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Through a Glass darkly

13th January 2005
Page 69
Page 69, 13th January 2005 — Through a Glass darkly
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Keywords : Business / Finance

=allowing record new sales last year, unrealistic 2005 sales targets by nanufacturers could unbalance the used vehicle market.

Consolidation is the key for the new year for new sales targets to help maintain a buoyant used sector. George Alexander, lief editor of commercial vehicles for Glass's ;lade, believes the "future health of the new ad used commercial vehicle scene would be amaged if 2005 saw a return to unrealistic rojecfions for sales of new vans and trucks, 3ove what the domestic market could aturally absorb.

"Distress selling of new chassis, in a manner tat unbalances the market for late year stock. .eates several years of disappointing and Taticlprices for all the players," he warns. After a series of record monthly sales last !,ar 2005 has a lot to live up to in terms of new registrations.'The new van sector should continue to perform well during the first six months, says Alexander: "However,we expect the van market to lose some of its momentum as we pass through the summer, with September being the main barometer month that will point towards the full year's tally."

Glass's Guide expects the market below 3.5 tonnes to drop approximately 2% while the heavier divisions could drop by as much as 5%. But these figures should prove negligible."Should this early estimate prove to be close it would not reflect a weak market situation or poor sentiment," he suggests. "Such a modest reduction in registrations would still give an impressive total." •

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