23.02.2009

New car registrations continue to plummet

New car registrations for the first 18 days of February are down 61.6 per cent compared to the same period last, the motor industry heard last. Those who attended the Society of the Irish Motor Industry’s annual gathering in Dublin heard that new car registrations to date are down 65.3 per cent to 21,044 units compared with 60,687 units for the same period last year.

Paul Flanagan, President of the Society of the Irish Motor Industry addressed the greatly reduced number of members attending. The mood was, as would be expected from members of an industry in crisis, somber and many expressed their concern, anxiety and frustration at the continued lack of action on the part of the government to prevent the industry’s collapse. Flanagan highlighted several anomalies in terms of the legislation and laws within which the motor industry functions compared to other businesses.

He pointed out that the motor industry is the only sector that has to return VAT on losses. No other sector or industry in the country suffers this draconian tax, he said. Flanagan said there is an ongoing problem of illegal imports and that thousands of drivers are escaping their obligation to pay VRT. On the other hand motor dealers are living up to their obligations and collecting VAT and VRT for the Revenue Commissioners. He also raised the issue of the black economy including illegal roadside trading which is still not policed and is going undeterred nationwide whilst SIMI members continue to pay high council taxes.

Flanagan’s speech to those attending the event highlighted several proposals from the recent SIMI Rescue Package and warned the government that if actions to revitalise or at least assist the motor industry were not implemented within weeks that the effects would be catastrophic, not only for the industry and its 45,000 employees but for the Government too.

He highlighted the positives that remain in the motor industry including lower fuel costs, lower interest rates and the reduction in new and used car prices. He stated that When the government step up and implement the changes necessary for the industry’s survival, SIMI members will be well positioned to continue to offer value, piece of mind and a high level of service.

Both the AA and SIMI Car History Check have, in recent weeks, released their findings on the alarming number of cars on our roads with dubious histories. “The standard of car on our roads cannot be compromised because of the increased pressure for cheaper vehicles and the importation of unchecked imports and SIMI are determined to uphold the standards set by the organization over 40years ago,” he commented.

In summing up, Flanagan stated that he and SIMI understood the frustration of the motor industry and that the member’s demands for strong action had not gone unheard. He assured his members that as the representative body for the motor industry in Ireland they were assessing their options on a day by day basis and reiterated the point that the government cannot afford to bury its head in the sand, action must be taken now.


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