European parliament backs car industry

Mar 26 2009

The European parliament has given its backing to the motor industry in a move that could help the sales of new and used cars.

As the global recession has caused a slump in demand for new cars, many companies have struggled to cope, seeing sales slide.

However, the European vehicle manufacturers' trade association ACEA has welcomed a new resolution adopted by the European parliament which promises to support the car industry.

"The parliament puts its full political weight behind support measures from European institutions and governments and stresses that urgency is key," said ACEA secretary general Ivan Hodac.

It is hoped the weight of support behind the industry will give manufacturers the confidence to continue bringing out new vehicles, which could also spur the number of used cars coming into the market as people begin to upgrade.

The British Car Auction organisation has recently warned that the strong used car market means smokers should think twice before lighting up in their vehicle.

With strong demand for used cars, people are being more picky about the types of car they want and a vehicle that smells of cigarette smoke could lose a significant amount of value on its resale.

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