BMW fear for the winter
Tim Abbott, the BMW UK Managing director, believes sales are set to fall and the German automotive giants are set to struggle.
Many of BMW staff all over the nation fear for their job. Some dealership could also be facing closure.
Some may be surprised at the news. BMW appear to have had a very healthy year in terms of profits and sales. But this hasn’t stopped Tim Abbott sending warnings for what is about to come.
Toughest winter yet
He said “We’re in for the toughest winter yet. The market will bottom out. The retail share is down a huge amount with only fleet sales staying buoyant.”
“We all thought 2011 would be tough to begin with then get better in the second half. In fact the opposite has been true – the first half was strong but it’s really fallen away. There’s no doubt things will be tough going forwards.”
Positivity in the future
We reported earlier this year that Paul Everitt, of the Motor Manufactuerer and Traders society believed that the UK car market will decline over the next five years. Tim disagreed on that view by saying “I don’t agree with Paul there, I think come 2013 things will be starting to get better. But 2012 is going to be very tough indeed.”
“If we manage not to go back into recession then I think that’s as good as we are going to get. The market will be flat lining for the next six months then I hope the Olympics will give us a good boost.”
He did say however that the current Eurozone crisis means the industry could become worse before it gets better. He said ‘With Europe stuttering we can’t just carry on as an island on our own,’ he explained. ‘We’re connected to Europe so if it isn’t working my fear is the contagion will spread. We are in a seriously dangerous place. Six months ago I didn’t think falling back into recession was possible, I thought it would be slow but we’d come out of it. But today, I pick up a newspaper and think ‘what next?’ I genuinely believe we have to be ready to face the worst.’
Will BMW UK proceed with job cuts and report poor sales? We believe they have a very healthy future, if year to date statistics have anything to go by.