New car sales have dropped nearly 37% since last November, with Edinburgh car dealerships one of the the many affected.
According to the Society of Motor Manufacturers and Traders (SMMT), 100,333 new cars were registered in November, whilst private car sales was down 45% in November, which haven’t been as low since the early 1980’s.
This news follows the decision by Honda close its UK factory in Swindon for the duration of February and March next year, whilst BMW is closing its Oxford factory, which produces the Mini following a poor year.
As America’s car manufacturers Ford, Chrysler and General Motors continued to lobby for a $34 billion (£22.9 billion) bail-out many commentators are suggesting the car industry may be the next to fall foul of the credit crunch as financial tension caused by dropping sales and increasing production costs.
SMMT chief executive Paul Everitt said: “While some consumers may have delayed their purchases to take advantage of the recent VAT reductions, overall demand continues to fall.
He added: “Urgent action is required to ease access to credit and finance, both to support consumers and meet the cash-flow needs of the industry.”