Mini sales drop by 58 per cent

6:23pm Thursday 4th December 2008

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BMW bosses tonight said there were no current plans for more job cuts at the Cowley plant following a slump in Mini sales.

Year-on-year figures released by the Society of Motor Manufacturers and Traders showed sales of the car in the UK had tumbled by 58 per cent in November.

In the UK, 1,723 Minis were sold compared to 4,104 last year.

The statistics came as BMW prepares to shut down the Cowley plant for almost a month on Sunday.

Last month, it was revealed 300 agency staff were being laid off. More than 4,500 people work at the plant.

Mini spokesman Rebecca Baxter said: “There are no current plans regarding staffing levels.”

She said the company had already announced a reduction in agency staff, to follow the introduction of a new shift system in January.

Worldwide sales figures of the Mini were up by 10.5 per cent at the end of October compared to last year, she added.

Ms Baxter said: “As a result of the current economic conditions, November has prov- ed yet another difficult month for car sales, with the total market finishing the month 37 per cent down on last year.

“Both BMW and Mini sales in the UK reflect this downturn, finishing the month 41 per cent and 58 per cent down respectively.”

For the year to date, Mini sales in the UK are 13 per cent down, with the total UK car market 11 per cent down.

Ms Baxter said the slowdown in Mini sales was in part due to the fact that currently only two out of three models – the Hatchback and Clubman – were in production.

The Mini Convertible sold out its UK production run and a new model will go on sale in March 2009.

Ms Baxter added: “There is also evidence many customers who intended to take delivery of a new vehicle in late November have deferred their purchase to December to benefit from the Chancellor’s announcement of a 2.5 per cent reduction in VAT.

“On a large ticket item, such as a car priced at £15,000, this equates to a saving of £375. As a result, we anticipate an uplift in the December sales results.”

Bernard Moss, plant union convenor, said the sales figures were disappointing, and added: “I hope the new year is better than this one, and that Gordon Brown’s cut in VAT starts to kick in.

“We are hoping that there will be a feelgood factor round about Easter time and people feel able to start spending again.

“It’s possible there will be an increase in sales this month if customers have been holding on to get a VAT saving.”

affrench@oxfordmail.co.uk