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Emissions – Dirtying The New Car Market

27-09-2018
Industry news

As the Diesel emission scandal threatens to rage on continually, news breaks that it may have further sullied the waters, this time in New Car Sales.

Various news sources have warned that strong new car sales figures posted in August are likely to ‘crash in September’, after artificially high levels were caused by dealers pre-registering vehicles, to avoid being burdened with loads of cars that do not pass the new stricter Worldwide Harmonised Light Vehicle Testing Procedure; which came into force earlier this month.

All cars registered post 01.09.2018, MUST conform to the system’s strict new testing procedure for fuel consumption, CO2 and pollutant emissions, meaning that the super high 94,000 plus vehicles registered in August has left dealers trying to off-load these non-compliant cars on the market.

Sources at Auto Trader said, “We’ve seen more tactically registered new cars advertised each month.”

Discounts galore will be needed, and given that many of these vehicles will have delivery mileage only on the clock, New Car Sales will be rocked, after all why buy a new car when a pre-registered one with 70 miles on the clock is so much cheaper?

VW, the axis-of-evil in the emissions scandal themselves registered 48,196 more cars in August 2018 (Jato Dynamics) across Europe than their nearest rival brand Renault. That’s a 45% increase from August 2017.

Sounds a bit like the automotive equivalent of flotsam and jetsam. 

So who wins here?

The consumer? Depends, there will be great deals but who knows what will happen about taxing non-compliant cars in the future? It also depends on what car you wanted; some vehicles, such as the VW Golf R, have had significant reductions in power; while others such as the highly desirable BMW M3 have been shelved altogether, with the cost of conforming to new regulations, considered by BMW too great.

The Dealer? Not really, while they will sell cars, profit will be questionable and certainly less significant, and New Car Sales Targets harder to hit.

The Manufacturer? Who knows, probably not the cost in conformity is quite high!

The Planet? That was the goal, but it seems that until 2040, there is still a long way to go before the utopian zero emission transportation network, and with cheaper non-compliant cars flooding the market, it is a veritable pipe-dream.