The ten big car stories of 2008
2008 will undoubtedly be looked upon as a watershed year for cars. In fact, it will probably be an epoch shifting one, because there's nothing that changes things like a good old crisis. It all started with the news that, shock horror, all our borrowing had come back to bite us on our collective behinds, with the housing market becoming the first major casualty. Unfortunately, and predictably, the second most expensive item on most people's 'stuff I have' list was the next to take the hit: the car.
With the cost of living - including fuel - getting ever higher, new car sales began to dip - a trend that continues to gather pace, despite fuel getting cheaper now. It was only a matter of time before one of the makers took a massive hit; look at what happened to Northern Rock.
That maker was General Motors. And even now, as we approach the season of goodwill to all men, US Congress is still arguing about what the best way forward is - with all solutions involving a massive cash bailout of some description. Still, years of awful cars and brand mismanagement means GM hasn't got the minerals to make it through the crunch, and might not even survive past Boxing Day.
But at the same time, the saviour has arrived: the electric car. We're all still slightly cynical, despite the Tesla being so marvellous, but it's here nonetheless. Plenty more has happened, of course, so read on for a trip through 2008.
January: Tata says hello to world's cheapest car
Only days after a story surfaced all but confirming Tata was set to buy Jaguar from Ford, the Indian maker officially took the wraps off the Nano - the world's cheapest car. However, its 100,000 rupee (£1,275) price tag left experts and lay people alike cynical. And that cynicism was well placed, because the Nano is yet to appear in India or anywhere else. Problems with rising production costs linked to the credit crunch have put the car on hold, with various unconfirmed launch dates mooted.
February: Congestion Charge to hit £25
London Mayor Ken Livingstone caused controversy by announcing a massive increase in the London congestion charge: £25 for cars emitting over 225g/km. The charge was supposed to punish the large 4x4s and sports cars apparently clogging up London's congestion zone. However, a few notable family cars, like higher powered Vauxhalls, were dragged into the scheme, and Porsche ended up running a legal challenge against the increase. The RAC called it “gesture politics”, and it was eventually scrapped by new Mayor Boris Johnson.
March: Budget targets cars
As ever, March was a big month for car lovers, as Geneva played host to a number of new launches, including two opposing brands - Infiniti and Dacia, luxury and budget marques from Nissan and Renault respectively. However, new Chancellor Alistair Darling proved he would follow the trend of hitting motorists in the pocket with his first budget, using that old chestnut 'environmental responsibility' as the justifier. Fuel duty would go up, as would VED. As ever, the green groups smiled and motoring groups sighed. Dacia's launch was subsequently cancelled, too.
April: Car sales buck credit crunch
The credit crunch was in full swing by April, so new car registrations for March were expected to go down as consumer confidence took a tumble. However, the opposite proved to be the case, buoyed largely by small car sales and diesels as buyers became even more environmentally aware - particularly after the green-tinted road tax change announced a month earlier. Meanwhile, after a long gestation period Vauxhall finally released the first official images of its Vectra replacement - the Insignia.
June: Honda makes first hydrogen car
'FCX Clarity' might not have succeeded in becoming a slightly misleading by-phrase for environmentally friendly motoring like 'Toyota Prius' has, but there's no doubt it's a seminal car. In June we reported that 200 Honda FCX Claritys were being built for customers in Japan and California, where the infrastructure exists to support the hydrogen-fuelled cars. Customers would be charged around £300 per month over three years to lease the vehicles, in which hydrogen is mixed with oxygen to create electricity and power the zero CO2 emissions car.
July: Unnamed Lotus revealed at last
'Project Eagle' test mules had been spotted around Lotus's Hethel production plant for some time before a solitary official picture emerged in July. The Evora was designed to seat four in comfort - including 'full-sized' Americans in the front seats - without compromising handling prowess. Powered by a 3.5-litre Toyota V6, the newcomer wasn't just a breath of fresh air because it was a new car from Lotus, but, ironically, because it was a new car that was not moulded exclusively by environmental or financial concerns. Yet it's mildly accessible. And it's British. Nice.
August: New road tax set to devalue used cars
August saw a flurry of new car launches, like the new VW Golf and Ford Ka - and even a £1m-plus supercar from Aston (the One-77). Yet most owners were finding the day-to-day running of their cars increasingly and worryingly expensive. The latest blow was the news that many older cars would be rendered unsellable by posthumous increases in road tax administered by the Government, with large automatic family cars hit hardest. Up to £800 million was wiped from the value of cars built between 2001 and 2006 at a stroke.
September: New car sales lowest since 1966
The most alarming car sales figures for some time showed that car sales had reached a 42-year low in August, dropping a massive 18.6 percent. The SMMT responded by urging the Government to take immediate steps to restore confidence in the flagging market, particularly as used car sales and values were taking a massive hit too. However, in keeping with the increasing trend towards small cars seen particularly in 2008, sales of superminis and city cars were up.
October: Obama urges action for the car industry
Rumours about the demise of the big three had been bubbling all year, with GM seemingly in the worst trouble, but it wasn't until the last quarter that the scale of the US car industry's woes really came into focus. GM was indeed in massive turmoil, with bosses claiming it may not survive until Christmas and prophesying untold doom for American industry itself should one of the 'Big Three' close down. It's an ongoing saga, and with the current US administration slow to help, the makers (GM in particular) are desperate for Obama's inauguration in January, who'll provide a more sympathetic ear.
November: New lows for motorists
November was a month of real highs and lows for motoring, and while the Big Three's woes were deepening across the pond, UK motorists finally had a reason to cheer as plummeting oil prices were finally making big differences at the pumps. Petrol dropped below £1 per litre, and even in December looks to keep heading in the right direction. Meanwhile, Ford sells its stake in Mazda back to the Japanese firm for 183 million Euros to raise cash, providing a glimmer of hope. 2008 has been a real rollercoaster year for both the driver and the industry itself. Who knows what will happen next? You're in the right place to find out!
