UK new car sales down 37 percent in November

LONDON - New car sales in Britain fell 37 percent in November compared to the same month in 2007, with total sales hovering just above 100,000, another sign the automotive sector is being hit hard by the financial crisis, an industry group said Thursday.

The Society of Motor Manufacturers and Traders said sales to the private market were off 45 percent. For the year to date, total sales were down 10.7 percent compared to last year.

"November has been another difficult month for the motor industry and whilst some consumers may have delayed their purchases to take advantage of the recent VAT (value-added tax) reductions, overall demand continues to fall," said Paul Everitt, the society's chief executive.

"Urgent action is now required to ease access to credit and finance, both to support consumers and meet the cash-flow needs of the industry."

The Bank of England is widely expected to cut its key interest rate later Thursday from 3.00 percent to as low as 2.00 percent.

No manufacturer recorded an increase in November; Volvo had the best result with a drop of 6.7 percent.

Chrysler sales dropped 76 percent, Lotus 73 percent, Mitsubishi 70 percent, Alfa Romeo 68 percent, and Land Rover and Renault fell 64 percent.

Ford, the leader in volumes of sales, reported a fall of 12 percent while the second largest producer Vauxhall saw a 12.5 percent decline.

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