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Volkswagen Predicts World Car Sales to Fall 20 Percent in 2009

22/06/2009 By Andrew Morgan Leave a Comment

Volkswagen Predicts World Car Sales to Fall 20% in 2009

The chairman at Volkswagen, Martin Winterkorn has told a German newspaper that he predicts world car sales will fall by up to 20% this year and that the manufacturing industry will soon be forced to confront painful changes to survive. Winterkorn feels confident in making these observations as he believes that Volkswagen, as Europe’s largest car maker, will survive the crisis better than others, but will still see a fall in sales which could be as high as 10%.

The situation facing vehicle manufacturers all over the world is one of continually falling sales, slowing production, and an inability to even move the stock filling their showrooms. Winterkorn has admitted that the situation for Volkswagen is not ideal either, but that the car maker is not facing the same crippling challenges many of its competitors are battling with.

While the end of 2008 was difficult economically for many businesses, the initial financial troubles have served to show Volkswagen that they are prepared for, and can handle to some degree, the worst. However, being prepared and surviving long term in this state are two very different things and even the Volkswagen chairman admits ‘we cannot go on like this’.

Winterkorn sees the fall in sales continuing into the new year, however was able to confirm Volkswagen’s forecasts for 2008, including an increase in sales and operating profit, without revealing any of these figures. Volkswagen is also not planning to reduce the working hours at any of its factories either.

With such honest and insightful predictions from an industry leader in luxury vehicle manufacturing, it now seems likely that while the initial shock and effect of the financial crisis has eased, it is far from over, with many in high end, luxury industries being the most heavily hit, even if only at varying degrees.

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A Club With No Cars

22/06/2009 By Andrew Morgan Leave a Comment

A Club With No Cars

Is there anything more morbid, lonesome or drear … than a club with no cars? Perhaps that is an overreaction, it’s not like we’re talking about a pub with no beer… In fact, a Hertz car club may just be a clever alternative to ownership when more and more people are finding it difficult to keep a roof over their heads, let alone a car in their garage.

The Hertz car club targets city drivers, and on the surface appears to be the rental car company turning its back on it car manufacturing suppliers, by encouraging people to stop buying new cars. Hertz is one of the world’s largest car customers  and buys 550,000 cars every year, and in 2009 plans to offer an alternative to car ownership, not to mention create a new way to grow their brand.

The global car club market is worth one billion US dollars (£667 million) and over the next ten years that figure is predicted to hit ten billion. Currently car club appeal to those who live in the big cities and still need a car occasionally, but don’t want to deal with the hassle of actually owning one. So, with more and more people migrating towards the cities, car clubs, and other pay as you go transport will soon experience even more growth.

With vehicle manufacturers already struggling, some say this shift towards hire vehicles will only hit them harder. However, while you are making the most of being in a car club like Hertz, brought together by your absence of a vehicle, Hertz and other clubs like it are still updating and increasing their fleets. The Hertz car club plans to operate in London, Paris and New York, offering members who have paid a membership fee, access to their all vehicles in their fleet, whenever they need them – booked in advance of course.

Hire cars in London are not a new concept and car clubs have been operating for many years in the mainstream. Of course ordinary rental cars are not the only options for those wanting to be part of a club but don’t have the wheels for it. In fact, being part of the limousine or coach hire circles in big cities like London, Manchester or Birmingham gives you access to only luxury vehicles, all without the membership fees too.

Filed Under: All News, Industry News

Driven by the New BMW 650i

22/06/2009 By Andrew Morgan 1 Comment

Driven by the New BMW 650i

Most of us would love to have a chauffeur driven luxury car or limousine on hand to drive us wherever we needed to go without ever having to worry about the mundane concerns of having to control the car we are riding in. Well unfortunately not everyone has the opportunity to have their own hired help on hand around the clock, but what you can have instead is the new BMW 650i which can drive you around almost as effortlessly as a chauffeur.

The latest technology to make it into the BMW 6 Series is Active Cruise Control with Stop & Go Function. This means that – in theory – you can drive around town in your new luxury car, without having to worry about any fancy footwork, or any footwork at all.

The system works by focussing on the vehicle in front and maintaining a safe distance which driving, and pulling up to a stop behind that vehicle when required too. The BMW’s system does of course fall down when there are no vehicles in front of you, and for example, when you are taking a tight corner and your car can no longer see the car in front of it because it has rounded the bend.

However, in steady traffic is has been found to be possible to drive across cities without ever having to worry about a brake or accelerator pedal, if you can handle it. Since the new BMW’s automatic braking and accelerating system is constantly working out its speed and measurements, it knows the exact amount of time it needs to successfully brake, which can sometimes be considered less time that would be allowed by most drivers.

But while the 650i may seem to live dangerously, it can be impatient and if it sits in traffic at a complete stand still for more than two seconds, it will revert to manual operation, but this can be simply reset again when you get on the move. There are also safety features which will correct for other contingencies, for example if the car detects any understeer for example, it can take care of that too.

However, if this all sounds a little too technical, and a little too much like hard work – you do still have to steer after all – there are still plenty of chauffeur driven BMWs out there for hire.

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Manchester to vote on road traffic charge

21/06/2009 By Andrew Morgan Leave a Comment

The plans to introduce a charge on driving and in and out of Manchester city centre will be put to the people from next week.

For a two week period local residents will be able to cast their votes as to whether they support the plans to introduce fee to drive in the northern city.

The public response will then be taken into consideration as the local authorities weight up the pro’s and con’s of the scheme.

Drivers in their car hire transport will be keen to learn the outcome of the referendum, which will affect how road users can access the city.

The plans to introduce a charge face significant opposition, not least from the Manchester Against Road Tolls (Mart) group, which has a website dedicated to voicing their objections and mobilising support for their cause.

A congestion charge was introduced in Central London by the city’s then mayor Ken Livingstone in 2003.

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