Was there a consistent motoring message from Darling yesterday? Is the motor industry important to the UK economy? Are we still on target for an eco-friendly reduction in CO2 emissions? And are we still out to persecute the motorist?
I’m not sure what Mr Darling really, really wants on any of these counts after yesterday’s Budget.
Clearly the car industry wanted more help and only time will tell if a 2.5% drop in a new car’s selling price will encourage more sales. My personal opinion is that it isn’t enough because few foxy lady drivers pay listed price anyway and if they can’t afford the fantastic discounts on offer now, what difference will a relatively small pro rata’d proportion of the remaining VAT make.
We’ve all seen the rows and rows of unwanted new cars on TV news so it’s clear to me, and therefore presumably most other women drivers, that there will be massive discounts to come, if only to mitigate the opportunity cost of the long term storage predicted.
Other than that, let’s quantify the bigger picture, if private new car sales don’t pick up. What is at risk is the UK motor industry; no less than 8% of our economy, valued at £200bn a year, employing 200,000 individuals in car production and a further 580,000 in sales, servicing, refuelling, maintenance and other motoring-related roles. Think of them, their families and the economic multiplier effect on the rest of us, should the industry endure further job losses; more car dealerships and some manufacturers may disappear forever. This is distinctly possible without someone in high places batting for them (whilst waiting to follow the US lead).
Then there is the fuel duty clobbering motorists – this has been raised permanently by 2.5% and negates the temporary cut in VAT. If you then project this fuel tax from 1 December 2008 to April 2010 it amounts to a 6p surplus per litre bought. Every motorist is affected by this.
Yet if you drive a high polluting car (as many car fleet drivers do) – the VED increase is capped at £5 next year and £30 in 2010. And road building schemes are to be advanced to create jobs as in America.
Where is the consistency of the green motoring message here?
I am seriously worried for any business selling cars without a healthy aftersales book of customers. All dealerships have heavy overheads (too heavy before let alone in a recession). I am less concerned about those who actively promote their car servicing, MOT and repair work because this is where the real opportunity lies for those that get their competitive act together ahead of others, recognising that so many motorists need garage services, many for longer than they expected, having postponed buying new.
Which reminds me of a joke told at an event called Marketing in a Recession, organised by the Sussex branch of the Chartered Institute of Marketing CIM Sussex). Two trappers were caught in a heavy snowstorm, allegedly, and knew that this was grizzly bear country. One of them stopped to change his heavy snowboots for trainers which he had in his backpack. His friend said ‘You’re wasting your time – you’ll never out-run a bear’. His reply was ‘I don’t have to, I only have to out-run you.’ Thank you Peter Martin for this one – a good point well made.
As a related aside – I find it sad that so many businesses think that a recession is the time to cut back on marketing expenditure with so much to be gained by being one of the business survivors.
FOXY Steph
www.foxychoice.com – where forward thinking garages and dealers promote their car servicing, MOT and car repair services to women drivers
www.foxyladydrivers.com where foxy female motorists know they’ll save money, run safer cars and get a better, female friendly motoring deal for a change
