Over 2000 workers laid off as car sales fall 40pc

Tag : pottery

OVER 2,000 workers have been laid off from car dealerships aroundthe country due to plummeting sales, it was claimed yesterday.
The Society of the Irish Motor Industry (SIMI) said that while there hadn't been any large-scale closuresof garages so far, many workers had been made redundant since thestart of the year.
Car sales have been in freefall as the economic downturn escalatesinto a full-blown recession, with sales figures down by over 40pcin recent months.
One car dealer, who did not want to be named, admitted that theindustry was now "on one knee".
Brian Cooke , finance director for SIMI, said: "Expectations for 2009 are goingto be down on 2008 which was itself down on 2007. There is a degreeof pessimism out there, the same as any business sector."
However, Mr Cooke said history had shown that the motor industrywas very resilient.
"We haven't seen a large number of closures as yet. However, wehave seen in excess of 2,000 people laid off so it is a worryingtime," he added.
And even those who manage to hold on to their jobs are feeling thepinch. Mr Cooke said commissions form a large part of the earningsof sales people and these have dropped sharply over the past fewmonths.
He said that while prices for new cars haven't dropped, increaseshave been less than the headline inflation rate.
However, an over-supply of used cars has led to "substantial" pricereductions. Estimates put the price reduction between 13pc and20pc, although such drops have not translated into increased sales.
Meanwhile, one of the country's best known pottery companies, Stephen Pearce , which is based in Shanagarry, east Cork , closed over the weekend with the loss of 25 jobs.
Immediate
Staff were called to a meeting on Friday and told that the potterywas closing with immediate effect.
Local Fine Gael TD David Stanton said it was sad day for Shanagarry as the pottery was aninstitution in the area, providing valuable and skilled employment.Management at Stephen Pearce was unavailable for comment yesterday.
However, there is some good news as work on a new pharmaceuticaldevelopment facility, which will provide 300 jobs duringconstruction phase, is due to get under way today.
The new plant, which will provide 170 full-time jobs when complete,will specialise in the formulation of vaccines used to prevent andtreat a variety of healthcare conditions.
- Breda Heffernan