6:56 pm, March 4, 2009
GOVERNMENT support is needed for the entire car industry chain, one car chief has told Car Dealer.
The Peugeot spokesman said that helping out manufacturing facilities was fine, but this was doing little to support dealers further down the line.
‘The whole problem is buyer confidence,’ he said. ‘It seems to be forgotten that there are thousands of dealers, each employing 40 or more people – these are still British jobs at stake!
‘Propping up production is not going to fix this.’
He wants to see Madelson’s initiatives to focus on incentivising new car buying.
‘Giving the new car market confidence is something we see as being down to government,’ he said.
One possible solution, he said, would be to introduce an old car scrappage scheme, as run successfully in so many European countries.
‘It could comprise a period of no VAT being charged on cars which emit below a certain emissions level,’ he suggested.
‘Such government endorsement would help get customers into dealers, so they can at least begin the discussion.’
by RICHARD AUCOCK
