New car sales hit a 42-year low in August prompting calls from the Society of Motor Manufacturers and Traders for the Government to take action as the country heads into recession..
Fuel prices, the credit crisis and growing uncertainty over the economy have all been factors in hitting showroom traffic and manufacturers alike. The figures also raised further fears that the UK’s economic slowdown was gaining momentum.
With the August new car market down by 18.6% to just 63,225 registrations (August 2007: 77,649), the demand for action was echoed by the Retail Motor Industry Federation.
I do not quite understand what exactly the government is supposed to do here? We are in a recession and simply have to ride the storm. August is always a quite month anyway before the new registrations. Well basically they want the government to boost the economy and restore confidence. With luxury marques and 4x4s the worst affected, experts warned that many dealerships could go to the wall in the next two years. However, manufacturers could be cushioned by more favourable conditions abroad.
While August is traditionally a slow month for sales, The Sun quoted analyst Howard Archer as saying: "Even allowing for that, this is very worrying. Sharply deteriorating car sales are a further clear sign that consumers are cutting back on their spending. It is likely that many are retrenching out of choice, reflecting serious concerns about the economic outlook."
I think it is called buttoning down the hatches until all this doom and gloom, like a hurricane, has passed.
Jackie Violet - Female First