AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

2 lveco's Thorneycroft-Smith predicts another

18th January 2007
Page 23
Page 23, 18th January 2007 — 2 lveco's Thorneycroft-Smith predicts another
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

tough year —"and that's not being pessimistic, it's

being realistic". Bruce Allison at Renault says: "In recent years the UK market has been characterised by a small growth in the total running park of vehicles over 3.5 tonnes to the current level of around 460,000. Based upon an average eight-year replacement cycle this would generate in broad terms a market up to but no bigger than 60,000 units per annum. This peak was almost reached in 2005 and we would anticipate that this kind of level is attainable in the future... but not in 2007.

"Our own forecast of the market for 2007 above 3.5 tonnes is 52,000 units. We would expect the seasonally adjusted annualised rate to be significantly below that in the first quarter but to pick up from April onwards, to finish up with a full-year figure of 52,000 (down 6.5% over 2006)."

Oaf's Stuart Hunt believes first-quarter sales might still be dampened by the effects of dig itachs and Euro-4/5 but expects the market to bounce back. He predicts sales of up to 52,000 units this year, adding: "The relatively stable state of the world economy, reasonable UK business confidence and forecastsihat interest rates will remain at a controlled level are all heartening iii terms of future prospects." He may wish to rethink the impact of interest rates after the Bank of England's surprise 0.25% increase.

Tags

Organisations: Bank of England

comments powered by Disqus