Christopher Macgowan Quotations

So far this year the market has suffered from two things; firstly a surge in demand for diesel cars distorting the market at the end of 2005 and secondly weaker consumer confidence.

We expect 2006 to be another tough year for the industry. Dealers will continue to fight hard for every sale.

There is little scope for significant price reductions, but we will be seeking to work with the government to ensure that U.K. customers continue to buy with confidence from U.K. dealers.

Export volumes continue to boost car production in the UK. Eight in every ten cars made in the UK in November is destined for export markets and we expect the 2005 total to reach record volumes and market share. Overall car output in 2005 should hit 1.6 million units, a little down on 2004 but still a strong performance.

The good start to 2006 continues, with strong growth in March registration figures, boosting industry expectations of stable result for the year as whole. 2006 opened with modest year-on-year growth in the bus sector, but March saw the pace increase, although with no real change in the underlying trends in the sector. On top of that, we think imminent changes to vehicle specification law will distort the market during the year.

Dealers will have to fight for every sale.

The new 2006 registration and some excellent deals have seen new buyers heading back to dealerships ... but 2006 will continue to be a challenge as we fight for every sale.

Improvements in efficiency, on top of strong export demand, have helped boost commercial vehicle production.

However, a reasonable March cannot mask the poor start to the year, and 2006 will continue to be a challenge for the industry as we fight for every sale.

Government must not burden automotive manufacturing in the UK off the European map. Manufacturers must have the confidence to develop their operations and government must help us meet the competitiveness challenge. That means a light regulatory touch and an integrated approach to regulation in environmental and transport policy.

Government has to embrace the concept of incentives in driving the market for the cleanest vehicles. Beating car buyers and commercial vehicle customers with tax penalties, while ignoring incentives, is absolutely counter-productive.

All of those volume manufacturers (are) struggling with those high-run production cars, and that is the part of the market that's causing them problems -- not because they are Ford, but because that part of the market is very competitive, in a middle-Europe man typical standard car.