News from the world of motoring
PRICES UP: Average retail prices for new cars in Ireland rose by 7.4 per cent over the 12 months to March 2003, according to the latest European Index of New Car Prices. The movement in retail prices here was 2.8 per cent stronger than across Europe as a whole, where retail prices rose by an average of 4.6 per cent in the year to March.
New car retail prices in Ireland are 32 per cent higher than the average price of a new car in the euro currency zone.
TALKING NOZZLES: Petrol firms may soon be trying to distract motorists from the flickering figures on the pump. Instead of nervously watching their money fly out of their pockets, some drivers in Britain filling up with petrol are being entertained by "talking" nozzles. A "fueling talker" system is being installed at 300 forecourts, providing a 90-second audio programme. While filling their cars, drivers can hear about congestion hotspots and roadworks as well as getting information about the grade of fuel selected. Already a success in the US, the system has been patented for Europe by the DirectCast Network company.
FORD PROFITS: Ford shook off the gloom enveloping the automotive sector last week when the second-largest carmaker reported a return to profit in the first quarter of the year and reiterated its full-year profits goal. Net income rose to $896m for the first three months of the year compared with a $1.1 billion loss a year ago. Bill Ford (below), chairman and chief executive, said: "Our first quarter performance demonstrates that the acceleration of our cost-cutting actions and the management team's focus on improving our core business are making a difference."
However, while well ahead of expectations, analysts have been almost universally sceptical of the full-year forecast - and arch-rival GM warned that its full-year profits target was in doubt because of a tougher than expected US market and global economic uncertainty.
VW BATTLES: The boardroom battle at VW continues, with CEO Bernd Pischetsrieder preparing to stamp his authority on Europe's largest carmaker. Pischetsrieder said he would start with a "blank sheet of paper" in allocating the top jobs after a fall-out with Robert Büchelhofer, who quit as sales and marketing director last week. Pischetsrieder said a new "modular" approach to component sharing would cut investment and research and development spending by 20 per cent over the next decade. Critics blame the rigidity of the platform strategy for the age of VW's model range, which has led it to lose market share.