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The exchange rate between the pound and the euro is

10th December 2009
Page 16
Page 16, 10th December 2009 — The exchange rate between the pound and the euro is
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Which of the following most accurately describes the problem?

a cause of great concern for the truck-makers. Sam Whittaker of Mercedes-Benz says it "is the biggest issue for every manufacturer''.

And it is and will be an issue for any operator refleeting; MAN's Des Evans warns: This market is going to [have to] stomach a 35% to 40% increase in the cost of new equipment."

DAF's Tony Pain highlights the inevitable Impact: "Trucks will become more expensive, [which] will stall the market. But that means used prices will come back."

Scania's Martin Hay is concerned there is still worse to come: "I believe there's more price increases for new vehicles to come because we still haven't seen the full effect of the devaluation of the pound."

And that not the only worry: Volvo's Ian Mitchell highlights the threat of longer lead times. "Lead times could depend on which country comes out of recession first. If the Eastern European truck market recovers first, then a subsequent recovery in UK demand rfor trucks] could face longer lead times as a result."


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