Ford’s UK chief sees vehicle sales falling in Britain this year and next unless consumer credit availability is relaxed.
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Chairman Roelant de Waard told Reuters he expected overall sales to fall 8% year on year in 2008 and, though he did not see demand falling below current levels, that would result in another year on year drop next year.
“We assume demand will stay where it presently is unless something is done … the affordability and availability of consumer credit has to improve,” he said in an interview with the news agency, adding that taking out a loan was the most common way to buy a car.
But he would not say exactly what should be done to ease the crisis, such as lowering interest rates. “Confidence is what is needed most.”
De Waard said the global credit crisis was the biggest factor in the downturn of the vehicle sales market, ahead of high fuel costs.
As reported elsewhere on just-auto today, the crunch has has led to an increase in dealer closures in the US, including the nation’s largest Chevrolet chain.
“We believe we have addressed the issue of fuel prices with new technology, making cars more fuel efficient,” De Waard told the news agency.
He added Ford had launched new finance products for both consumer and business customers to help counter less favourable terms from banks.
Though he expected falling demand to hit Ford sales, he nonetheless hoped group UK market share would remain about 16%. It sold 450,000 cars and vans here in the UK in 2007.
Ford brand sales reached 9,199 and 14.55% market share in August compared with 9,697 and 12.49% in 2007, according to SMMT data. Year to date sales were 219,824 (15.01% share) versus 225,405 (14.82%) the previous year.
