The latest quarterly review of the European automotive sectors finds little to be positive about in the UK.

Published by White Clarke Automotive Solutions and the University of Buckingham, and subtitled When will Sustainable Economic Recovery Really Begin? it provides an analysis of the challenges facing the sector.

The latest report examines the European sector in overview and the UK marketplace in some detail. Topics include:
• Analysis of European New Car Registrations
• The Changing Car Parc – five year analysis of the principle players in the European motor industry
• The UK Economy
• Banking Crisis
• The UK Automotive Industry – time to revise forecasts?
• Car Parc – four major brand analysis, looking at implications
• Used Car Market – entering ‘the age of managed supply chain’
• Vehicle Manufacture – a more positive note

From almost every perspective, the news has been depressing, according to the study.

With a year-on-year downturn in new car sales post 2007 in Europe, despite expensive scrappage schemes, new car registrations fell to 13.6 million in 2011 – two million units below the five year average before the downturn.

While the impact of the first round of scrappage has flushed through the industry, as many predicted, the vehicles are not coming back for conventional replacement.

New car volumes continue to weaken in 1012 compared with the same period last year:
• Italy -19.9%
• Spain -8.5%
• France -13.4%
• Germany -0.6%
• UK +3.3%

A second weakening in the marketplace comes from vehicle mix, with the small car sector moving from 33% of sales to a market-leading 43%.

Growth in the small car segment means many units are imported or manufactured in Eastern Europe through growing production in the Czech Republic, Romania and Slovakia.

A further impact on the market, and therefore the economy, is the dramatic way in which LCV sales have dropped post banking crisis.

Given that the bulk of new LCVs are acquired by major operators at highly aggressive prices and then replaced relatively quickly, so supplying the used LCV market and enabling SMEs to acquire used vehicles. A serious and sustained shortage of used LCVs could even be detrimental to economic recovery if that recovery is to be driven by SMEs.

Pamela Halliday, sales director at White Clarke Automotive Solutions said: "As a voice in the automotive sector, we welcome this opportunity of working with the University of Buckingham, particularly with its focus on the changing economic dynamics that affect the sector.

"Some of the findings may be contentious within the wider automotive community, but the whole point is to foster discussion. As providers of rental systems, outsourced people and expertise, warranty and rental programmes, we constantly have to review change and potential change. We look forward to continuing work with Professor Cooke and his team."

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