NEW CAR sales for the first two months of this year fell by 65.3 per cent on the same period last year, according to figures from the Society of the Irish Motor Industry (SIMI). New car registrations for February were just 8,950, compared to 24,119 for the same month last year, while overall sales for the first two months were down to 24,835 from 71,569 in 2008.
Sales of commercial vehicles, often a bellwether for economic activity, are down by 84 per cent to just 838 for the first two months of the year.
Alan Nolan, SIMI director general, described the latest sales figures as “appalling”, and warned that the current sales trend would be disastrous for the industry.
“Time is critical if the Government is to introduce incentives such as a scrappage scheme. If such schemes are introduced too late in the year it will be almost impossible for them to have a positive impact.
“We know the state of the nation’s finances and understand that damaging the prospects of stability will not serve any of us well. As a result, all of SIMI’s proposals are self-financing while the scrappage scheme proposal will actually increase State revenues.”
Speaking to The Irish Timeson the eve of the Geneva Motor Show, John Fleming, chief executive of Ford Europe, backed the introduction of scrappage schemes across Europe.
He said the success of such schemes had already been demonstrated in several continental markets and they offered benefits not only to the car industry but to the environment as well by reducing overall emissions levels as people moved to cleaner cars.
Mr Fleming also criticised the “nationalistic” approach being taken by several EU governments towards offering financial assistance to the motor industry. He called for an EU-wide approach to the problem.
European car firms are struggling with over-capacity as demand plummets, but it’s the turmoil in the US market that is dragging many established European brands into trouble.
General Motors, which last week reported a $30.9 billion (€24.6 billion) loss for 2008, has sought local government assistance for its European brands. Its Swedish brand, Saab, sought creditor protection last month and it has proposed breaking off its Opel brand into a separate entity in return for German government aid. Meanwhile Ford has put its Volvo brand up for sale after already off-loading the Jaguar and Land Rover brands.
