The cost of technology development in new cars, and the higher resultant cost to the consumer, may mean some hold onto their cars longer in future.
Andrew Marsh, of Auto Industry Consultancy, said the technology required to meet emissions regulationsin Europe has cost a vast amount of money.
This has increased the base cost of building cars, and may make it more likely that cars are kept for longer, the former Thatcham executive told the IMI's Autumn Representative Member Assembly at Crewe.
He said developing an all-new model can cost 2.5bn euros, so may be hard for some manufacturers to justify.
As editor, Tim is responsible for the media content, planning and production of AM's multiple channels (AM print and digital magazines, website, social media and contributing to our events planning). He interviews and writes about as many franchised dealer groups and UK divisions of motor manufacturers as possible, to explore the issues facing UK motor retail and understand what solutions dealers and suppliers are using to overcome these.
Dogsbody - 28/11/2012 17:36
I am a bit confused by this article. Does it mean the consumer will keep their cars longer or does it mean that manufacturers will extend the life cycle of models before replacement. I suspect it is the latter that the article is trying to say.