Just when you thought the UK van industry was starting to get up from the repeated blows received during this latest downturn along comes the old enemy the Euro to stick the boot in again.
By the end of 2008 the Pound had lost 25% of its value against the Euro, meaning £1 equates to around 1 Euro. Whilst this is great for exporters it is not so good for importers. Most of the vans sold in this country are produced in mainland Europe and then imported into the UK.
This change in exchange rates is now starting to filter through to the UK van market and the manufacturers are now going to have to pass on their increased costs to the UK dealers.
Over the last week every manufacturer has annouced a price hike. Not exactly what we need with the economy in tatters.
So the advise at the moment is go for vehicles in stock and save yourself a considerable amount of money.
vanblogger
Monday, 30 March 2009
Tuesday, 27 January 2009
Its the end of the world as we know it - again
So thats it. "Were all doomed, doomed I tell ye" as Private Frazer would say in Dads army. The media has decided that the four horses of the apocalypse - Bad Credit - Lack of confidence - Globalisation and Greed are knocking at the door and weve had it.
Well maybe thats not the case.
The realignment will happen, people will start to pay the credit cards back and slowly but surely things will start to improve. Job prospects will get better and the world will not end.
Right OK rant over. Welcome to my new blog, its all about commercial vehicles (read on its not as bad as it sounds). Every week I will update the blog with funny articles and stories from the commercial vehicle world (yes there are some).
Todays news
Mandelson offers £2.3Bn rescue package to the UK motor industry.
(and Manchester City said they would give at least £4.6Bn.)
Van and car makers are set to receive a boost from today as Peter Mandelson outlined government support for the UK motor industry.
The goverment plan has two aims: keep the ailing industry alive, and direct manufactures to produce greener vehicles.
The measures will unlock loans of up to £1.3Bn from the European Investment Bank, as well as a further £1bn in UK government loans to fund investment in greener technology.
The Department of Innovation, Universities and Skills has also stated today it intends to increase its funding from £65m to £100m to help train car workers.
The package needs approval from the European Commision before it can take effect, but this shouldnt be a problem for the former European commisioner Lord Mandelson.
In the Commons the Shadow Business Secretary Ken Clarke said the proposals were "pretty small beer" coming from a man who is only used to being served pints of real beer.
The question is will it work and the answer is it may do some good. The main problem for the UK car and van market is still over supply. There are too many vehicles being produced with not enough people to buy them. Added to this the reduced amount of credit available to consumers is not helping.
It is probably the best time ever to buy a vehicle though as the manufactures seek to rapidly reduce unsold stock.
Germany recently introduced an incentive scheme to buy a newer motor.
Any German who scraps a vehicle over 9 years old and replaces it with a new or nearly new vehicle receives 2,500 Euros towards the cost.
As a result, car dealerships have reported a surge in interest and are forcasting 200,000 extra sales.
Not a bad idea when you think about it.
Happy Vanning,
Van Blogger
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