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The automotive industry has reacted positively the news that the Bank of England has cut interest rates by one percentage point to their lowest level in more than half a century.
Rates were trimmed to 2 per cent to their joint lowest level as the bank moved to help the slowing economy, which included new car sales falling for a seventh successive month in November.
“The Bank of England's decision to further reduce the interest rate is positive news for consumers and business but it is vital that the saving is passed on to restore confidence in the market place,” said Sue Robinson, director of the Retail Motor Industry Federation (RMIF).
“Consumers and business will feel more confident in the economy once they feel the effect of a lower cost of borrowing.”
Sales of electric cars are down by a huge 58 per cent and the Nice Car Company, one of two electric car distributors in London, has gone into administration, it has been announced.
Just 156 electric cars were sold between January and October this year, compared with 374 for the same period last year, according to consumer website www.cleangreencars.co.uk
Nice Car Company was set up in 2006 and had been selling the all-electric Aixam Mega. It also planned to bring in a range of new electric models, including a two-seater and MPV.
"While volumes are still tiny, any drop in electric car sales will come as a shock to most people," said Richard Bremner, editor of www.cleangreencars.co.uk "Perhaps the market for quirky electric vehicles like the Mega City and G-Wiz have had their day. Buyers could be holding off for cars from mainstream manufacturers, although they may still have years to wait before mass production is a reality."
The economic slowdown is continuing to hit new car sales hard according to the latest figures.
A total of 100,333 of new vehicles were registered last month - a huge 36.8% fall on the November 2007 figure, the Society of Motor Manufacturers and Traders (SMMT) announced.
The big decrease followed similar large falls in sales in the three previous months.
The November figures took the year-to-date total to 2,023,104 - a 10.7% drop on the January-November 2007 figure.
Although diesel sales achieved a record high of 47.0% in November, private sales of all vehicles accounted for just 45.1% of the market.
SMMT chief executive Paul Everitt said: "November has been another difficult month for the motor industry and while some consumers may have delayed their purchases to take advantage of the recent VAT reductions, overall demand continues to fall.
"Urgent action is now required to ease access to credit and finance, both to support consumers and meet the cash-flow needs of the industry."
Mazda has taken the wraps off the all-new Mazda3 five-door hatchback at the Bologna motor show in Italy.
Sporting a radical, stylish makeover, the five-door hatch clearly intends to take the challenge to it’s formidable rivals, the VW Golf and Ford Focus.
The new Mazda 3 will get a range of engines chosen specifically for the European market. Customers will get the option of a 1.6-litre turbodiesel, 1.6 and 2.0-litre petrol engines, or the new 2.2-litre turbodiesel engine first seen in the Mazda 6.
The new 2.2-litre turbodiesel will be available in two states of tune. One version will produce 148bhp, with a more powerful 182bhp model also available. Both engines will be cleaner and more economical than the outgoing 2.0-litre diesel unit.
Mazda recently unveiled a 4-door saloon version of the new 3 at the LA motor show. Both saloon and hatchback versions get a redesigned grille and a reworked chassis from the previous-generation 3, as well as a heavily redesigned interior.
Mazda also claims the new 3, which...
The new generation Volkswagen Golf Plus has been launched at the Bologna motor show ahead of its arrival in showrooms next spring.
This spacious version of the best-selling Golf adopts most of the standard car’s lower-output engines and powertrains.
The most popular models are expected to be the 121bhp 1.4-litre petrol, which returns 44mpg, and the 2.0-litre diesel, which returns 55.4mpg. Six-speed manual and DSG ’boxes will be available.
Exterior modifications include a redesigned rear bumper and LED rear lights. There’s also a choice of new wheels, including 18-inch Bilbao alloys designed by Volkswagen Individual.
The Golf Plus’s cabin is intended to be more comfortable than the standard car’s, with a premium-feel interior and higher-quality upholstery.
Volkswagen is also offering Park Assist as an option. This automated parking system manoeuvres the car into a parking space with minimal input from the driver.
Prices and specifications, which will be announced nearer to the UK on-sale date, are...
BMW's boss Norbert Reithofer has described the current global financial downturn as "the worst crisis BMW has faced in its history".
Allied to the slow sales, it is the German giant's reliance on leasing that has put it in a very vulnerable position and the company are expected to lay off up to 8,000 workers worldwide.
As sales of new cars continue to slow down, other car makers that had seemed in a strong position to weather the global economic storm have also publicly admitted a 'crisis'.
Martin Winterkorn, boss of Volkswagen, told reporters: "We have never before seen this kind of crisis" adding that "difficult cuts" maybe unavoidable.
Toyota's vice president Mitsuo Kinoshita described the situations as “an emergency of a magnitude we have never seen before."
Honda has also admitted that it will be "very difficult" to meets its full-year profit forecast and is scaling back production by some 40,000 units in Japan.
The Vauxhall Corsa has been voted Britain's Training Car of the Year for the fourth consecutive time!
The award is administered by adiNEWS, one of the leading publications in the driving tuition industry. This year, 43.9% of the readers who voted named the Corsa as their favourite car.
The environmentally-friendly Corsa 1.3 CDTi ecoFLEX model received most of the votes because of its tax-saving C02 emissions figure of under 120g/km.
The Corsa also gained marks for low insurance, road tax and maintenance costs.
Andy Gilson, Vauxhall's Marketing Director said: “We're delighted that ADI has awarded Corsa Training Car of the Year for the fourth year running. This award is further proof of the Corsa's ease of use for novice drivers, as well as being a cost-effective business car for driving instructors.”
The decrease in VAT is already having an effect on car prices, with Toyota and Lexus announcing that their list prices will now take into account the new 15 per cent rate from December.
Model pricings, optional extras, delivery charges and number plates will all fall in line with the reduction, meaning lower prices for new car buyers.
Toyota states that it's new IQ model will fall by £240 to a £9,295 starting price, while the RAV-4 drops by £425 to £19,620 for the 2.0 VVT-i manual.
Lexus customers will also benefit, with the revised IS220d SE priced at £22,015 compared with £23,192 previously.
There's also a £768 reduction in the price of an RX400h, down to £35,505.
Volkswagen is fast-tracking development of an affordable new two-seat city car which is set to go head-to-head with the Smart ForTwo and Toyota iQ.
The three-door hatchback could cost as little as £6000 when it goes on sale in the UK in 2011 and will return a class-leading 141mpg in its most economical form, while emitting less than 60g/km of CO2.
The non-hybrid drive is strongly tipped to be called Chico after a VW concept car from 1991, and will become the entry-level VW, below the forthcoming VW Up!.
The new Volkswagen will use a new 1.2-litre four-cylinder direct-injection petrol unit with a cylinder shutdown device that allows it to run on just two cylinders. It will be joined by a 1.2-litre three-cylinder common-rail diesel, which will be introduced in next year’s new Polo.
Stop-start technology, regenerative braking and low rolling resistance tyres will be standard features which also contribute to the Chico’s extraordinary fuel economy.
The drop in VAT to 15 per cent - announced by chancellor Alistair Darling in his pre-budget report - could see buyers of new and used cars coming back into showrooms, it has been claimed.
According to the Retail Motor Industry Federation (RMIF), the reduction will see the price of vehicles fall.
Director Sue Robinson said: "The VAT drop will also have an impact on the prices of thousands of other consumer goods and services, leaving cash-strapped households with more money to spend."
She added this should help to restore consumer confidence which is vital in improving the state of the economy.
Before Mr Darling revealed his pre-budget report, RMIF had been calling for VAT to be reduced to 12.5 per cent.
Meanwhile, Paul Everitt, SMMT (Society of Motor Manufacturers and Traders ) chief executive, said the pre-Budget report would lift consumer confidence and "kick-start responsible spending" but called for credit and finance to be freed up to allow businesses to take advantage of the changes.