Lookers foresees slide

The boss of one of Britain's biggest motor dealers today predicted that the recovery in the new car market will stall next year after the Government's "cash-for-bangers" scrappage scheme comes to an end.

Peter Jones, chief executive of Lookers, said that he expects new car sales in the UK to be "flat" next year as the end of the scheme offsets a boost from a recovery in the economy.

He said: "It's going to remain very challenging: sales will remain at the levels last seen in the 1990s."

New motor sales fell 15% in Britain in the first nine months of this year, but Lookers said it is performing better than its peers.

Like-for-like sales of new cars at its franchises are only down 4%, helped by the scrappage scheme and a recent pick-up in corporate sales. Jones added: "We are getting a bigger slice of a smaller cake."

Lookers, where after care such as servicing and repairs makes up around 60% of sales, said that trading from July to September was significantly ahead of last year.

After-sales revenues have risen 3% in a shrinking market.