September 5, 2008 | posted by Michael Baxter in IABN |

1966 was a fine year, at least it was a good year for England. That was the year England won the World Cup. Also that year a bloke called David Jones changed his name to David Bowie, John Lennon said the Beatles were bigger than Jesus, the first ever episode of the Monkees was broadcast, and car sales in August were around 60,000.

Actually, the car industry never looked back, and sales never fell to that level again – never. But August 2008 came close, though. According to SMMT, car registrations in August were just 63,225, the worst August since 1966. That represents an 18.6 per cent fall on last August. In the year to date sales are 1,464,124, which is 3.8 per cent down on last year.

Intriguingly, though, the mini segment saw sales double last year, with the year to date up 37.1 per cent on the same period in 2007.

Sorry to harp on about this, but it is an important point. That car sales fell overall, but sales of small cars rose, is yet more evidence of how we are adjusting to the high price of oil. That is why it has been predicted here, that oil will fall back over the next couple of years.

Paul Everitt, SMMT chief executive said: “Industry is encouraged by the growing interest in lower carbon cars, but is concerned by the reluctance of consumers to commit to major purchases. There is a clear need for sustained action by government to boost the economy and restore confidence.”