THE LATEST car sales data heralded further production cuts in the industry and a call for the reintroduction of a scrappage scheme. New car registrations in Ireland this year are down 18.6 per cent, with 151,426 registered by the end of November compared to 186,096 in the same period in 2007, writes Michael McAleer, Motoring Editor.
The Society for the Irish Motor Industry (SIMI) is calling for the introduction of a scrappage scheme. SIMI said a scrappage scheme would help remove high-polluting vehicles from our roads and would assist the Government in achieving its target of reducing Ireland's carbon emissions by 20 per cent by 2020.
"Incentivising consumers to trade in their car if over 10 years old against a new low-emissions model will not only boost consumer confidence and benefit the industry but will provide the Government with increased revenue," it stated.
Meanwhile in Germany, Europe's largest car market, sales dropped 17.6 per cent in November from a year ago, the VDIK association of foreign carmakers said yesterday, adding to a string of similar stories across the Continent. It was the same story in Africa's top economy, South Africa, where new vehicle sales plunged 28.3 per cent in the month.
In response to the downturn, Toyota, the world's biggest car manufacturer, and Tata Motors, India's biggest, announced new production cuts to avoid a build-up of unsold stock.
Toyota is halting production at assembly lines in two factories in Japan for two days later this month, cutting production primarily of its premium Lexus marque. Toyota also said it would trim bonuses for nearly 9,000 of its managers.
Tata said it was suspending production at its commercial vehicle plant in Pune for three days from December 5th, while local rival Mahindra Mahindra, India's top maker of utility vehicles and tractors, said its November sales slumped 39 per cent.
Sweden's Volvo, the world's number-two truck maker, said its order intake had dropped substantially in several markets and it would make cuts in production mostly in December to adapt to the fall.
In the US later this week, the country's top automakers will again seek to convince Congress to approve a bailout to help them survive the crisis but politicians remain wary of throwing more taxpayers' cash around after the controversial government rescue of financial services firms.
Companies supplying the car industry are also showing cracks.