New car sales slump by a third
Thursday 4th December 2008, 4:39PM GMT.
The November fall was the steepest since June 1980, the Society of Motor Manufacturers and Traders (SMMT) said.
Just 100,333 new cars were registered last month, the group said.
Those who are buying are changing their habits, with small cars showing an improved market share and sales of diesels rising to a record 47 per cent over the month.
“November has been another difficult month for the motor industry and whilst some consumers may have delayed their purchases to take advantage of the recent VAT reductions, overall demand continues to fall,” said Paul Everitt, SMMT chief executive.
Luxury car brands took a hammering, with sales of both Porsche and Mercedes-Benz falling 57 per cent, while Aston Martin saw a 73 per cent decline.
A slump in consumer confidence combined with a lack of credit is hitting the sector hard.
Many manufacturers are laying off workers, with Aston Martin and Rolls Royce both announcing job cuts recently. Honda is to close its doors for two months as demand dives.
The SMMT is calling on the government to bail out the car industry by extending its help to finance firms as well as banks and offer a state-backed credit facility.
Last week, representatives from car manufacturers met with new business secretary Lord Mandelson, asking for government support.
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