Car sale firms fear losing trade to England

THE biggest car dealers in Wales fear they are about to lose trade to their English counterparts, with the motor retail trade set to open across the border while it remains closed at home.

Nine motor dealerships have signed a letter to First Minister Mark Drakeford warning him the industry is being exposed to “considerable harm”, as a result of the loosening of coronavirus restrictions in England, ahead of those in Wales.

The retail motor industry in Wales is said to have a combined turnover of more than £3bn, and employs more than 20,000 in sales alone.

According to traders who have signed the letter, they could lose more than £6.3m over the next month, with industry experts expecting values of used cars, which are by nature depreciating assets, set to drop by 3%. They say the figure for the whole industry in Wales is likely to be greater.

The letter has been signed by Days Motor Group, Griffin Mill Garages, Hutching’, Jeff White Motors, Mon Motors, Nathaniel Car Sales, Ron Skinner & Sons, Trade Centre Wales and White Dove Garages.

It says: “In allowing retail motor trade to open in England and not Wales you have exposed the whole sector in Wales to considerable harm.

“Whilst support has been forthcoming to support employees and business’ with immediate cash flow injections, this latest action of disparity leaves us open to much bigger risks”.

It adds: “Consumers change their car on average once every four years, during the next three weeks countless customers will transact with our English counterparts, ending their relationships with local Welsh dealers”.

Each of the businesses to have backed the message say they have spent around £9,000 in preparation of reopening, with fresh signage, PPE and social distancing meausures.

The letter signs off: “We applaud and support the efforts made to protect the health and well-being of everyone in Wales.

“However, we truly believe you have underestimated the professionalism and commitment in the retail motor trade.

“We are confident businesses can open in a safe and controlled manner.

“The retail sector as a whole is facing its biggest challenge in living memory, these recent actions have further increased the pressure we already face and put Welsh jobs at risk”.