MCIA CALLS FOR GOVERNMENT ACTION ON PTW END OF SERIES


April 3rd, 2020.


The Motorcycle Industry Association (MCIA) is demanding action from the Government with regard to Powered Two Wheeler (PTW) End of Series, and says the industry is facing a crisis.


The MCIA release, issued today, reads;

The Euro 5 product regulations for Powered Two Wheelers (PTWs) and other Powered Light Vehicles (PLVs), are scheduled to come into force for all new PTW registrations on 1st January 2021. However, still-applicable EU law allows so-called End of Series (EOS) provisions to allow the industry to clear limited numbers of unregistered Euro 4 stock beyond that date. End of Series was provided during the transition from Euro 3 to Euro 4 in January 2017.

But, so far, the Government has yet to announce Euro 4 End of Series, or the details of any ‘derogations’ that will be allowed. Decisions have been put off since MCIA, the body representing the PLV industry, first raised the matter with Ministers prior to the General Election, but with the Euro 4 deadline fast approaching and PTW businesses needing to plan ahead, MCIA is today calling on the Government to announce End of Series details immediately.

End of Series is important to the PTW/PLV market as, unlike cars, which are made using just-in-time techniques, the lower volumes of PTWs sold and the seasonality of the market, dictate that vehicles are produced in a block, usually representing the coming year’s anticipated demand. Inevitably, there is often a residue of unsold product at each year end that rolls into the following year. This is partly why the EU includes EOS in its regulations, but EU member states are free to announce their own individual EOS details, with this still applying to the UK while we are in transition, post-Brexit.
This year the exceptional circumstances caused by the Coronavirus have brought the PTW market to a near-standstill and it is unlikely that the traditional spring and summer demand peaks will be realised, resulting in large quantities of unsold product. As a result, the sector faces what could be a serious survival threat and therefore MCIA has called on the UK Government to first announce that End of Series will be introduced and second, take a lead during the Covid19 crisis by postponing End of Series by 12 months which will in turn allow Euro 4 vehicles to be produced and registered throughout 2021 with End of Series derogations taking place in 2022.

This would allow a further year to sell Euro 4 vehicles already in stock or yet to be produced due to COVID-19. A similar request has also been made to the EU by the European motorcycle industry body, ACEM.

It is important to point out that MCIA is not requesting a delay to the Introduction of Euro 5, but is asking for additional time to allow Euro 4 stocks to clear through the market.

MCIA CEO, Tony Campbell commented; “We have been seeking clarity from the Government on this matter for several months. In the meantime, our industry has been in limbo when it comes to Euro 5 transition planning. This has gone on long enough and we demand clarity from ministers right now, particularly as the current crisis is significantly affecting 2020 new vehicle sales. We are also seeking a one-year delay on EOS as a consequence of the crisis. Without this we estimate costs to industry running into tens of millions of pounds. Positive action from ministers is needed now.”

For more Motorcycle Industry Association news, head to www.mcia.co.uk
Home
About Us
Contact
Archive News
© Redcat Marketing Limited.
Privacy Policy