Automotive Talk 2 Way

The figures for July august saw another 27% drop in production of cars compared to the same time last year. The news reports that is still 2% better last month suggesting that the scrappage scheme is working, but many others have their doubts.
After all the high street saw rises is sakes during July and there was a huge increase in Mortgage acceptance, so many believe this sight 2% damage limitation figure is just more people are a bit more confident in the economy.

The figure relating to UK cars being manufactured however does not tell the whole picture as sales could be up much more if it is found that the consumer is choosing to buy cars built outside the UK, for example in Korea. We also have to take into account that there are airfields full of new cars up and down the UK, so at this time figures for manufacturing may have little reference to cars being sold, until the stock pile of cars fall in numbers.

It is also worth noting that 50% of new cars tend to be leased and as the scrappage scheme does include lease cars within its conditions you again have to wonder what impact the scrappage scheme is really having. As no official figures seem to be released with a yes it is working or no it is no, we will keep having to guess.