January saw
car sales slump 31 per cent, with the worst monthly figures
since 1974. For some niches in the
car market, the slump was even more severe, with luxury
vehicles plummeting 65 per cent in sales.
Fleet sales also dropped by 35 per cent, with firms cutting
back on
company cars .
The government has stepped in with a 2.3 billion GBP attempt to
rescue the industry, but whether this is too little, too late
remains to be seen.
Society of Motor Manufacturers and Traders chief executive Paul
Everitt reportedly commented: There is a clear need to
stimulate demand for
new vehicles in the UK market. A number of EU member states
have launched scrappage incentive schemes, which have the benefit
of boosting consumer confidence and delivering significant
environmental improvements. The
motor industry is urging UK government to introduce a similar
scheme and help sustain jobs and businesses throughout the
sector.
The fine points of the governmental aid package are yet to be
clarified, although it is thought that they will help
car finance arms to provide
loans to new customers.
