Fleet News

Car price differences will remain

THE power of the fleet sector in the UK car market would help ensure price differences remain under a single currency, a major new survey from the Society of Motor Manufacturers and Traders has revealed. The survey of SMMT members - including car manufacturers, dealer groups and industry service companies - predicts 'significant differences would persist in terms of market structures and market requirements'.

Even if the UK joined the single currency in the first wave, the need for higher specification and right hand drive vehicles in this country would continue to influence pricing, says the report. 'Those surveyed felt that a single currency was unlikely to alter their existing pricing policies dramatically.'

The reactions may come as a surprise to many industry commentators, who have assumed the single currency would initially make price differences between member states more visible to customers, accelerating the trend to single pricing across markets.

The survey comes as debate intensifies in the UK motor industry over European integration. Toyota has issued a thinly-veiled warning that it may change its European investment strategy if the UK stays out of economic and monetary union (EMU). And Vauxhall chairman Nick Reilly was among a group of 23 business leaders which wrote to the Financial Times recently attacking the spread of 'extreme Euroscepticism'.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee