Car sales in UK fall in July
The registration of new vehicles fell by 13.2% in July with the Society of Motor Manufacturers and Traders warning that the immediate outlook for the sector is sluggish at best. This comes only months after the UK government's latest £400 million car scrappage scheme ended which was ultimately the reason why the sector has enjoyed something of an "Indian summer" of late. So what next for the UK car industry?
While there is no doubt that the financial strength of many car manufacturers and car retailers in the UK improved dramatically when the car scrappage schemes was in place, the situation is very different today. However, despite the fact that the support of the scrappage scheme has been taken away, there is some underlying strength within the UK car market. Whether this will be enough to see the industry through a potentially difficult patch in the latter part of 2010, and 2011, remains to be seen.
The UK government has already made it plain that there is no more funding available for the UK car industry and any troubles in the future will need to be addressed by the private sector. Where this will leave UK car manufacturers in the long term remains to be seen.
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