UK new car sales collapse
The Society of Motor Manufacturers and Traders (SMMT) has announced that new car sales have fallen by 23% over the last 12 months in the UK. The decline in new car sales is the largest since the early 1990s although the situation looks set to get worse before finally recovering in line with the UK economy. Those who read the press will have seen a number of buying one car and get one free offers which although planted to get the attention of buyers, reflects the difficult situation many car retailers find themselves in.
The SMMT is forecasting full-year sales of 2.15 million new cars in the UK and is hopeful that ongoing interest rate reductions will encourage demand in due course, as will the scrapping of an increase in vehicle excise duty. The industry is in need of any assistance available with more and more car retailers reporting financial difficulties and even the majors starting to cut back on costs.
In hindsight the UK new car market is probably more at risk than many other industries because luxury spending and business vehicle purchases are very often one of the first casualties of an economic slowdown.
Share this..
Related stories
Saga notes upswing in savings deposits
Savings deposits at Saga have hit £3 billion, the account provider announced today.According to the firm, deposits made now are also 50 per cent up on those made at the beginning of the year.The upwards trend in savings have come as householders look to safeguard their personal finances in the current economic climate, rather than overextending themselves on credit cards and loans.Recent rate cut...
Read MoreMPs to probe banking practices
An influential group of MPs is to investigate claims the country's banking sector is overcharging consumers. The Treasury committee plans to probe competition in the industry as well as the perceived end of 'free' banking. Last year First Direct became the first bank to announced fees for its current accounts. There have been suggestions that banks are looking to new ways to charge customers to co...
Read MoreNational Institute of Social and Economic Research issues UK report
The National Institution of Social and Economic Research (NISER) has stepped forward with yet another downbeat statement on the UK economy. They believe that the UK economy will fall by 1.5% in 2009 and unemployment could hit a high of 2.5 million by 2010 although they forecast that inflation will fall within the government's 2% target in the medium term.
It is also forecast that th...
Is the government planning to overshadow the Tory Party conference?
As we await news from the Chancellor with regard to the future of Bradford and Bingley (even though it seems as though most of the details have already been leaked) there is a growing suspicion that the government is looking for political gain with regard to the expected announcement. All of the journalist have their pens at the ready and are waiting to write the news about Bradford and Bingley,...
Read MoreConsumer confidence 'on the decline'
Consumer confidence has fallen significantly over the past quarter, Standard Life's Savings & Investment Index has shown.A score of 11 in October 2007 fell to just three in January 2008 - both figures well down on October 2006's high of 23.Poll respondents were asked on whether or not they would like to invest their money in a variety of sectors in order to compile the index.Director at Standard L...
Read More