Swift To Cut Production

[Wee Bold Davy]

It looks like Swift will be cutting production of their caravans and motorhomes, predictable after the huge increase in VED on new motorhomes.

Caravan manufacturer Swift looks to cut staff after Brexit and tax blows

Cottingham firm, which employs more than 1,000 staff, has been hit by uncertainty in its main markets

www.business-live.co.uk

 

[Cheshirecat57]

Sympathise with staff, but haven't we been here before ( 2019, 2018, 2012, 2008) always with an excuse or othe.

 

[Jim]

Sympathise with staff, but haven't we been here before ( 2019, 2018, 2012, 2008) always with an excuse or othe.

When people aren’t buying your products you can carry on regardless and go bust. Or manage the situation as best you can. They are not the only maker doing the same. And sadly it’s happening in manufacturing everywhere from cameras to cars

 

[Jo662]

When people aren’t buying your products you can carry on regardless and go bust. Or manage the situation as best you can. They are not the only maker doing the same. And sadly it’s happening in manufacturing everywhere from cameras to cars

It’s true that all manufacturers in any industry are struggling and times are not great for them,but as Wee Bold Davy says the new tax on Motorhomes isn’t helping sales!

 

[Jim]

It's always a combination of things, and you're right the new tax can't help matters.

That said if I was in the market for a new motorhome with say £70k on my hip, the new tax would be a bummer, but I can't see it stopping me buying.

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[The Wino]

If its happening in other industries its obviously not just the VED affecting sales there is another reason mentioned in the article which we do not mention on here maybe thats the cause after all why would anyone punt £75k if they were dithering and felt financially uncertain. It will be interesting to see how Autotrail fare with their new line up maybe another reaction to falling demand is to redesign and try to get a bigger share of a smaller cake.
If it was just the VED Swift might actually do well I would have expected that to reduce mh sales but increase caravan sales

 

[StephDeLux]

I'm confused. I have not seen a Swift dealer in Belgium, Luxembourg, France or Germany. Haven't seen them at Düsseldorf any of the five times I've visited the fair.

How can Brexit affect them so much?

 

[596]

I could be sitting in a rare museum piece of British history, I had better go out and polish it

 

[Lenny HB]

That said if I was in the market for a new motorhome with say £70k on my hip, the new tax would be a bummer, but I can't see it stopping me buying.

A pain in the butt but will it really stop anyone spending 50k to over 150k on a new van, I doubt it.

 

[BobtheBass]

I thought all the manufacturers were boasting that sales were way up and they had beaten records at the last show? Signs that Billy Bullshit has been doing his stuff again maybe?

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[596]

I don't understand why there are so many models and versions of motorhome from one manufacturer, this is Swifts 2020 line up, 7 models and 52 different versions, there are 13 different versions of mine which is the equivalent of the Kontiki Sport!

It must be hard to build the right amount of each unless you just build to order.

 

[DC4JC]

It's always a combination of things, and you're right the new tax can't help matters.

That said if I was in the market for a new motorhome with say £70k on my hip, the new tax would be a bummer, but I can't see it stopping me buying.

Agree Jim. But its not just the up front cost. Its £465 a year VED thereafter, compared to £165 for a 3.5 t + now. So a significant increase, which is no longer aligned to the HGV Industry and therefore likely to increase in subsequent budgets.
So both elements will put people off either trading up or buying new.

 

[Chipster]

I'm confused. I have not seen a Swift dealer in Belgium, Luxembourg, France or Germany. Haven't seen them at Düsseldorf any of the five times I've visited the fair.

How can Brexit affect them so much?

I guess buying in parts. The vehicle base for example? Many parts will come from the EU.

 

[StephDeLux]

I guess buying in parts. The vehicle base for example? Many parts will come from the EU.

Well, firstly, UK is still part of the EU so nothing has changed as yet. Secondly, this could affect them only if UK imposes tariffs on EU imports, which I understand is not your government intention.

 

[PeteH]

Conversely I understand that the "Static" Caravan sector is Booming?. Allegedly as a result of (the word we cannot use ) more people are "staycationing". Leading to an upturn in demand for "Mobile Homes"?. Driving back towards Hull on Monday Morning we lost count of the number being moved "southbound". But I reckon in excess of 30, in less than 2 hours, and locally the stock levels are reducing noticeably.

A local MP was predicting this some time back, ie; that the change to VED would impact on Motorhomes, and to a lesser extent caravans.

My view is that it was short sighted of the DVLA (and or their Govt; Masters) to implement this at this time, likely under pressure from "green" idiocy. Of course you could always of-sett the VED by buying Abroad at a discount?. But that too would impact on UK sales and Job`s.

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[Jim]

A local MP was predicting this some time back, ie; that the change to VED would impact on Motorhomes,

It's a great excuse, but in reality, I really can't see it having that much of an effect. Of course it may put some people off. But if someone really wants a new motorhome for £70k and the price is now £72k they will still buy it. I think that when you get to spending what motorhomes cost today the £2k just isn't a deal-breaker. Cash buyers won't blink, and loan users will pay maybe an extra £20 a month, but I think they will still buy the van

 

[The Wino]

Conversely I understand that the "Static" Caravan sector is Booming?. Allegedly as a result of (the word we cannot use ) more people are "staycationing". Leading to an upturn in demand for "Mobile Homes"?. Driving back towards Hull on Monday Morning we lost count of the number being moved "southbound". But I reckon in excess of 30, in less than 2 hours, and locally the stock levels are reducing noticeably.

A local MP was predicting this some time back, ie; that the change to VED would impact on Motorhomes, and to a lesser extent caravans.

My view is that it was short sighted of the DVLA (and or their Govt; Masters) to implement this at this time, likely under pressure from "green" idiocy. Of course you could always of-sett the VED by buying Abroad at a discount?. But that too would impact on UK sales and Job`s.

Is there that big a discount buying abroad at the current exchange rate? I would be surprised if its as good a deal as a few years ago. I think the effect on manufacturers is a mix of factors theres B******t affecting consumer confidence, the diesel debate/fear of restrictions the VED increase and maybe a bit of market saturation there are only so many people who want m/h and there might well have been an initial rush when the pension restrictions were relaxed which has now stablilised. I don't think B******* is affecting the manufacturers costs yet as there has been no change in tariffs etc but it might mean they have the costs of stockpiling some items but thats unlikely if they are cutting back. A couple of years ago we had a lot of friends who when they heard we had a m/h said they fancied one 5 couples have now bought but there does seem to be a bit of a feeling that it was a fad that might be nearing the end of its popularity (like prosecco and pinot grigio!!)

 

[2x2camper]

Is there that big a discount buying abroad at the current exchange rate? I would be surprised if its as good a deal as a few years ago. I think the effect on manufacturers is a mix of factors theres B******t affecting consumer confidence, the diesel debate/fear of restrictions the VED increase and maybe a bit of market saturation there are only so many people who want m/h and there might well have been an initial rush when the pension restrictions were relaxed which has now stablilised. I don't think B******* is affecting the manufacturers costs yet as there has been no change in tariffs etc but it might mean they have the costs of stockpiling some items but thats unlikely if they are cutting back. A couple of years ago we had a lot of friends who when they heard we had a m/h said they fancied one 5 couples have now bought but there does seem to be a bit of a feeling that it was a fad that might be nearing the end of its popularity (like prosecco and pinot grigio!!)

Costs have gone up due the the exchange rate drop, I know it has recovered since.

 

[sparky]

Hi so if new motor homes are taxed as care will you be able to drive them at 70 years old without a medical

 

[Simon Select]

I don't think its the tax that's the issue from a dealers perspective. We are not dead but we are not running away with it. Luckily we are a large enough group that we won't need layoffs etc.
I suspect a lot of dealers will go bust over the next 6 months.
With regards to the VED, in my opinion it won't make a difference as any dealer worth his salt will be smart enough to lose some of the hike in his margin!
I agree with Jim and Lenny HB people that want to buy a van will buy a van.
We are missing the "Impulse buyers" the guys that have a van and there is nothing wrong with but have a look and then get hit with a deal that they can't say no to.
The biggest problem in the industry at the moment is the uncertainty. Shit happens every day and life plods on however all year Brexit has been looming and people are scared/ fed up/ not sure whats happening, now through in a General Election and its even more confusion. Mr and Mrs Smith will hold on to their £100k until everything is a bit clearer/safer, thats what is hitting every industry out there at the moment.
Simon

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[pagey]

I could be sitting in a rare museum piece of British history, I had better go out and polish it

Steady

 

[Coolcats]

I don't understand why there are so many models and versions of motorhome from one manufacturer, this is Swifts 2020 line up, 7 models and 52 different versions, there are 13 different versions of mine which is the equivalent of the Kontiki Sport!

It must be hard to build the right amount of each unless you just build to order.

In today’s manufacturing mass production of one off’s is relatively straight forward and who doesn’t like ordering a MoHo or Car or Watch to their own specification.

 

[596]

In today’s manufacturing mass production of one off’s is relatively straight forward and who doesn’t like ordering a MoHo or Car or Watch to their own specification.

The problem is dealers order them in bulk with what they feel is the right specification, the are hundreds of 2019 motorhomes unregistered for sale at the moment around the country, that was my point!

 

[Geo]

It's always a combination of things, and you're right the new tax can't help matters.

That said if I was in the market for a new motorhome with say £70k on my hip, the new tax would be a bummer, but I can't see it stopping me buying.

I'd settle for the new Tax on my hip Jim
(Poor retired Motor trader)

 

[Rob Hammond]

Is there that big a discount buying abroad at the current exchange rate? I would be surprised if its as good a deal as a few years ago. I think the effect on manufacturers is a mix of factors theres B******t affecting consumer confidence, the diesel debate/fear of restrictions the VED increase and maybe a bit of market saturation there are only so many people who want m/h and there might well have been an initial rush when the pension restrictions were relaxed which has now stablilised. I don't think B******* is affecting the manufacturers costs yet as there has been no change in tariffs etc but it might mean they have the costs of stockpiling some items but thats unlikely if they are cutting back. A couple of years ago we had a lot of friends who when they heard we had a m/h said they fancied one 5 couples have now bought but there does seem to be a bit of a feeling that it was a fad that might be nearing the end of its popularity (like prosecco and pinot grigio!!)

Surely not Prosecco

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[Lanerboy]

It's across the board I heard on the radio only yesterday new car sales are down by 6.7% on last year that's a big margin

 

[andyman]

It's always a combination of things, and you're right the new tax can't help matters.

That said if I was in the market for a new motorhome with say £70k on my hip, the new tax would be a bummer, but I can't see it stopping me buying.

The new car tax over £40K has stopped me buying a new car, and a new motorhome.
There is always a limit you can push people to.

 

[PeteH]

Unless I win the lotto. My current `van will likely be our last anyway. I see no need at this time to worry about E-6 or ULEZ etc;. I have NO desire to visit Londanistan again anytime soon, or pretty much any of our major conurbations. My recent visit to Bristol will likely be my last, Baltic Wharf is already under threat. If second son is silly enough to move his "barge" inside the "zones" he will have to come visit me!. Interesting thought there. Does the ULEZ/LEZ apply to Motorised Canal Boats?. Inside the Zones?.

To be honest, I am sick to death of this sort of Taxation, We have all worked hard for our retirements, (or are working towards it). Only to be retrospectively penalised for hard work and Saving!!.

 

[Rob Turner]

Agree Jim. But its not just the up front cost. Its £465 a year VED thereafter, compared to £165 for a 3.5 t + now. So a significant increase, which is no longer aligned to the HGV Industry and therefore likely to increase in subsequent budgets.
So both elements will put people off either trading up or buying new.

When I’m spending 80k + on a new MH, the upfront tax and extra £300 a year wouldn’t stop me buying my next one in a couple of years or so.
I buy in Germany anyway so save there.

 

[Coolcats]

The problem is dealers order them in bulk with what they feel is the right specification, the are hundreds of 2019 motorhomes unregistered for sale at the moment around the country, that was my point!

Totally understand your point about the new MoHo's lined up at dealers, in part I think some people are happy with a dealer specced van particularly the wait time if you have set your mind on a MoHo. Have to say if we were ever to buy another new MoHo it would still be to our specification not the dealers but I would get the lie detector out on delivery times (amongst other issues), even Hymer had to chase the dealer to get the MoHo of their premises it had been built a month and it was still sitting in their carpark! It was quite funny when I look back the dealer had claimed the MoHo had been picked up and was in transit and there was no way of finding where it was.......when I managed to find the company that was delivering it there was a big "Click here" to track your delivery button. I think the dealers sometimes think customers are stupid.......

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