• Car Dealer Plus
No Result
View All Result
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
No Result
View All Result

Warning sounded over ‘perpetual state of Brexit limbo’

Car Dealer Magazine by Car Dealer Magazine
September 16, 2019
0
Home News

THE ‘perpetual state of Brexit limbo’ might be more damaging in the long run for the automotive industry.

That’s according to Alex Buttle, director of car-selling comparison website Motorway.co.uk, as he reacted to the latest SMMT figures for new car registrations.

‘After yesterday evening’s debacle in the House of Commons, it now looks odds on that Brexit will be delayed again, and that means more uncertainty for the foreseeable future.

‘Everyone wants an end to the current Brexit situation. And while the car industry will be relieved that a ‘‘no deal’’ appears off the table for the time being, this perpetual state of Brexit limbo could potentially be more damaging for the long term.

“Consumer confidence won’t be restored until we are able to move on from Brexit, whether we leave the EU with or without a deal. The longer this situation persists, the more lasting damage will be inflicted on the domestic car industry, and the longer it will take to recover.’

Meanwhile, Sue Robinson, director of the National Franchised Dealers Association, said: ‘The minor decline in new car sales was highly anticipated as these figures were against a record August in 2018 boosted by the introduction of the WLTP emissions regulation.’

But she added: ‘Although the introduction of the new Real Driving Emissions testing from September should not have as strong an effect on the market as WLTP last year, especially thanks to the one-year derogation granted by the government, the market may remain slightly distorted over the next months.’

Miss out

Ian Plummer, commercial director at Auto Trader, said: ‘Unsurprisingly, the market is down, despite retailers’ and manufacturers’ best efforts as they sought to beat the new Real Driving Emissions test deadline by registering large volumes of cars before the end of the month.’

And he warned: ‘If we continue to see an exchange rate at or around parity with the euro, the UK may even miss out on the best and newest EVs, as manufacturers may make the decision to divert the vehicles to other markets where these cars are not only more profitable but also more certain to count for the imminent and very stringent fleet emissions targets that they need to comply with from next year.’

AA Cars chief executive James Fairclough said: ‘August sales are traditionally lower than other months, but that is to be expected ahead of new plates coming on September 1.

‘I think the true test of the health of new vehicle sales will come in the next few weeks, and all eyes will be on Britain’s forecourts to see whether September’s new plates will deliver the anticipated boost that everyone in the auto industry is hoping for.’

Michael Woodward, UK automotive lead at auditors and financial consultants Deloitte, warned: ‘Despite an encouraging month, there are potential headwinds. The value of the pound against the euro has fallen by 16 per cent over the past three years, including a decline of five per cent in the last six months.

‘So far, the consumer has been shielded from price rises associated with currency fluctuation, but if the pound continues to decline, manufacturers may be forced to pass on the costs to consumers. If they do this at a time of surplus stock in used cars, this could put a huge dent in demand.’

Picture: House of Commons/PA Wire/PA Images

MORE: New car market dips as electric car registrations surge

Related Posts

Train tickets on fence
News

Feb 28 round-up: £5bn restart grants; Rail fares rise; Free Covid tests for pupils’ families

February 28, 2021
Rishi Sunak
News

Budget 2021: What could it mean for car dealers and the automotive industry?

February 28, 2021
Billy Monger crosses finish line
News

Feb 27 round-up: Sunak warns ahead of Budget; FTSE hit on metal prices; Billy Monger completes 140-mile challenge

February 28, 2021
Volkswagen Passat GTE plug-in electric car being charged
News

VW suffers post-tax profit drop of 37 per cent but says that was better than expected

February 28, 2021
Supercar graphic
News

Moving on up: Here are the top 10 used supercars to buy if you want to see a return on your investment

February 28, 2021
Subaru sign via Newspress
News

Subaru adds three dealers to network with plans for at least 15 as part of restructure that will see 10 leave

February 27, 2021

Want the latest news?

Sign up to Car Dealer's daily news email updates

Subscribe
How many car dealerships does each manufacturer have in the UK? Car Dealerships Locations List 2021 revealed
News

How many car dealerships does each manufacturer have in the UK? Car Dealerships Locations List 2021 revealed

February 24, 2021
Used Car Awards with Mike Brewer and James Baggott graphi
News

Who won what at the Used Car Awards 2020? Mike Brewer reveals our winning car dealers

February 11, 2021
Car Dealer issue 156 front cover and Used Car Awards
Online Magazine

Out now: Car Dealer issue 156 features our Used Car Awards, H.R. Owen CEO Ken Choo and lots more

February 23, 2021
Used car market stronger than ever as August sees sales up by nearly 50 per cent for Big Motoring World
News

Opinion: Here are 10 reasons why I think there’ll be a rapid recovery in car sales when lockdown ends

February 16, 2021
Trophy Cars forecourt
News

Investigation: Meet the hyper-specialist car dealers making their money from weird and wonderful motors

February 11, 2021
Become a Car Dealer Plus member and get more out of this website including free legal advice
News

Become a Car Dealer Plus member and get more out of this website including free legal advice

January 15, 2021
Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK
Car Dealer Top 100

Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK

February 10, 2021
Bitcoin ATM terminal
News

Will car dealers in the UK accept Bitcoin for payment? Dealers speak out after Tesla plans to accept cryptocurrency 

February 18, 2021
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
Call us: 020 8125 3880

© 2020 Blackball Media

No Result
View All Result
  • Car Dealer Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100

© 2020 Blackball Media

Log In
Register
Register
Server C