The cost of technology development in new cars, and the higher resultant cost to the consumer, may mean some hold onto their cars longer in future.
Andrew Marsh, of Auto Industry Consultancy, said the technology required to meet emissions regulationsin Europe has cost a vast amount of money.
This has increased the base cost of building cars, and may make it more likely that cars are kept for longer, the former Thatcham executive told the IMI's Autumn Representative Member Assembly at Crewe.
He said developing an all-new model can cost 2.5bn euros, so may be hard for some manufacturers to justify.
An award-winning journalist and editor, with two decades of experience covering the motor retail industry, and accredited by the Institute of Leadership and Management (ILM) plus the National Council for the Training of Journalist (NCTJ)
As editor of AM since 2016, Tim is responsible for its media content, planning and production across AM's multiple channels, including the website, digital reports, webinars, social media and the editorial content of AM's events, Automotive Management Live and the AM Awards. His focus is on interviewing senior leaders of franchised dealer groups and motor manufacturer national sales companies to examine latest developments in UK motor retail.
Dogsbody - 28/11/2012 17:36
I am a bit confused by this article. Does it mean the consumer will keep their cars longer or does it mean that manufacturers will extend the life cycle of models before replacement. I suspect it is the latter that the article is trying to say.