F&I Management & Training

Carmakers are urging the UK Government to adopt radical, one-off stimulus measures to boost consumer confidence after another sharp drop in sales. New car sales figures from the Society of Motor Manufacturers for September, which were published yesterday (Monday, October 6), showed a 21% year-on-year fall in registrations. The plea came as Europe's motor industry called on the European Commission for €40 billion in loans and incentives aimed at re-animating the continent's plummeting car market. A number of UK-based car manufacturers have already announced production cutbacks as a result of falling sales at home and abroad. Automotive retail groups are also beginning to cut staff and close outlets in response to the sales decline. A survey by weekly publication Motor Trader has suggested that 40% of dealers expected to make redundancies this year. Fears are also growing among manufacturers that a substantial downturn in the UK automotive industry - Britain's biggest industry - will lead to the collapse of some companies in the supply chain. SMMT chief executive Paul Everitt said: "Unless confidence returns to the economy, it's going to be difficult to get people to buy high-ticket purchases." The SMMT is calling on Government to suspend fiscal rules, cut interest rates, reverse plans to increase Vehicle Excise Duty rates, put in place a United States-style stimulus package and boost demand for housing, among other policy measures aimed at reviving flagging consumer confidence. Carlos Ghosn, the chief of Renault and Nissan, has become the latest boss of a major carmaker to call for European governments to support the motor industry. He has echoed calls from colleagues made last week for government help to speed development of more fuel-efficient, low emission vehicles with 'soft loans' similar to those already pledged by the US Government to the tune of $25bn

DATED: 07.10.08

FEED: AW