Tony Worthy• New car registrations were up 10.8% in June and 19.9%
during first half of 2010. A 25.3% rise in the fleet market helped
to sustain the growth momentum. The market was up despite the end
of the scrappage scheme, but volumes are set to slip in second half
of 2010.

 

• A new study by valuation specialist Glass’s
states that the used car scrappage scheme stimulated new car sales,
apparently without pull-forward of future new car sales. Less than
10% of customers who bought under the scheme planned to buy a new
car in future years. Without the £2,000 incentive, the vast
majority of buyers would instead have chosen to purchase used cars
when the time came to change their vehicles.

 

• Each year the UK produces 1.5m cars and
commercial vehicles and 3m engines, accounting for 10.6% of the
country’s total exports. With an annual turnover of £52bn and a
workforce of more than 820,000 people, the industry is a
significant contributor to the UK economy. Car production rose by
54% in May and was up 62.6% over the year-to-date. Commercial
vehicle output rose by 129% in May and 55.7% in first five months.
UK engine production was up 35.9% in May and by 40% over the
year-to-date.

 

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• Dealers will be hit hard as new car prices are
pushed up, which could unbalance recovery in the automotive market.
The rise in VAT in January 2011 could prompt customers to bring
forward purchase decisions on a new car.

 

• Consumer demand for new car finance rose 20% in
April, the eight consecutive month of growth, according to the
Finance & Leasing Association (FLA). The FLA said although
dealer finance was lower than pre-recession levels there was still
cause for optimism. The rise in the number of new and used cars
bought in April was 16% and 6% respectively.

 

• Only 11% of car buyers surveyed by vehicle
information provider HPI said they would take out finance through a
dealer. HPI adds that 56% of those looking for finance through
dealers said the rates were not competitive. The survey showed 52%
of respondents believed fewer finance options were available to
them.

 

• Nissan is to receive a government grant of £20.7m
to support a £420m investment to build a battery plant and electric
car factory in Sunderland. This follows confirmation from business
secretary Vince Cable that a loan guarantee of £360m to Ford will
go ahead.

 

• The rate of business insolvencies for the
automotive industry almost halved from 0.12% in May 2009 to 0.07%
in May 2010, according to the latest Insolvency and Late Payment
indices from Experian, the global information services company.

 

• A groundbreaking initiative targeting UK
dealer groups has been launched by BEN in a determined drive to
provide it with increased funding. Every dealer is being asked to
donate £1 from the sale of each of its cars sold through auction in
a new campaign entitled Dealers Backing BEN. It is estimated that
the largest retail groups could raise more than £500,000 a
year.