Help drivers buy new cars, urges leader

Mar 10 2009 by Chris Knox, The Journal

THE North Easterner who has just been made chief executive of leading motor industry joint venture The Retail Automotive Alliance (RAA) has called on the Government to encourage more people to buy new cars.

The former owner of Newcastle’s Patterson Ford chain Ashley Winter believes the Government should take up recent suggestions that motorists should receive discounts on new models by trading in their old cars for scrap.

The Corbridge businessman believes offering such incentives are the only way to lure drivers back into new-car showrooms in the short term and help to bring back axed workers to the ailing industry where thousands of jobs have been lost. He said: “Although the motor industry has been hitting the headlines for the wrong reasons of late, it’s fair to say that some areas of the trade are still holding up.

“Used-car sales, for example, are on the increase for a number of businesses as a result of tighter budgets.

“However, it is the new car market that is suffering and, although drastic rate cuts have helped, potential customers need more persuading if they are going to buy new.”

In May he will take over as chief executive of the RAA, which brings together 22 retailers as a way of improving their purchasing and bargaining power. He said he would be looking at ways of reducing costs among RAA members as well as better ways of sharing of good working practices.

“I am thoroughly looking forward to returning to the industry in this challenging new role, working amongst old friends for their mutual business benefit,” he said.

“There has never been such a difficult period for the retail motor industry in recent times and the RAA plays a vital part in containing the cost base of the shareholders.”

Mr Winter was a co-founder of the RAA while he was managing director of the Patterson Motor Group, which had a turnover of £250m before it was sold to the Arnold Clark Group last year.