Press Association
Saturday 4th July 2009
New car sales slumped again last month, dragging total sales for 2008 down 11.3% compared with 2007.
A total of 108,691 new cars were registered in December - 21.2% down on the December 2007 figure, the Society of Motor Manufacturers and Traders (SMMT) said.
Sales for the whole of 2008 totalled 2,131,795 - down from 2,404,007 in 2007, with the SMMT forecasting that this year will be considerably worse.
The December figures took the decline in sales for the last three months of 2008 to 27.2% and meant that the year-end total was the lowest annual figure since 1996.
The SMMT reckons sales will fall to 1.78 million in 2009 - the lowest annual total since 1992.
The December 2008 fall was the eighth successive monthly decline.
SMMT chief executive Paul Everitt said: "The global economic downturn, precipitated by the crisis in the international banking and finance sector, created unprecedented challenges for the UK automotive industry in 2008.
"The measures taken by the Government to support the banking sector and kick-start demand have been necessary, but are not yet sufficient to restore confidence. Further action to ease access to finance and credit across the economy is essential if long-term damage to valuable industrial capability is to be avoided.
"2009 will be another difficult year for the UK automotive industry with new vehicle registrations and production significantly reduced.
"The industry faces these challenges stronger and more resilient than in recent memory. The extraordinary circumstances we currently face mean that Government support will be required to take advantage of global economic growth when it returns."
