12,000 Irish Motor Industry jobs ‘under threat’


Economist Jim Power
The Quarterly Motor Industry Review for Q2 of 2019, released by The Society of the Irish Motor Industry (SIMI), warns that 12,000 Motor Industry jobs here are under threat if the Government fails to adjust VRT bands in the October Budget, writes Trish Whelan. 

The report, composed by economist Jim Power, makes for stark reading. 

Despite the economy performing strongly, the environment for new car sales continues to remain very challenging with new car registrations down 7.4pc (80,712 units) on the back of a rise in used car imports which are up 2.4pc this year (53,119).

Since the announcement of Brexit, both new cars and commercial registrations continue to drop with the exception of electric cars and used car imports. 

External threats such as Brexit uncertainty, greater consumer caution and the ongoing growth of used imports continue to undermine new car sales.

Another factor dampening demand was the increase in the VRT on new cars in last year’s Budget arising from the fact that no allowance was made by the Irish authorities for the first step in the move to the new WLTP testing regime.

Jim Power warned that “If the Government doesn’t adjust VRT bands in Budget 2020 to take account of the WLTP changes, the average price of a new car could rise by at least €2,500.” He added that the price for the more popular mid-range model could rise significantly more and such price increases would have a devastating impact on new car sales.”

He believes the new car market could decline from 125,557 in 2018 to around 115,500 for 2019 and that 2020 could see a decline in new car sales of over 9pc to 105,000 units.

Power further warns “Failure to adjust VRT bands could see the new car market decline to 75,000 which would have a devastating impact on many businesses that barely survived the last recession. This would cost thousands of jobs in towns and cities around the country and would have a very negative impact on the Exchequer revenues. The Motor Industry is a high-risk scenario at the moment and policy makers need to be aware of the risks.”

The report highlights that the surge in used imports is continuing to displace new car sales and is increasing the market penetration of diesel cars in the fleet while also leading to the importation of older, less environmentally friendly cars.



Komentar

Posting Komentar

Postingan populer dari blog ini

Opel’s Vivaro goes electric

Gambar
Opel continues its electrification offensive with the Vivaro van to also be offered in a pure battery electric version as of 2020, writes Trish Whelan . The Vivaro-e extends Opel’s range of particularly efficient light commercial vehicles. Customers can then choose between two sizes of battery, depending on their needs: a 50kWh battery for a range of up to 200kms or a 75kWh battery for up to 300km (according to WLTP). With emission-free deliveries becoming increasingly important in urban areas, the demand for purely electric light commercial vehicles will increase accordingly.   The Vivaro-e is based on the group’s variable MP2 platform which enables the use of conventional as well as electrified powertrains. The Opel Vivaro No. 3 is available in three lengths instead of two (4.60 metres, 4.95m and 5.30m); has a 200kg higher payload of up to 1,400kgs and can pull half a ton more (trailer load up to 2,500kg). Most versions of the new Vivaro are also o...
Baca selengkapnya

Alcosense Lite 2 breathalyser for ‘morning after’

Gambar
Christmas is the season of office parties and catching up and celebrating with friends and family. However, over-indulging the night before can mean it is easy to have alcohol in your system the next morning. Over 1,000 arrests for drink driving were made over the Christmas period last year and the new laws which came into effect over a year ago mean that first-time drink-driving offenders will be automatically banned from driving for three months if caught with between 50 - 80 milligrams of alcohol per 100 millilitres of blood, equivalent to 0.22 - 0.35 milligrams of alcohol per litre of breath. Previously, drivers caught at these levels received three penalty points and a fine … but no driving ban. Now you can test yourself the next morning with the AlcoSense Lite 2 digital personal breathalyser. Designed in the UK by racing driver and businessman Hunter Abbott, it gives you clear results in seconds. All you need for a reading is to turn the unit on, wait for ...
Baca selengkapnya

Drogheda Car Sales partner with Suzuki in Louth/Meath

Gambar
Drogheda Car Sales in Co Louth will be opening the doors to their newly-built standalone state-of-the-art Suzuki showroom in January 2020, writes Trish Whelan . The spacious six-car dealership in Drogheda, nearing completion after a five-month project, follows the recent appointment of the family-owed and award-winning Doran Motors Carrickmacross business to operate the franchise in this region. Drogheda Car Sales Ltd is in the process of building its new Suzuki showroom next door to its existing Hyundai showroom on the North Road in Drogheda where it has been in operation since 2012. During the final stages of the build, customers can continue to purchase a new Suzuki or have their car maintained at the existing temporary facility on the North Road. Peter Doran, Dealer Principal at Drogheda Car Sales Ltd said Suzuki has a long nd well-established presence in Counties Louth and Meath and we are pleased to be creating a new retail destination that will show off t...
Baca selengkapnya