Poor sales force car firms to close temporarily

THE GLOBAL downturn in new car sales is forcing car firms and suppliers to temporarily close production facilities.

THE GLOBAL downturn in new car sales is forcing car firms and suppliers to temporarily close production facilities.

BMW said yesterday it would shut down its east German factory at Leipzig for four days this week and its three plants in Bavaria for five days next week.

In Britain, Jaguar and Land Rover announced plans to cut 200 jobs in its production facilities. Workers at the firm's plant in Halewood, Liverpool are currently on a week off.

The global downturn is also reflected locally, with new car sales in Ireland down nearly 18 per cent so far this year. Predictions are for the year to end at just over 150,000 new cars with estimates for 2009 at between 100,000 and 120,000.

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In the midst of this downturn, the Society of the Irish Motor Industry (SIMI) has again hit out at what it calls "smugglers and cheats" and warned it is "not prepared to sit back and wait" for action against those who illegally import cars.

The body, which represents car dealers and service centres across the State, insisted there was "no sign of any enforcement" on illegal imports.

SIMI, which recently asked its members to report Irish residents driving UK-registered vehicles, said: "In the present climate with the industry on its knees, this is not acceptable."

SIMI has also warned drivers they may not have their damage covered if they are in a crash with a foreign-registered vehicle. "Vehicles that go unregistered . . . are untraceable, leaving tax-paying motorists exposed in the event of an accident," said Alan Nolan, director general of SIMI.

But the Revenue has insisted it is taking action against those who import illegal cars as part of ongoing operations.

The Revenue said it was challenging about 1,500 vehicles a month and had issued written warnings, imposed penalties worth more than €715,000 in the first eight months of this year, as well as obtaining court convictions and fines.

However, Mr Nolan was unrepentant. "We are aware that a multi-agency task-force is due to make some proposals on tackling this issue, but the industry needs to see strong action."

- Additional reporting: Reuters