- by John Reilly
Van sales falter
15 March 2003: Sixty-nine days into the current year the LCV market is down 8.8 per cent, with just 10,279 light commercial vehicle sales recorded.
This comes on top of the 15 per cent-plus slide suffered by the industry since January 2001. Instead of solutions, diesel and road tax increases in the budget, and ever since and government-sponsored inflation, coupled to burgeoning premia hikes from an-out-of-control insurance industry, the haulage and transport sectors habe been hitparticularly hard. And Iraq hasn't been factored in yet.
Some leading market players have taken savage hits, explained away by product shortage, vehicle run-outs and increased competition from established and new rivals.
The major share of the blame, however, has to be shouldered by the Government and especially the minister for finance Charlie McCreevy who has come in for strong criticism from one industry chief whose company has been badly screwed by government's motoring and transport 'policies' in recent times.
Last year, Fiat MD Michael Howe had predicted a serious decline in sales if the Government kept to its policies of high motoring taxes. Hit by a 26.7 per cent drop in LCV sales - down 218 units on the same period last year - and hammered even more so in his passenger car portfolio which is down 35.1 per cent - Mr Howe called on the Minister for Finance to ease the taxation burden - especially the double-tax on cars (VAT and VRT).
Meanwhile while the government fiddles, the van market falters. Toyota sales are down by 21.3 per cent. Friday's Land Cruiser Commercial arrivals - especially the SWB version which benefits from a new VRT rating of zero per cent and thus selling at E1,400 less than its predecessor (with thousands of euros in extra spec) - mightn't have come in time to impact on 2003 declines. But it does set up Toyota for a better 2004
Volkswagen, Ford's main challengers are also feeling pain with sales dropping by 22.4 per cent. A slow down in supplies reaching these shores is quoted as the major problem for the Irish franchisee - who are also waiting on the new Transporter (T5) - though this now comes to the market in September - much later than expected.
Citroen has also fallen back by 8.9 per cent but it is level with the market decline, and a recovery is imminent thanks to the landing of the revamped Berlingo (below) in late January and improved Relay sales over the last two weeks.
Opel sales are down by 16.3 per cent. Mercedes-Benz are also sluggish. But both can recover with new Vivaro derivatives and an updated Movano on the way for Opel and a revamped Sprinter and a new Vito heading this way in 2003 from Mercedes-Benz
Mitsubishi, despite the demise of the L300 and L400 vans enjoyed a good run with their L200 4x4 twincab pick-ups and Pajero longwheelbase and shortwheelbase commercials last year - all rated at Zero VRT. This year they've completed the tenth day of March with an 18.4 per cent deficit. From July 1, though, L200 twin cabs along with rivals like the Nissan Pathfinders, Mazda B-Series, Toyota Hi-Lux, Land Rover Defender and Ford Rangers, once again come under Mr McCreevy's VRT hammer. A 13.3 per cent rating is likely to add three to four thousand euros to the cost price and could kill another sector of the commercial vehicle market stone dead. As happened with the VRT adjustments on SWB 4x4 commercials two years ago.
It's not all doom and gloom. Leaders Ford have totted up 1833 unit sales against 1722 for the same period in the previous year - an increase 6.4 per cent. Transit consistently hitting sales targets, the rapid take-up for the new Transit Connect (below), a solid contribution from the Focus van and the new Ranger take much credit.
Numerically, Renault up by 122 units (+20 per cent) enjoy the best start to the 2003 campaign.
Renault, according to John Sullivan, the company's Corporate and Commercial Sales Director, have grown market share from 4.8 per cent to 7.1 percent over the last 13 months. He'll be disappointed if they don't achieve between 8 and 9 per cent market share for the full year.
Renault expect delivery of the updated Master van in October; there's a new high-roof, lwb Trafic on the way, too. And in Geneva last week we got a glimpse of the new Kangoo, another considerably enhanced Renault commercial scheduled for 2003 arrival.
Aided by better than expected Boxer (Relay/Ducato) sales, the arrival of the new Partner and Peugeot 307 vans and a sterling performance from the 206 van, Peugeot (+19.3 per cent) is another company making steady upward progress.
Nissan has also increased sales - by 16.1 per cent - on the back of an excellent run for the new Interstar and the off-road Pathfinder pick-ups. Newly arrived Primastar van (Trafic / Vivaro siblings) will add to Nissan's cheer.
Last - and most - Hyundai are the company making most gains - adding 44 vans to their 2002 sales sheet figures (+50. And with the Santa Fe Commercial now qualifying for a zero per cent VRT rate, expect to hear lots more from these Korean quarters.
Year to Date - Jan 1-March 10
1. Ford:1833, +6.4 per cent
2. VW: 988, -22.4 per cent
3. Toyota: 950, -21.3 per cent
4. Citroen: 923, -8.9 per cent
5. Nissan: 816, +16.1 per cent
6. Renault: 733 + 20.0 per cent
7. Mitsubishi: 728, -18.4 per cent
8. Peugeot: 644, +19.3 per cent
9. Fiat: 598, -26.7 per cent
10. Opel: 417, -16.3 per cent
11. Isuzu: 360, -14.7 per cent
12. Mercedes-Benz: 339, -17.7 per cent
13. Seat: 288, -28.9 per cent
14. Mazda: 140, +32.1 per cent
15. Hyundai: 132, +50 per cent
©2003 irishcar.com