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Calls made to support motor trade

Two motor industry experts have called on the government to take steps to boost the flagging automotive industry, it has been revealed.

Chief executive of the Society of Motor Manufacturers and Traders Paul Everitt and Paul Williams, chairman of the Retail Motor Industry Federation (RMIF), have written a joint letter to Alistair Darling and business secretary Peter Mandelson to make moves to stimulate demand for new vehicles.

The pair have suggested that capital allowances for fleet managers, in particular those purchasing commercial vehicles, should be raised - in news that may be of interest to those on the search for fleet insurance cover.

Furthermore, it was proposed that plans to reform business car capital allowances should be scrapped.

In the letter, Mr Everitt said: "Urgent action is required to boost demand for new vehicles and ease pressure on UK automotive suppliers."

The RMIF chairman added that their proposed measures "would go some way to helping the revival of consumer confidence in our sector".

Earlier this week, Jason Francis, managing director of Jaama, claimed that a complete or partial abandonment of vehicle excise duty would help to offset the depressed residual values of higher emission company cars.

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