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Van market The light CV market, in particular the sub-E1,000

26th April 2007, Page 62
26th April 2007
Page 62
Page 62, 26th April 2007 — Van market The light CV market, in particular the sub-E1,000
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Which of the following most accurately describes the problem?

sector, is enjoying an unexpected surge. In general the van sector has continued in the same vein as last year, but George Alexander, CV editor for Glass's Guide, has highlighted a new trend—legal immigrants.

While overseas demand for trucks has been beneficial for heavy commercials, for lights it's a different story. For used vans, there was never going to be a credible export opportunity that would soak up problem stock, of which there was no shortage," says Alexander.

Too many perfectly serviceable, yet unsaleable used vans had the capacity to hobble sales prospects for van dealers over the coming years.

"Thankfully for the motor trade, if not for the long-term health of the UK, the government came up with a revolutionary solution," he says. "Instead of exporting used vans, they imported Eastern European plumbers, builders, electricians and roofers. With there now being a vast pool of artisan workers needing a cheap set of wheels to allow them to get on and work, this novel policy proved to be the perfect kick-start for sales of older vans."

It is unlikely the government planned to help the motor trade in this way. "For all the negative aspects of mass migration, some significant benefits for our industry have been generated by the economic growth of such selfemployed sectors that require a low price transport solution," says Alexander.

Reasons to be cheerful

+ Euro-5 incentive to free up Euro-3

stock

+ Conversions on the rise + Vans boosted by legal immigrants

Reasons to be sad

+ Long lead times to stifle replacement programmes + Ongoing problems with digital tachographs

Verdict It's a mixed bag for the used market, with the government playing a positive role on two fronts, but not enough hauliers being convinced to jump to new technology just yet.

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