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Car Production Down By Nearly A Half

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http://www.independent.co.uk/news/business...lf-1491881.html

Car and commercial vehicle production slumped by nearly half last month, official figures showed today.

The number of cars made in December fell 47.5 per cent compared with December 2007, while commercial vehicle (CV) production was down 56.7 per cent.

The huge falls last month meant that car production for the whole of 2008 was 5.7 per cent down on 2007, with CV production falling 5.9 per cent.

Society of Motor Manufacturers and Traders chief executive Paul Everitt said: "UK vehicle production figures for 2008 demonstrate both the strength of the sector and the very dramatic fall in demand in the last quarter.

"UK facilities are globally competitive with high productivity levels and hugely attractive model line-ups. Exports account for 75 per cent of all UK vehicle production, serving more than 100 markets around the world."

He went on: "The automotive industry is of strategic economic and social importance, reflected in the measures to support the industry being discussed by governments across Europe and around the world.

"The SMMT has been in close discussion with the UK Government on the urgent need to improve access to credit and kick-start demand in the market, in order to sustain valuable industrial capability during this exceptionally difficult period.

"SMMT is looking forward to meeting with Lord Mandelson before the end of January to receive the Government's response to the proposals we submitted at our November meeting."

Big big falls.

And the solution is more debt

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This phrase 'Kick-start' is very much in vogue at present, the implication being that 'the machine' (car industry, housing market, or whatever ) is ready to roar into life with just a little prompting.

Trouble is the brakes are jammed on, the fuel is contaminated and the driver is slumped at the wheel weeping.

The problems we face are systemic, and the toxins remain in the system. Micro solutions will not solve macro problems.

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Guest sillybear2

I think we should print money in order to destroy peoples' purchasing power, this will enable them to buy cars.

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I think we should print money in order to destroy peoples' purchasing power, this will enable them to buy cars.

Good plan, I see no catches at all.

But will our politicians and central bankers go with such a no-can-lose idea?

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Perhaps they should lower their prices.

I have just had a look at a 2006 CRV on the forecourt for 14K.

I spoke with the salesman and asked him what the best price he could do and he said he would take their standard £500 for new cars off - not impressed. I have no part-ex so thought "w*nk"!

Didn't even ask me for my name and contact number and even admitted that another H dealer 40 miles up the road was cheaper. Tried to sell me it on their reputation and after-sales service.

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Guest sillybear2
Perhaps they should lower their prices.

I agree, the government should underwrite and subsidise credit deals allowing manufacturers to charge more.

That's what you mean, right?

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I'm surprised that Nu Liebour haven't put a spin on this e.g. government saves planet through reduced car sales - lower CO2 emissions (except every time Gordon Brown breathes).

Gordon Brown mainly outputs CH4 - that's why he doesn't smoke.

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Are we seeing an evaporation of aspirations too? I mean people losing interest in having a better car as long as the one they've got works OK.

In Japan, the boss of Honda has recently highlighted the fact that Japanese people are losing interest in cars and fewer young Japs are learning to drive, while being a young non-driver is no longer seen as 'uncool'.

Another reason I think the car market is particularly vulnerable here and elsewhere is because of the number of families that run 2 or more cars. My guess is that a lot of multi-car families will be reducing their 'fleet' in the recession.

Edited by blankster

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Are we seeing an evaporation of aspirations too? I mean people losing interest in having a better car as long as the one they've got works OK.

In Japan, the boss of Honda has recently highlighted the fact that Japanese people are losing interest in cars and fewer young Japs are learning to drive, while being a young non-driver is no longer seen as 'uncool'.

Another reason I think the car market is particularly vulnerable here and elsewhere is because of the number of families that run 2 or more cars. My guess is that a lot of multi-car families will be reducing their 'fleet' in the recession.

That was the boss of Suzuki. He made a good point though.

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THIS INDUSTRY DOES NOT DESERVE THIS!

and before you ask no i,m not a car worker i,m an electrician.

i rememer buying a fiesta rs1800 in 1994 it was a top of the range sporty job and cost £12800 , i was alot younger and would not buy the same car now however the now top of the range fiesta st is available for less than 10k reduced from alist price of just over 13k as is an outgoing model.

my point is this 2009 cars are very improved on 1994 cars ,safety,quality,economy,etc but most of all have not increased in price from 1994 to 2009 and if you take into consideration real price with inflation etc they have decreased in price consideraby with an increase in quality. people have spent so much on housing that other areas of the economy have suffered , many without just cause.

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It was stated on BBC News 24 that 75% of cars made in the UK go for export - whats this going to do to our balance of payments.

Its not like we have any money to import anything either and with the low pound our exports will be more likely to grow (or shrink less) than our imports do!

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http://www.independent.co.uk/news/business...lf-1491881.html

Big big falls.

And the solution is more debt

It's like a child having its sweeties taken away, and then bawling away to get them back.

This really is the conclusion to overpriced houses sucking all that money out of the economy: less to spend on the real economy (good and services) and less money available to put away for the rainy day that was bound to come.

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What the government should do is to slap massive taxes on fuel, then put an even bigger annual tax on the ownership of cars. Then to top it off, they should fine motorists till the pips squeak for actually daring to use their cars.

Then they should borrow some money from the Chinese, the repayment of which will be extorted from the taxpayer, with interest, at a later date.

All of this money should then be loaned to motorists in the form of interest paying loans, so that they can "afford" to borrow enough money to buy a new car.

Wot cud possiblie go rong?

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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