Despite measures to stimulate the UK economy and the car market, 2009 is set to be the most challenging year for the automotive industry since 1991, say credit industry analysts.
Although the sharp increases in prices on essentials during 2008
finally subsided almost as sharply towards the end of the year,
consumer spending did not resume as quickly and will continue to impact
car sales throughout2009. This is one of the key findings from
the latest Automotive Market Insight Report from Experian, the global
information services company. Experian’s report highlights
consumers’ cautious approach to big-ticket purchases, but also where
the pockets of opportunity lie for the automotive sector – such as
increased activity in the used car sector. Providing an in depth view on how the UK ’s automotive industry was impacted during the final six months of 2008,
Experian’s report explores how these factors have influenced the
current shape of the industry and how they will continue to influence
it in the coming months. Drawing on Experian’s wealth of consumer and business data and analytics, the report identifies some of the following trends: Consumer
sentiment, which had remained subdued towards the end of last year,
appears to be picking up in the used car sector this year, indicating
that cost conscious consumers are looking into less costly alternatives
to new cars. The new scrappage scheme may help stimulate the same in
the new car market. There has been a big backlash against larger vehicles in the new car sector as cars, such as 4x4s, plummeted in sales. Demand for the smallest models on the market, however, shot up. Fraudsters
are increasingly turning their attention to the automotive industry, as
the number of fraudulent car finance applications detected by Experian
increased by 51 per cent, compared to the last six months of 2007 The
launch of more eco-friendly cars plus the possible introduction of
incentives to encourage more sales of electric cars is sparking a
speedier move over to the green agenda.
SsangYong Saved
SsangYong Motor cleared a significant hurdle in its
restructuring plans when a South Korean court gave its approval to put
the plans into action. The court confirmed a recent Samil
PricewaterhouseCoopers assessment that the manufacturer had a greater
value as a going concern than its liquidated value, and ordered
SsangYong to submit its full restructuring plan by mid-September. Paul Williams,
managing director of distributor Koelliker UK Ltd. said, “This is the
news we were hoping for and it means that SsangYong now has the
lifeline it needs to implement major changes. "The future will continue
to be difficult, as it is throughout the auto industry, but the result
should mean a leaner, much more efficient SsangYong. We already know
that there will be a broader range of passenger cars using the latest
petrol, diesel and hybrid technology, and the first – the C200 – will go into production later this year. Our dealers can now go forward with renewed confidence.” Court receivership gives the company protection from creditors and time to formulate and implement a corporate resuscitation plan.
BCA has launched a new and additional programme of Live Online auctions available throughout the country. The
new programme, known as Live Online Select, features a broad range of
used vehicles and sellers and are held regularly at all of BCA’s UK
auction centres. Stock on offer in Live Online Select sales is from
a range of vendors including regional fleets, small businesses, solus
dealers and smaller dealer groups alongside a selection of vehicles
from larger corporate vendors. Tony Gannon, BCA Communications
Director commented, “Live Online Select provides a national selling
platform for smaller regional sellers, who do not have the volume of
stock turnover to support a dedicated solus remarketing programme.
These sellers operate a range of vehicles from prestige and executive
cars to typical volume fleet product that will all benefit from the
wider exposure that Live Online can bring.”
.gif){kind=small}