Dealership goes into administration

A Stafford car dealership has gone into administration as car sales have plummeted across Britain by more than a third.

The Mike Thompson Peugeot dealership, in Newport Road, called in administrators this week. But it will remain open for new and used car sales, servicing and maintenance while a buyer is sought.

Joint administrators Graham Bushby and Bruce Mackay, of Baker Tilly Restructuring and Recovery LLP, say they are confident they will sell the business quickly.

Mr Bushby said: "Everyone is more than aware of the current difficulties facing much of the motor industry. We are pleased to say that we have already received a number of inquiries from interested parties."

The dealership celebrated its fifth anniversary earlier this year.

It was also revealed today by the Society of Motoring Manufacturers and Traders (SMMT) that the latest national figures show car sales in November fell by 36.8 per cent compared to the same time last year.

With loans hard to get, sales to private buyers have been particularly badly hit – down by a massive 45 per cent. Company car fleet buyers are also buying fewer vehicles as businesses look to save money during the recession.

Just 100,333 new cars were registered last month, compared to 158,735 in November 2007. Among the hardest hit car makers were Mitsubishi, down nearly 70 per cent, while Aston Martin sales fell 72 per cent and Land Rover numbers were down 64 per cent.

SMMT chief executive Paul Everitt said: "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 reductions, overall demand continues to fall. 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."