Dealers will have to fight for every sale.
Christopher Macgowan
Export volumes continue to boost car production in the UK. Eight in every ten cars made in the UK in November is destined for export markets and we expect the 2005 total to reach record volumes and market share. Overall car output in 2005 should hit 1.6 million units, a little down on 2004 but still a strong performance.
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All of those volume manufacturers (are) struggling with those high-run production cars, and that is the part of the market that's causing them problems -- not because they are Ford, but because that part of the market is very competitive, in a middle-Europe man typical standard car.
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We expect 2006 to be another tough year for the industry. Dealers will continue to fight hard for every sale.
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There is little scope for significant price reductions, but we will be seeking to work with the government to ensure that U.K. Customers continue to buy with confidence from U.K. Dealers.
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So far this year the market has suffered from two things; firstly a surge in demand for diesel cars distorting the market at the end of 2005 and secondly weaker consumer confidence.
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Government must not burden automotive manufacturing in the UK off the European map. Manufacturers must have the confidence to develop their operations and government must help us meet the competitiveness challenge. That means a light regulatory touch and an integrated approach to regulation in environmental and transport policy.
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Government has to embrace the concept of incentives in driving the market for the cleanest vehicles. Beating car buyers and commercial vehicle customers with tax penalties, while ignoring incentives, is absolutely counter-productive.
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Improvements in efficiency, on top of strong export demand, have helped boost commercial vehicle production.
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The new 2006 registration and some excellent deals have seen new buyers heading back to dealerships.. But 2006 will continue to be a challenge as we fight for every sale.
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