Taxi Driver Online

Part of an article written by John Read of the FT highlighting the plight of the Motor industry.

Bleak outlook for motor industry

Britain's car industry faces its most difficult conditions in 17 years and the market might not stabilise for another year, the Society of Motor Manufacturers and Traders said yesterday.

New car registrations fell by 21.2 per cent last month from a year ago, marking the fifth consecutive month of decline. September - the start of a new registration period - typically accounts for nearly a fifth of annual sales. The SMMT said last month's figure was "exceptionally weak".

Across western Europe the car market fell by 9.2 per cent last month from the same period last year to an annualised 12.75m units, according to J. D. Power and Associates. The industry consultancy said yesterday the car market could now "only be framed in terms of past serious recessions" such as in the early 1990s. It said the September data suggested the UK market would suffer further large falls in demand into next year.

The SMMT said the UK's car market might not recover before the third quarter of 2009. But it also noted that the US economic rescue package, lower oil prices and "a positive message in the pre-Budget report" from government could help to lift the gloom.
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I would assume the problem isn't just getting folks to want to buy a new motor, but getting the finance to pay for the thing.

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IDFIMH

Also when times start getting hard, many people start thinking that the old motor still has a few years left in it.

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