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Motor Industry - Essay Example
The motor industry and cars in particular are a perennial favourite of politicians. Environmental and legal issues will be discussed later. Politicians are also currently looking at safety concerns related to cars and the state of the UK road network. The UK road network is barely able to cope with the number of vehicles currently wishing to use at…
The government is trying to reduce people's reliance on cars and get them to use the public transport network, which may well be good news for buses. Unfortunately they appear to be using the stick and stick approach to getting people out of their cars.
Consumer confidence in the new car market is currently in a downturn. This is due to a number of factors. Firstly, rising interest rates mean that the cost of car ownership is increasing (due to the increasing cost of loans needed to pay for owning me a new car). Also the rise in interest rates means that there is less income available for spending on a new car. There is also a lot of consumer uncertainty in the costs of fuel.
Taxation is also playing a part; taxation rules now view company cars as a benefit to the employee rather than its necessity of doing the job. And as such taxation rules regarding them are tightening sharply it is no longer much of a benefit to have a company car - although they can be considered a status symbol.
A higher proportion of households now have more than one vehicle and this has led to a number of interesting effects. There are a growing number of women in the workplace, and as such or ownership amongst women is going up. In addition as households have more than one vehicle, those vehicles are becoming differentiated. ...