Car Sales Down 9%

[exiges]

It's the car-less recovery..

http://www.bbc.co.uk/news/business-11023431

UK car production fell heavily in July, figures have shown, dropping 8.9% on the same month last year.

Just over 98,000 cars were produced in the month, according to the Society of Motor Manufacturers and Traders (SMMT).

The drop comes after a run of eight straight months when production increased.

"The easing of demand was anticipated following the end of scrappage incentives in markets around Europe," said SMMT chief Paul Everitt.

'Challenging conditions'

"UK vehicle production is more than 40% up on last year's levels and whilst we expect some challenging conditions, economic growth has returned in all major markets around the world."

Total vehicle production was down by 7.5% to 107,578 in the month, and engine and engine production fell 3.4% last month.

But commercial vehicle output grew by 10.7% in July and by 43.2% in first seven months of the year.

And car production for the year-to-date was 41.7% higher than in the same period in 2009, the SMMT said.

The government scrappage scheme introduced last year, which offered new buyers a £2,000 discount if they scrapped a car that was more than 10 years old, had helped to boost demand.

[ralphmalph]

Apolgies for being pedantic, is it car sales down as per the thread title or car production down as per the text in the post?

[Georgia O'Keeffe]

It's the car-less recovery..

http://www.bbc.co.uk/news/business-11023431

UK car production fell heavily in July, figures have shown, dropping 8.9% on the same month last year.

Just over 98,000 cars were produced in the month, according to the Society of Motor Manufacturers and Traders (SMMT).

The drop comes after a run of eight straight months when production increased.

"The easing of demand was anticipated following the end of scrappage incentives in markets around Europe," said SMMT chief Paul Everitt.

'Challenging conditions'

"UK vehicle production is more than 40% up on last year's levels and whilst we expect some challenging conditions, economic growth has returned in all major markets around the world."

Total vehicle production was down by 7.5% to 107,578 in the month, and engine and engine production fell 3.4% last month.

But commercial vehicle output grew by 10.7% in July and by 43.2% in first seven months of the year.

And car production for the year-to-date was 41.7% higher than in the same period in 2009, the SMMT said.

The government scrappage scheme introduced last year, which offered new buyers a £2,000 discount if they scrapped a car that was more than 10 years old, had helped to boost bring forward demand.

Fixed, all very useful of course for ensuring an even bigger collapse once the bought forward demand is extinguished

[LittleSteroid]

yep, time for more QE and another Scrappage Scheme....we are saved!

[Errol]

Clearly we need to print more money to buy cars (don't laugh, they might just do it).

[tinker]

Hardly a surprise, interfering with the market to create artificial demand - bringing it forward. At some point real demand will catch up. It's a bit like Government spending having been brought forward. At some point it has to be paid for.

[Georgia O'Keeffe]

Hardly a surprise, interfering with the market to create artificial demand - bringing it forward. At some point real demand will catch up. It's a bit like Government spending having been brought forward. At some point it has to be paid for.

i disagree with certain aspects but the premise is sound as a pound

jaguar inflation

[tinker]

i disagree with certain aspects but the premise is sound as a pound

jaguar inflation

Is the pound sound?

Political interference and short-termism are a problem. Sometimes they need to let it be.

[plummet expert]

yep, time for more QE and another Scrappage Scheme....we are saved!

Of course! They should do a scrappage scheme for cars only 5 years old!!! Or perhaps houses which are not energy efficient enough? Knock 'em down and build 3 where there was one - sure to improve the quality of life - nice new bathrooms and hardly any garden to keep.

Again another subsidy which has begun to backfire. 'You cannot buck the market'. You can put it off at massive public expense if there is an election though.

[right_freds_dead]

i just ordered a new car. what the hell. why not. im beyond waiting anyway.

[feed]

Apolgies for being pedantic, is it car sales down as per the thread title or car production down as per the text in the post?

It's production and it's only UK production.

Which may be locally interesting, but yes it's meaningless without context.

[Redcellar]

Daft article. UK production does not equal sales. We make specific models over here and ship many of the cars overseas. Likewise they make many other models in EU and ship here. For example, I think the Astra is made here and the Insignia in Germany. So the article is complete sloblock and means nothing. So we produced a few less Astras? Point being what?

I just wasted my time posting this too

[aa3]

Why not on the next 1 million British made cars people get £5,000 national stimulus rebate? Cost £5 billion. Hardly anything compared to the 175 billion QE last year, and the hundreds of billions in banker bailouts and guaruntees.

[Pauly_Boy]

Apolgies for being pedantic, is it car sales down as per the thread title or car production down as per the text in the post?

It's the number of cars actually created as far as I'm aware. I saw it on the news, they said that car creators were cutting mack on creating because they suspect we're double dipping

Edited August 20, 2010 by Pauly_Boy

[Dorkins]

Why not on the next 1 million British made cars people get £5,000 national stimulus rebate? Cost £5 billion. Hardly anything compared to the 175 billion QE last year, and the hundreds of billions in banker bailouts and guaruntees.

Because there are better things to do with 5 billion quid than save comfortably well-off people money on their new cars?

[profitofdoom]

Car Sales is complicated and has many factors that can distort the figures,so much so that it is only a general guide to the state of the economy. To begin with for the last four years my year has been split in terms of profit 60/40 in favour of the first half.Scrappage had many effects but the most marked was a move downwards in terms of size and specification,and therefore price. This was quite easy to se from the scrapyards and trade in compounds of the dealers involved, filled with Escorts,306s,Mondeos,Astras, when the dealers were selling Ka,Peugeot 107,Fiesta,Corsa etc.

I personally predicted this,on this site I seem to recall,that what they would achieve is relatively high sales of small low profit units that would hoover up all the advance business,and so it has come to pass.In the last few weeks I have seen main dealers buying from auctions with absolutely no idea what they are doing apart from to move into used.Some of the cars they have been buying us established second hand dealers wouldn't touch with a bargepole.

[MrPin]

.Some of the cars they have been buying us established second hand dealers wouldn't touch with a bargepole.

It does seem that the scrappage has encouraged many people to shell out on models which depreciate vastly.

All cars depreciate of course..

[profitofdoom]

It does seem that the scrappage has encouraged many people to shell out on models which depreciate vastly.

All cars depreciate of course..

I am not sure that is the case.In fact it sems the reverse with £6995 on the road entry models with poverty specs prevailing. Yesterday I was asked by a lady what her 57 plate Ka bog basic was worth.It was about £3000 trade.She paid £4995 new three years ago,so less than £2000 for three years if she sells to me.Privately she might see £3500.