Archive for November, 2009

Management takeover saves 109 jobs

More than 100 jobs have been saved at an under-threat vehicle parts company in Bishopbriggs.

A management takeover at a vehicle parts company has saved more than 100 jobs near Glasgow.

John McGavigan Ltd, based in Bishopbriggs, fell into administration in September but administrators have now sold the company to its former management preserving 109 jobs.

Eleven members of staff were made redundant immediately after the company fell into administration.

New owners David Taylor and Steve Mathers say they are confident the company, which makes panels for dashboards, temperature gauges and speedometers, can grow.

The government’s scrappage scheme boosted car sales in Scotland by 45% last month on the same period the previous year.

A statement from the new owners said: “The manufacturing sector and especially the automotive market has gone through an extremely difficult time over the past year, however, we were determined to ensure the survival of the McGavigan business.

“Through the determination of our customers, our workforce, many of our suppliers and the added support of the Scottish Government agencies, we have managed not only to save the business, but to put in motion steps which will allow the business to grow from strength to strength.”

The company was part of a US-based group and had an annual turnover of £9million before falling demand in the car industry.

Administrator Blair Nimmo of KPMG said the prospect of a sale over the past eight weeks often looked “bleak”.

He added: “Since our appointment on September 14, the commitment on the part of employees and the ongoing support from customers who have been working with us to preserve the business has been exceptional.

“This sale represents a fantastic result for everyone involved, and we would like to wish the new owners and the business every success in the future.”

Sourced via news.stv.tv

Cruze Chevrolet boasts of unique features

Its great time for car lovers as a new stylish car has arrived in Indian market with a powerful engine and great look.

The car has been rolled out in India with the slogan ‘choose power, choose saftey, choose style, choose cruise’ by General Motors (GM) India on Monday. It is the first car in the company’s long awaited 300 series.

The introductory price for the LT model is Rs 10.99 lakh followed by the LTZ model for Rs 12.45 lakh. In the beginning, Chevy Cruze will be available with diesel engine. It has several descriptions like touch sensor in the handles for opening the doors, and rain sensitive wipers and some others.

The Cruze will give a mileage of 18.3 km to a litre, says the Automotive Research Association of India (ARAI).

President and Managing Director of GM India Karl Slym said the Cruze is all about value, refinement and power-packed diesel performance combined with an array of features. It offers everything any Indian car buyer could want in a sedan at a price point that represents uncontestable value for money. We expect it to perform well against the established D segment players.”

Slym further said the company already has around 1,200 pre-launch bookings for the Cruze. “We are looking to sell about 500-600 units a month. The D segment currently sells about 3,500-4,000 units a month. We intend to become the segment leader,” he said.

According to GM, it has recorded the highest-ever monthly sales in September at 7,654 units, up 49 per cent from 5,154 units sold in the corresponding period a year- ago. Slym said, “The first six months have been dismal. This year we expect to repeat the 10 per cent growth of 2008”.

Sourced via samaylive.com

Much merit in proposal to scrap TV licence fees

The Department of Communications’ proposal to scrap television licences and fund the SABC from the national fiscus is a welcome development. We believe that the time, energy and financial resources spent administering and enforcing the current system cannot be justified and that a direct charge to the taxpayer would be preferable, although the public broadcaster should still attempt to offset as much of its costs as possible from advertising revenue.

Further, if all funding for the SABC is to flow from government then it is imperative that its independence is guaranteed and that it does not become a post-1994 version of “His Master’s Voice”. The manner in which the SABC board is selected is one area that needs urgent attention as it is effectively in the hands of the ruling party. A new approach to the selection of the board should be written into the new legislation.

The whole notion of a public broadcaster must surely be that it presents the widest possible spectrum of opinion, particularly as far as politics is concerned, and not simply be a mouthpiece and part of a propaganda machine.

The proposed demise of television licences raises the question of whether it is not time for the whole issue of revenue collection to be examined critically and whether consideration should not be given to ending personal income tax and replacing it with VAT imposed on a sliding scale with luxury items taxed at the highest rate.

This would obviously require sophisticated systems to accommodate the different VAT rates that would possibly be imposed by a single enterprise. But once operative, would it not be a more efficient way to collect the revenue contribution required from individuals than the present system where revenue services face a serious challenge with enforcement.

It would also make tax avoidance considerably more difficult as the vendor would continue to serve as a collection agent, but on a much larger scale with revenue being collected quicker than is the case at present.

Given that basic foodstuffs would continue to be VAT-exempt and this could be extended if necessary, the poor should not be adversely affected but those more affluent would pay for the luxuries they desire.

Any change would obviously involve considerable research and investigation but we believe it would be worthwhile to at least explore this option.

Whatever emotion might be stirred by the announcement by Volkswagen of the end of South African production of the iconic Citi-Golf after 31 years, it will be tempered by the assurance that no jobs will be lost as a result.

At a time when the motor industry has experienced a sharp downturn in sales as a result of the economic recession and thousands of jobs have been lost, that must be good news.

Further, while VW has declined to reveal “what comes next” – and will only do so in March next year – that does signal the company’s commitment both to South Africa, the Eastern Cape and Nelson Mandela Bay, where the automotive industry is of critical importance to the provincial and the local economy.

While government is obviously reluctant to single out one economic sector for special treatment, and it would be wrong to suggest the industry has not benefited from the Motor Industry Development Plan given its strategic importance in one of the poorest provinces, a case can be made for special attention.

Specifically, assistance in achieving higher levels of local content would be extremely useful, not only because of cost issues, but also because of the investment such a programme attracts, the jobs it creates and skills that will be honed.

Sourced via timeslive.co.za

Citi Mk1 Limited Edition – the final chapter in the life of the iconic Citi

Volkswagen of South Africa is paying homage to the original Golf 1, with the introduction of a final limited edition Citi, aptly branded, Citi Mk1. Only 1000 of these collectors’ cars will find their way into the hands of motoring enthusiasts in South Africa and around the world.

The introduction of Citi Mk1 to the Citi range is a fitting gesture to send off and close the final chapter of the best-ever selling hatchback in South African motoring history. Citi has provided South African motorists with a fun, unique, affordable driving package for 25 years. It has defied all marketing textbook theories on the lifecycle of a brand. Citi will remain a legend for decades to come.

Since 1978, when the Golf 1 was launched in South Africa, Volkswagen of South Africa has produced 377 484 Citi’s and a total of 517 384 A1 Golfs (including the Citi’s). The Volkswagen of South Africa plant in Uitenhage has been the only plant in the Volkswagen Group to have continued building the legendary A1 Golf in the guise of the Citi Brand.

Citi made its first appearance on South African roads in 1984, six years after Golf 1 was introduced in South Africa. Volkswagen of South Africa launched the Citi as its affordable car to compete in the entry level segment following the introduction of a bigger and more expensive Golf 2 – the “Jumbo” Golf as it became affectionately known.

For 25 years, the Citi range has continuously been refreshed and kept alive with innovative, appealing special and limited editions such as the Designa, CTI, Deco, Sonic, Wolf, Bafana Bafana, R Line, Xcite, Billabong and most recently the GTS.

The latest and last limited edition of the Citi range, the Citi Mk1, is offered with the 1.6i engine which has a power output of 74kW at 5400rpm.

The Citi Mk1 is fitted with 15-inch, gunmetal painted alloy wheels and will have a polished exhaust tailpipe, dark taillights, double headlights and chrome highlight around grille. On the sides, it will have GT-styled stripes in chrome foil.

The interior has sport seats with partial leather, leather steering wheel, the original golf ball gear knob, floor mats with Mk1 logo and red stitching detail throughout.

Citi Mk1 will only be available in two colours, Black and Shadow Blue metallic.

Only 1000 units will be available and each will have a unique number – from 1 to 1000 – which will be embossed on the passenger side dashboard and integrated into the uniquely designed exterior Mk1 logo.

Like other Citi models, Citi Mk1 comes with the standard 3 year/120 000km warranty.

Volkswagen AutoMotion maintenance and service plans are optional.

Citi Mk1 retail price is R113 500 (VAT included).

Citi bids farewell to South Africa

Two of the last produced Citi Mk1 units will join other Volkswagen Classic cars that are on permanent display at the Autostadt, the Volkswagen Group Museum and Brand Expo in Wolfsburg, Germany and at the Volkswagen AutoPavillion Brand heritage centre in Uitenhage.

At the Volkswagen of South Africa production plant in Uitenhage, it was an emotional day for the employees when the last Citi, Citi Mk1 001, rolled off the production line to mark the official end of the A1 production. Thousands of employees attended a special event to bid farewell and pay tribute to the legend and the people who have been crafting the A1 (Citi and Golf 1) by hand for more than 30 years. Over 120 employees, who are still employed by Volkswagen of South Africa, have worked for more than 20 years on the A1 production line.

Meanwhile, a Goodbye Tour to the Citi will kick off on 12 November 2009 in Uitenhage and will end on 22 November 2009, back at the home of Citi in Uitenhage. The tour will take the limited edition Citi Mk1 across the country with major stopovers in Cape Town, Bloemfontein, Johannesburg, Pretoria and Durban. At each city or town where Citi Mk1 will stop, the local public will be invited to make their mark on the car that has made its mark on so many people in South Africa by signing the last Citi ever produced.