SMMT make some alarming predications for the automotive industry 0

According to SMMT, automotive industry growth appears to be bleak for the next five years.

SMMT who stand for Society of Motor Manufacturers and Traders represent the automotive industry in the UK.

The Chief Executive of the company Paul Everitt has said that motorists are not confident enough in purchasing new vehicles that are made available. This is a major factor that needs to improve according if the UK’s automotive industry is to prosper.

Speaking at the Frankfurt Motor Show, he also predicted that the immensely successful car scrappage is unlikely to be revived. During the global economic crisis this particular scheme allowed the automotive industry growth to prosper, with many customers encouraged to purchase new cars. The scheme worked with car owners handing in their old car (if it is over 10 years old) to get £2000 taken off the price of a brand new car. It would certainly be a shame for many if the scheme is never to be revived as predicated by Paul Everitt. The fact that the previous Labour Government introduced the scheme rather the current Coalition adds substance to that.

The news may be a bit surprising to some. Earlier this year it was reported that car sales had increased compared to last year. The Frankfurt Motor Show itself displayed just how much car manufactures are looking forward to the future. Some models are breathtaking and have received tremendous praise. Looking at the motor show, you would assume that automotive industry growth is on the up.

Looking at the bigger picture, Paul Everitt has blamed the British economy failings in general as a reason for consumer hesitation when purchasing a new car. It would appear that the cost of living has got higher with wages staying still or rising only by a little bit. Expenditure has had to be revised by many families, with cuts on various essentials, including cars.

Keep in mind that this piece of news is not completely proven as of yet. Other automotive experts may even predict the opposite, with brilliant new cars being made that aim to adapt to future standards.

Jaguar Land Rover recently announced the creation of 750 jobs from a new plant in Wolverhampton. Vauxhall/Opel’s chief stated that their factories in the UK are doing especially well. The 500,000th Vivaro which was released from the Luton plant is a testament to that.

In terms of automotive industry growth for the future, it is safe to say that there are two sides to the story.

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