Gossip, Gossip and more Gossip

Volvo car corporation have announced that they plan to shed around 10% of their suppliers by the end of 2009. Bernt Ejbyfeldt, senior vice-president of purchasing has said that the move was part of restructuring plans in his division.

He went on to say that the first step in reducing the number of suppliers was to cut back by 10% this year. 

Bernt Ejbyfeldt was appointed last year to establish a purchasing department that would enable Volvo to stand independently from Ford, its parent company. He established a quality hub in the Czech republic which is closer to the companies suppliers. This has brought about a marked improvement in quality as each supplier is assessed every month and they must achieve an acceptable level of quality in order to continue to receive orders.

Volvo are responsible for having already introduced 191 new variants so far this year. There is currently a high demand for low CO2 emitting vehicles, partly prompted by the UK governments tax incentive for low emission vehicles. 

If you are looking for a new car I can strongly recommend that you consider leasing a new Volvo as you will not only be doing your bit for the environment but you will also save yourself some useful cash.

The French government recently announced a €6.5bn loan to support the country’s struggling car industry. It is the latest in a long line of similar measures taken by authorities around the world to protect jobs and the economy through the recession. A worldwide slump in car sales has left even the most established car manufacturers struggling, and millions of workers are in danger of losing their jobs.

In the UK there have already been a number of job losses despite the government lending large amounts of money to help keep business afloat. A number of factories have had to close temporarily and the Japanese carmaker Nissan has just become the latest to announce that it will be cutting almost 10% of its global workforce, including 1200 positions in its UK factories.

In these times of recession, it’s difficult to see how the car industry will ever recover. With things as they are, most people are feeling the strain and need to keep a close eye on their finances. It’s safe to say that buying a car is the last thing on most people’s minds, and until the economy starts to improve the motoring industry can’t do much more than bide its time.

But direct sales are not necessarily the only option for car dealers. If the problem is that people don’t have enough money to buy cars upfront, the answer could be to offer more car contract hire deals where customers lease their car on a monthly basis until the cost has been paid off. The availability of these deals means that buyers have more choice when it comes to cars – they can choose a car that may normally be out of their price range, which means more money for the car manufacturers in the long run.

Contract hire is a great deal for the consumer too, not only does it mean you get a wider choice of more desirable cars but the payment is in manageable instalments and there are often loads of other benefits thrown in. The contract will often include extras like servicing costs and road tax in the monthly price, so there’s less for people to worry about. Basically, it’s a win win situation!

So you want to get a new car but can’t seem to make your finances stretch far enough? Or perhaps you’ve already seen the car of your dreams, but know there’s no way you’ll ever be able to afford it. You’re not alone – the motoring industry has been hit hardest of all by the recession and sales have reached an all time low. It seems no one can afford to think about purchasing a new car right now.

But don’t let that discourage you – there is another option. There is a way you could still get the car of your choice, without even having to pay upfront for it. Car contract hire or leasing agreements are a great way to choose the exact car you want and you only have to pay one manageable monthly fee.  

I know what you’re probably thinking, there has to be a catch, right? Well, in fact, no there really isn’t. Sure you have to sign a contract but you get to choose from whichever car you want, even those that would normally be out of your price range. In fact, the more desirable the car is, the better deals you can usually get. It’s not like buying a new car where the value decreases with time, most contract hire agreements are based on your projected usage so they take wear and tear into account and when the contract ends you can trade it in for a newer model.

Choosing contract hire will usually also help with the running cost of having a car – often the road tax and servicing costs are thrown in to the monthly instalments so you won’t find yourself suddenly landed with huge repair bills. And it’s less likely to break down as you can trade it in every couple of years, so you’ll always have the latest new model.

Basically, it’s a really beneficial and financially viable way of getting a new car without any of the worries of buying outright – and it really does make sense, especially now when times are hard. And who knows, you might even be able to get your dream car after all!