UK Car Market Round Up – 12 months to June 2010

Half-way through 2010 and there are signs that the UK Retail Motor Market is entering the recovery phase. Those in the ‘budget’ segment saw strong sales in 2009, but the last quarter of 2009 and Q1 2010 are showing gains for both mainstream and premium market retailers. There are downside risks – tax rises, VAT increase, end of Scrappage Scheme, reduced government investment, to name just a few. However, given the average historical length of UK recessions – 4 years – and the new management, reduced working capital and indebtedness of many retail groups, the future appears brighter than at any time since 2007. The only serious concern hangs over Pendragon who still find profits elusive. The recent resignation of long-time chairman, Sir Nigel Rudd, may signal the removal of other senior staff as has been long expected.

Read more