Car sales drop a further blow for industry

Former managing director of Mitsubishi Australia, Graham Spurling, says a 10 per cent drop in new car sales is more bad news for the industry.

Australian Bureau of Statistics (ASX: ABS.ax) figures show just over 80,000 light vehicles were sold last month, down from almost 90,000 at the same time last year.

The biggest falls in sales were in New South Wales, Queensland and Tasmania.

Mr Spurling says the problems in the car industry have become self-perpetuating.

"It's a big blow for all the families that work in the industry and the multiplier effect, it's a big blow for the dealers and there's a second dimension that comes into this too is the availability of finance," he said.

"It's all started because people don't trust the banks and the banks don't trust each other."

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Wed 19th November 2008 - 04:22pm