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'Specific action needed' to boost commercial vehicle market

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'Specific action needed' to boost commercial vehicle market

Monday, 28/9/2009 12:05
UK logistics firms and transport planning bosses are unlikely to return to the commercial vehicles market until confidence begins to pick up, an expert has claimed.

According to the Society of Motor Manufacturers and Traders' latest production figures, output of vans and HGVs fell by more than 48 per cent during August.

While this marked the smallest drop of the year so far, the group said any recovery in the number of vehicles produced and sold is still some way off.

Paul Everitt, chief executive of the organisation, claimed that although the government's scrappage scheme has had a major impact on car production, the commercial vehicle market is still lacking support.

"The continued fall in commercial vehicle output reflects ongoing weakness in the market," he commented.

"Specific action is needed to address business confidence and encourage investment in new business vehicles."

The call follows a similar plea by the European Automobile Manufacturers' Association last week after its latest registrations data showed a 37 per cent fall in new vehicle sales year-on-year.

With no immediate signs of improvement, the group claimed that Europe cannot afford to "stand aside" and let the commercial vehicle sector be at risk.

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