regime in a move that will be closely monitored by other countries, including the UK.

The system, which is scheduled to be introduced in 2012, is expected to cut the total number of kilometres driven in the country by 15% and CO2 emissions by 10%.

Rather than increasing the total tax take from drivers, the Dutch system will raise the same amount of revenue while shifting journeys to less congested routes and times and on to public transport.

The government estimates that 59% of drivers will pay less by the kilometre than they are currently charged in road and vehicle taxes.

The Dutch system will work by installing satellite tracking devices in cars in order to measure the distances and time of day they are driven, allowing for variable pricing at peak times in congested areas. (Financial Times: November 14).

GM to start loan repayments early

US carmaker General Motors (GM) has said it will start paying back its government loans earlier than expected.

It will make its first payment of $1.2 billion to the US government next month. GM had not been required to begin repaying the loan until 2015.

The news came as the company reported a loss of $1.2bn from July 10, when it emerged from bankruptcy, to September 30.

GM chief Fritz Henderson said the firm still had work to do but the results were evidence of a ‘solid foundation’. He pointed out that GM had a healthier balance sheet with lower debt levels. Revenues for the period were $28bn.

GM owes the US government $6.7bn and the Canadian government $1.4bn. Canada will also receive its first payment in December. In addition, Germany will be repaid the outstanding €400m euros that it lent in support of GM’s European business, Opel.
(BBC.co.uk: November 16).

Jaguar Land Rover signs £170m finance agreement with GE Capital

GE Capital has struck a five-year deal with Jaguar Land Rover, the UK based subsidiary of Indian group Tata Motors, to provide the carmaker with working capital of up to £170 million.

The finance will be used for finished vehicle stocks between the points of production and onward sale to dealers on a revolving basis.

Ken Gregor, Jaguar Land Rover’s chief financial officer, said: “We are pleased that our funding plans have further progressed and welcome the confidence shown by GE Capital in the Jaguar Land Rover business.” (Motor Trader: November 16).

Road users can play their part in keeping England moving in winter

The Highways Agency has urged road users to play their part in keeping the nation moving during the winter months.

The Agency, which looks after England’s motorways and major A roads, says it is ready to face severe weather as the country head into the winter months.

A Highways Agency survey of road users found that more than half of those questioned had encountered one or more types of severe weather warning in the previous year.

However almost half (48%) admitted that they would not carry out any vehicle checks even after hearing a severe weather warning, and just under a quarter (24%) would not change their journey plans.

More reassuringly, four out of ten (43%) drivers said that although they would continue their journey as planned they would monitor conditions or take extra precautions.

Martin Hobbs, the Agency’s head of severe weather strategy, said: “This year our new state-of-the-art winter vehicles are being used in more parts of the country, and since last winter we have reviewed our salt stock levels and taken action where needed to make sure we are ready.

“Although we’re well prepared for winter, we need road users to play their part too. Not every journey is essential in severe weather, and our survey shows that sometimes people head out anyway without taking steps to avoid being caught out.

“So we are asking drivers to carry out simple vehicle checks before they set out; to carry a severe weather emergency kit in their vehicles; and to monitor the traffic and weather conditions and plan their journeys by using our website, listening to DAB digital ‘Traffic Radio’ or local radio stations, or by calling our information line (08457 50 40 30).”

The Agency says that it is not just snow and ice, but also strong winds, heavy rain and thick fog that can affect journeys on the roads. (Highways Agency: November 16).