Comment on the Society of Motor Manufacturers and Traders (SMMT)

new car registration figures for September 2008

Keith Parry, Head of Motor Trade, Barclays Commercial Bank said: "The market is facing the full impact of the current economic situation with new car registrations in the important month of September more than 20 per cent lower than last year.

The trends seen earlier in the year continue to have an impact as the popularity of larger vehicles and 4x4's wanes and more cost effective fuel efficient vehicles fare significantly better, appealing to a more frugal public in the current economic climate.

"Many dealers will not have achieved their budget for the key period of September, and with a significant drop in sales figures against last year they will be facing a challenging winter with their key focus having to remain on turning stock fast, controlling costs and cash flow.

"Key figures in the industry should keep cool heads, remain focussed and supportive.

Manufacturers themselves must play their part too over the coming months to ensure that their main dealer partners remain profitable and adequately capitalised.

A strong dealer network will remain critical to their future.

"Despite the potential short-term pain, motor retail remains a major and important backbone of the UK economy.".

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