The two associations have written a letter to the Chancellor Alistair Darling, and business secretary Lord Mandleson, calling for Government action.
A range of measures to stimulate the motor industry have been requested. These include:
• Increasing capital allowances for business and fleet buyers
• Shelving plans to reform business car capital allowances
• Scrapping changes to road tax rates and the introduction of a first year rate.
• Issuing business rate relief
Paul Williams, RMIF chairman, said: ‘It is vital that the motor industry present a united front at this time. These measures and others, jointly presented by the two industry trade associations, would go some way to helping the revival of consumer confidence in our sector.
‘We urge the Chancellor to undertake these measures, and to discuss further action with us if necessary.’
Paul Everitt, SMMT chief executive, said: ‘The dramatic falls in demand for new vehicles in the UK, Europe and around the world, combined with the limited availability of funding and liquidity, now puts at risk valuable industrial capability.
‘Urgent action is required to boost demand for new vehicles and ease pressure on UK automotive suppliers. The Pre-Budget report should set out the strategy and measures needed to restore consumer confidence, and support valuable industrial capability during this difficult period.’