Government policies 'harming' car industry

THE boss of one of the largest automotive retailing groups in the country has warned that government policies are hurting the car market.

- BY TOM KEIGHLEY Business writer [e-mail]

Robert Forrester, chief executive of £5bn turnover Vertu Motors, used a speech to single out how the impact of the Zero Emission Vehicle (ZEV) target and proposed VAT levy on Motability vehicles for disabled people could harm supply and jobs.

The outspoken executive has previously criticised the ZEV mandate for "wreaking havoc" in the industry.

In his speech to The London Press Awards he said: "The policy had started to result in the rationing of new petrol vehicles, well before the well-publicised ban comes into effect. Governments of both colours supported environmental rules that favour electric vehicles, doing so because of the eco-zeitgeist rather than practical reality.