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Car transporters see volumes drop 50%

05 February 2009

Despite the government unveiling a £2bn bailout package for car manufacturing in the UK, specialist car transporters face a bleak winter without financial assistance. According to the Road Haulage Association (RHA), the car transporter sector is looking at volumes 50% down on 2008, leading to moth balled fleets and fears of redundancies for specialist drivers.

Nick Deal, group secretary forthe RHA's  car transporters group, says the group has lost more thana fifth of its members in the past year (down 11 from 50). He says one member was running at 40% below last year's budget, and if it dropped to 60% it would not survive. Deal adds that with car transporter trailers mothballed due to the falling volumes of new cars being transported across the country, there are concerns that manufacturers are not getting much business as financial backers are worried "trailers will become virtually worthless".

"It is bargain time for various vehicles, and manufacturers are looking to the government for aid as confidence is knocked all round."

However, for prudent car transporter hauliers, "now is the time to buy something if you have the money if you are in a secure position", he adds.

This view is backed by the Freight  Transport Association.Sector head Lawrie Alford says: "The car industry slump has made life very difficult for car transport operators. The trailers alone represent a massive investment - with many purchased through finance - but without cars to transport, there is no other practical application for them so they become virtually useless at this time and unsaleable. It is very sad to see these companies forced into making wholesale redundancies of specialist drivers and fleet managers."

Ben Norton, managing director at specialist car transporter A&J Exhibitions, says his decision to move the company into niche vehicle distribution and away from contracts with car manufacturers has kept the firm in a strong position."We know there are fields of transporters parked up in the UK. Will the bigger car transporters be able to change their business model quickly enough to survive?"


Christopher Walton
Email at christopher.walton@rbi.co.uk
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