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Weakening pound hurting the car industry, says Vauxhall boss

The sudden drop in the value of the pound is causing headaches for UK carmakers and importers, squeezing the margins they can make on selling new cars.

Vauxhall chairman Duncan Aldred also believes it could also lead to price hikes in the showrooms.

"The weakness of the pound hurts. It has dropped quickly from 80p to the euro to 86p and while that might not sound much put that way, it has a profound effect. Prices may have to go up," said Aldred.

"We haven't made any changes yet but it is something we have to look at but we also have to make sure our products are still accessible. Another danger is that some companies will look at the UK market which is doing well versus the rest of Europe and decide to push more products through at discounted prices."

However, he believes the new car market in the UK will remain strong.

"It's tracking around the 2.2 million mark and that is good news. It is stable, not falling. Customers are embracing finance offers despite the economic situation and I believe this is because we now have a generation of buyers who are used to paying out monthly for what they want. Young people, for example, have grown up happily paying £50 a month for a mobile phone."



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Comments

  • Lynn George - 07/03/2013 16:52

    This wouldn't necessarily be an issue if Vauxhall still had a UK manfacturing base!

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    • Vauxhall employee - 08/03/2013 01:06

      @Lynn George - Ellesmere port make the Astra and Luton make the vans.

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    • Pat - 13/03/2013 12:13

      @Vauxhall employee - And how much more did vauxhall make before closing production plants.Chickens come home to roost perhaps

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  • Pa Broon - 07/03/2013 17:28

    Presumably that's only those cars being imported. A weaker pound will help those exporting, Nissan, Toyota, Honda, Landrover, Jaguar.

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  • RayCee - 07/03/2013 17:58

    I heartily agree with both comments so far. A weak pound is good for companies that have heavily invested in Britain.

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  • iceage - 07/03/2013 19:15

    Sounds like a weak excuse for continued losses at this troubled brand.

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