CALL FOR SCRAPPAGE SCHEME AS CAR SALES CONTINUE TO SLOW - SIMI, the Society of the Irish Motor Industry, says the number of new cars registered in September was almost 35% lower, at 2,259, than the same month last year. Sales since January are 63% down on last year - 55,000 versus 149,000 last year.
SIMI's financial director Brian Cooke says the September figures present a very stark picture of what is happening in the Irish motor industry. But he says what is even more bleak is the translation of the fall in sales into human terms - jobs. He says that jobs in the sector have gone from 45,000 in January 2008 to 35,000 by the end of June this year. In the short term, Mr Cooke says that between another 5,000 and 8,000 jobs are in danger. He points out that there is a clear correlation between new car sales and employment in the sector. He says that not all the jobs are in sales sector, some are in the servicing end of the business.
Mr Cooke says that car ownership levels in Ireland, despite the big economic growth of the previous decade, are still lower than most of our European counterparts. He says that it is now imperative that the Government establishes a scrappage scheme in order to save jobs and the industry by the start of next year. He says that once the NAMA gets up and running and the banking system starts working again, the Government can start focusing on other areas of the economy.
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MORNING BRIEFS - US car sales fell 235 in September after a short lived US government sponsored 'Cash for Clunkers' rebate scheme, for new car buyers scrapping gas guzzlers came to an end. The rebate scheme is part of a $3 billion programme to support car sales.
*** There is a prediction out this morning on the number of companies declared insolvent hitting the 1,400 mark by the end of the year. So far this year the actual number of companies not able to pay their debts stands at 1,094. This is a 127% increase on last year, according to research from InsolvencyJournal.ie.
*** There is evidence of deal making out there - listed services group DCC yesterday said it has bought UK-based oil distribution firm Bayford Oil for almost 25 million euro. Bayford operates mainly in the north of England.
*** On the currency markets, the euro is worth $1.4554 and 91. 41 pence sterling.
