#UK

I ought to start this article off with the reasons as to why I decided to write this article. I got scalded recently for criticizing Jack Baruth’s article on why Top Gear USA will fail. On reflection, the scalding was well earned. It’s a bit unprofessional to criticize a fellow worker’s work no matter how much you disagree with it.

But this set off a light bulb in my head. Why should I post a comment about why I disagree with an article, and get browbeaten, if I can write an article of my own, highlighting my thoughts? Isn’t that the American way? Why give something away for free, when you can sell it?

Last month, I asked whether the UK car market had taken a blue pill. The reason I’d asked is because sales were rising despite the local “bangers for cash” scheme had ended months ago. Well, it appears that the effects are finally wearing off (I was going to say “flopping” but we’ve used that metaphor enough). The SMMT reports that UK new car registrations fell 13.2 percent in July 2010. This marks the first month in this year where sales dropped. This is expected to continue through 2010 as the market slows down. This is not surprising as the government cutbacks will start to take effect this year.

“A drop in private registrations compared to the scrappage-fuelled months of 2009 was expected and has brought the first market decline for 12 months,” said Paul Everitt, SMMT chief executive. “Subdued consumer confidence and a still fragile economic recovery make the outlook for the remainder of 2010 challenging, but a stronger than expected first half means full year volumes are still forecast to exceed 2009’s total.”. Another curious finding of the report was how diesel vehicles are now the dominant powertrain of choice, with market share up to 50.6 percent. Anyway, shall we take a closer look at the figures?

When you hear “McLaren” mentioned during Formula One races, do you sometimes want one? Now you can. Street legal. And a steal for only $280,000 MSRP. To make that dream possible, McLaren group has taken on £40 million ($63m) worth of loans from HSBC to finance the construction of a new factory in Woking, Surrey. The new factory will be the home of McLaren’s new super car, the MP4-12C (catchy name!). McLaren is forecasting to build 1,000 units in the first year of production, but within five years, McLaren is hoping to be building 4,000 units per year. One of the main selling points of the MP4-12C is the fact it’ll be able to get to 124mph in 10 seconds. It even has air brakes, implements usually used to bring jet fighters to a stop.

With all the hubbub over Volvo, it’s easy to forget that Geely already owns a foreign carmaker: Managnese Bronze, the company that makes London’s iconic black-cabs. Well, Geely doesn’t “own” Maganese, they hold a 19.97 percent share. That is about to change.

Which? is kind of the UK version of Consumer Reports. They publish a bunch of magazines. If you want a computer, you get the latest edition of Which? Computing, if you need a vacation, you leaf through Which? Holiday, and for a car, you get – you guessed it – Which? Car. You will receive quite a shock if you do.

The TaxPayers’ Alliance and Drivers’ Alliance last week calculated that UK speed cameras issued £87,368,227 (US $131,256,380) worth of tickets in fiscal 2009 without any demonstrable safety benefit. Since speed cameras were first installed on British roads in 1991, the roads became more dangerous than they would have been without photo enforcement, according to the report.

China’s Changan (joint venture partner of Ford, Suzuki and PSA) wants to draw on British engineering know-how and established a research-and-development center in Nottingham, England.

The BBC reports that new car registrations in the UK have inexplicably risen 10.8 percent in June 2010 compared with this time, last year. What makes this “inexplicable” is the fact that sales have risen, despite the fact that the “cash for clunkers” scheme had ended on March the 31st, 2010. “The new car market continued to perform above expectations in June,” said the Society of Motor Manufacturers and Traders (SMMT) chief executive Paul Everitt said, “The results indicate improved business confidence and a strengthening economic recovery.” However, a quick look at the SMMT report reveals a potential answer. The article shows that fleet sales grew 25.3 percent. Those pesky fleet sales! Let’s take a quick look at some of the brands and their performance, shall we…?

Auto Express reports that GM is going to sell the Chevy Chevrolet Camaro in the United Kingdom by May 2011, with a convertible version later that year. It will only be available in the top level Gestapo SS trim, and will have the 6.2 litre, 426bhp V8 engine. Unfortunately, GM couldn’t be bothered to respect local driving customs and will sell the car in left-hand drive only. That’s right. Pricing is yet to be confirmed as exchange rates are sensitive at the moment, but GM is aiming to keep the pricing in line (I thought it was a V8?) with the Nissan 370Z, which starts at £28,345. Now while there are many American-philes (probably located in the North of England) who are doing a “dosey-doe” around their living rooms at this news, there are a few of problems (and here comes the pessimistic part).

Europe is a bit hybrid-adverse and far removed from Japan, where the Toyota Prius has been leading the charts for the 12th month in a row. In a move to convert Europeans into hybrid-lovers, Toyota started production of their hybrid Auris in the UK.

I don’t know whether you know, but the UK government has a deficit of £155b which needs to be slashed. On June the 22nd, Chancellor George Osbourne laid out his plans on how to eliminate that ugly budget gap. VAT would be increased to 20 percent from 17.5 percent, civil servants would have their wages frozen and benefits would be slashed. Yep, life is going to be pretty grim in the UK for the next five years. Unless you’re a multi-national company with an electric car up your sleeve.

After one year of ownership we would expect EV residual values to be above the segment average expressed in terms of pound values. But, if the battery is owned rather than leased, and lacks the appropriate extended warranty, the value of the typical EV will then fall dramatically until the vehicle is five years old, at which point the car will have a trade value little more than 10 per cent of the list price

So says Andy Carroll, managing director of the British car-buying bible, Glass’s Guide. He tells BusinessCar that Nissan and other firms launching EVs in Britain should take out the battery cost and lease it to customers with minimum monthly performance clauses. This, he says, would dispel concerns, drive sales, and transform the resale picture. It’s also what Project Better Place is doing, albeit in a complete regional package with battery-swap stations and charging infrastructure.

If there’s one reason we dedicate as many pixels as we do to the rise of speed cameras in the US, it’s the UK. We’ve seen how speed cameras have taken over Old Blighty, jamming the newswires with reports of mis-ticketing, unwarranted surveillance and popular backlashes against the dread cameras. But apparently the UK has decided that, with more speed cameras than any other nation on earth, it’s time to stop building more. Totallymotor reports that road safety minister Mike Penning has announced that his new conservative government will stop financing the construction of speed cameras by local authorities, bringing an end to a decade’s worth of camera build-up. Penning tells local authorities that they are free to purchase cameras with their own money, but that the government will encourage the use of alternative safety measures.