SIMI PLEA FOR AID ‘WHEN IT’S OVER’
The impact of Covid-19 on car sales has been calamitous, all over the world. We knew there would be a drop in March sales, but 63% down compared to March last year is drastic, and sales will reduce to all but zero this month.
The figures from the Society of the Irish Motor Industry (SIMI) this week made for grim reading. New car registrations dropped to 6,174, versus the 16,687 in March 2019, and overall, car sales year to date are down 20.5% at 51,015, compared to 2019’s 64,126.
Used car imports also have fallen off a cliff, down by almost half for the month, and 35% for the year. They were being impacted anyway, because of early year gains in the exchange rate for sterling against the euro, and also by the new NOx tax that made older diesels in particular less attractive.
The industry hasn’t seen a storm like it since the 2008 financial crash and, as was the case then, it is hard to see how massive job losses can be avoided.
Brian Cooke, the director general of SIMI, said: ‘The health of our nation is the overriding priority. The motor industry will assist the State in any way we can during this pandemic. While showrooms, service and other activities within the industry are closed, members are available to assist in emergency call-out or delivery services. This will be vital in keeping essential and emergency services moving.
‘The motor industry and its employees, like so many industries, is feeling the devastating impact of Covid-19. Even before the crisis commenced, the new car market was in decline, and this fall has accelerated rapidly in the last fortnight with new car activity down nearly two-thirds on last year.
‘Whatever the duration of this crisis, once we emerge, we will need to see decisive and ambitious action from Government to protect the nearly 50,000 jobs in our sector.’
Though most of the United States still was not under lockdown for much of March, the impact on sales there also has been shocking, with carmakers reporting drops of between 37% and 50%.
While inventory everywhere is reasonably decent, most production lines have closed, meaning that there will be little respite even when all this is over.