Ernst & Young Comment On SMMT’s Latest Car Registration Figures
Eric Wallbank, Ernst & Young’s UK head of automotive comments on the SMMT’s latest car registration figures, “The rapid decline in sales volumes has been worse than many expected, with the current economic climate creating volatility and unpredictability in the automotive industry. The automotive industry across Europe now appears to be suffering in the difficult trading conditions, with all major markets showing a decline in October – even France which had previously shown resilience and demonstrated growth in September.
“In these uncertain times, what we can be sure of is that there are tougher times to come. As the UK economy contracts and both consumer and corporate confidence weakens further, the effects will be felt on the forecourts of the car dealerships and on the factory floors of both Vehicle Manufacturers (VMs) and suppliers.
“VMs will need to make tough decisions on revising production levels to match weakening demand; any reduction in volumes will also hit suppliers hard; whilst dealerships will see reductions in their already tight profit margins. We have already seen a number of car dealerships go into administration and I expect more to follow over the coming months. The outlook is far from rosy for the UK auto industry.”
Simon McBride
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