The Motoring Industry & The Recession

**pete** · 05/03/2009, 4:14 PM

A NEW Mercedes Benz was fitted with secondhand alloy wheels and used tyres just before it left a leading car sales showroom, a court heard yesterday.

But Mr Ryan, of 150 Howth Road, Clontarf, Dublin, decided he would have them checked out at a tyre centre.

This confirmed the tyres on his day-old Kompressor were secondhand and had completed about 10,000 miles, with about a third of the tyre tread depth worn away.

Must be difficult to regain reputation from incident like that.

**a.a.d** · 05/03/2009, 4:36 PM

I'm one of the people who got up off their arse and actually spent some time looking for a deal on a car in Ireland and the Uk, I eventually went to the uk and Brought back a Volvo S80 with a certified 10K on the clock for a the grand total of €15000 including VRT, tax and insurance for the first year.

I think people are mad to look at the main dealerships here and that the majority of them are not helping themselves in any way, For Example My wife is now looking at getting a new car so she brought her 2006 Opel Tigra into an opel Dealership in Dublin, The car WAS valued at €27000 brand new, the price she was quoted for the car a couple of week ago was €9000. Now thanks to that price she decided not to purchase a brand new opel Astra.

You may say that the price of second hand cars has crashed (excuse the pun) in the last couple of years but on this dealerships fourcourt was a lower speced 2005 Tigra with a price tag of €14500.00 and as her one was a 2006 I would expect them to charge more for it in return making a massive profit.

The sooner a couple go out of business the better if you ask me.

**pineapple stu** · 05/03/2009, 8:12 PM

I don't think anyone pays the price in the window.

**John83** · 05/03/2009, 9:27 PM

Originally Posted by pineapple stu

I don't think anyone pays the price in the window.

That, and if you're lumbered with a pile of stock you can't shift, you're not going to be offering good money for more stock.

**pete** · 05/03/2009, 9:30 PM

Originally Posted by a.a.d

I'm one of the people who got up off their arse and actually spent some time looking for a deal on a car in Ireland and the Uk.

BMW Ireland are now importing new BMWs from their parent company BMW UK. A good effort even if they incorrectly claim are selling at UK prices - they add 10% onto the UK list price. Will be interesting to see other distributers/dealers follow that lead.

**Fr Damo** · 06/03/2009, 9:23 AM

Does anyone know where BMWs that are sold in the Uk are actually made?

**pineapple stu** · 06/03/2009, 10:07 AM

BMWs are made in Germany. (Or at least, they come from Germany; there's a chance they're made by slave third-world labour, but I'm 99% sure it's Germany)

pete - as noted earlier, other dealers are in fact way ahead of BMW Ireland.

Just passed 10000 Dublin regs. Seems to have slowed even further in February.

**endabob1** · 06/03/2009, 10:25 AM

Fr Damo
I work in the Motor industry in South Africa & I have some dealings with BMW here, as far as I know some of the production here is for the UK market, might I ask why the question?

Pinaple Stu
There's suprisingly little automotive manufacturing left in Germany, most of it has moved to Hungary or the Czech Republic. Audi for example produce most of their European Cars in Hungary.

**Fr Damo** · 06/03/2009, 10:38 AM

I ask the question because wether the vehicle is sold in Ireland or Uk if Stu is correct the cost of that item to BMW is denominated in Euros... So the UK importer must have to pay more sterling to get his BMW, and therefore the price should be going up in the UK. Albeit only with the currency fluctuatiuon and of course if the market was boyant.

I see car sales in the UK are 21% down for Feb based on last year, that's nothing compared to our 60+%.

These type of measures are what seperate us from the rest of the world & point to the fact we are in serios serious trouble. BTW, did anyone hear Biffo say they didn't know tax was so slow for Feb becasue they wait for the returns to calculate it?? Why doesn't he ask twenty companies how they're sales are doing, A bloodly straw pole, and he would see VAT has collapsed. February 09 was my worst month in Business - Non Car but in Automotive trade, we formed 19th July 93.

**pineapple stu** · 06/03/2009, 10:58 AM

Originally Posted by endabob1

Fr Damo
I work in the Motor industry in South Africa & I have some dealings with BMW here, as far as I know some of the production here is for the UK market, might I ask why the question?

Pinaple Stu
There's suprisingly little automotive manufacturing left in Germany, most of it has moved to Hungary or the Czech Republic. Audi for example produce most of their European Cars in Hungary.

According to wikipedia, BMWs are primarily manufactured in Germany. (Obviously, "production" is often defined loosely to give a desired answer; could be the last stages of production are done in Germany so BMW can say they're made there.)

**dahamsta** · 06/03/2009, 11:15 AM

They actually make some of their cars in the US now, as does Audi.

My first thought on hearing this was "oh christ, american built", but they featured the Audi factory on one of those "how stuff works" shows and the QC seemed very high.

adam

**endabob1** · 06/03/2009, 11:57 AM

Originally Posted by pineapple stu

According to wikipedia, BMWs are primarily manufactured in Germany. (Obviously, "production" is often defined loosely to give a desired answer; could be the last stages of production are done in Germany so BMW can say they're made there.)

Not too sure on BMW but I do know they build in the US & China as well as here, my guess is Germany is used for the local German market and maybe as you say like a finishing shop.
Sorry just checked your link & China isn't mentioned but I know for sure that they build there.
There is a lot of political influence and union strength with the carmakers in Germany but generally it is considered too expensive for any wholesale manufacturing, former Eastern Europe & Spain are more the hotbeds in Europe. Outside of Europe China & India are both becoming big manufacturers, as are Brazil (VW, GM, Ford, Fiat), South Africa (VW, Toyota, BMW, Mercedes Benz). I have worked in Motor manufacturing for 4 years so I know some of the markets pretty well, but my dealings with BMW are generally at a local level they build part of the 3 series here and it is for both Europe & African markets, my guess (having never been to their factory) is that it is probably just the UK/Irish Right hand drive versions that come from here.
It's basic economics which drives mass production to low cost countries, the plant I work in are a first tier supplier to the industry, our basic labour cost per hour is about 3 Euros in Germany it can run up to 10 times that.

**pete** · 06/03/2009, 11:58 AM

Originally Posted by pineapple stu

pete - as noted earlier, other dealers are in fact way ahead of BMW Ireland.

Bring in new cars?

**pineapple stu** · 06/03/2009, 12:17 PM

Yep..

**Fr Damo** · 13/03/2009, 11:56 AM

http://www.rte.ie/business/2009/0313/cars.html

Down 63% for February. Europe only down 18% because Germany was actually up about 21%. Spain is our nearest poor performer at 41% down. England down 21% .If Sterling was still at 68/70p to the Euro, what percentage do people think the new car sales would be down?

**pete** · 14/03/2009, 12:50 AM

Originally Posted by Fr Damo

If Sterling was still at 68/70p to the Euro, what percentage do people think the new car sales would be down?

Don't think it would make much difference as I don't think the importing 09 Reg cars has filtered in yet & won't make big difference. Only selected cars like low CO2 BMWs are worthwhile importing new.

Big swing to smaller cars amoung the sales that are going through. Scrappage deal will help sell more of them too.