Editor's Note: Getting back on course
In an unprecedented move, executives have adopted the historic call of the factory floor to defend themselves and promote their cause. Manufacturers, importers, dealerships, finance firms and market analysts gathered for a summit meeting to discuss the plight of their industry - and agreed to form a government lobby group to fight for their interests.
So what brought about this unusual spectacle of Poland's leading car companies breaking bread at the same table?
While most sectors of the economy have been pleasantly surprised by the 'accession affect' and some, such as farming, have been clear winners, it is also probably true to say that no other industry has been dealt such a major blow by EU membership.
Sales of new cars are now 34 percent down on pre-accession levels and industry figures believe the government is failing to take account of other factors, such as the huge reserves of unsold imported cars that will skew the market for years to come. The current situation is not necessarily the result of one single factor, but rather a series of miscalculations and shortsighted policies. And they fear the government's proposed changes to VAT charges on cars could be the straw that breaks the camel's back.
Customers have been left wondering whether they can afford a new car, whether the VAT or tax rules will change a year down the road, and puzzling over how little their current car is worth as a result of the flat market.
Without remedial action, the price Poland pays could be more serious and longer lasting. The auto industry brings in millions of złoty and employs thousands of people. However, one seasoned importer of luxury vehicles ventured that some manufacturers may consider scaling down their operations if the situation continues to slide.
Let's hope the new group can apply the brakes and set the auto industry back on course.
John Todd
Deputy Editor
So what brought about this unusual spectacle of Poland's leading car companies breaking bread at the same table?
While most sectors of the economy have been pleasantly surprised by the 'accession affect' and some, such as farming, have been clear winners, it is also probably true to say that no other industry has been dealt such a major blow by EU membership.
Sales of new cars are now 34 percent down on pre-accession levels and industry figures believe the government is failing to take account of other factors, such as the huge reserves of unsold imported cars that will skew the market for years to come. The current situation is not necessarily the result of one single factor, but rather a series of miscalculations and shortsighted policies. And they fear the government's proposed changes to VAT charges on cars could be the straw that breaks the camel's back.
Customers have been left wondering whether they can afford a new car, whether the VAT or tax rules will change a year down the road, and puzzling over how little their current car is worth as a result of the flat market.
Without remedial action, the price Poland pays could be more serious and longer lasting. The auto industry brings in millions of złoty and employs thousands of people. However, one seasoned importer of luxury vehicles ventured that some manufacturers may consider scaling down their operations if the situation continues to slide.
Let's hope the new group can apply the brakes and set the auto industry back on course.
John Todd
Deputy Editor
