UK car dealers slam government-backed ecommerce drive

UK car dealers are anger that the government will lend its support to online car import service, OneSwoop.com.

Patricia Hewitt, minister for small business and ecommerce, will next week attend the launch of the service, which lets UK consumers buy cheaper cars from continental Europe. OneSwoop.com says customers can save up to 30 per cent off UK car prices by using its service.

But retail car dealers aren't happy that the government is supporting OneSwoop with a ministerial appearance.

The Retail Motor Industry Federation said it was annoyed that a DTI minister will attend their competitor's launch seeing as the department hasn't acted on a Competition Commission report on UK car prices.

A DTI spokesman said the visit was in line with Hewitt's mandate to promote British ecommerce. He added: "The minister has said again and again that if you don't get online then you run the risk of having your competition take over your business."

A OneSwoop spokeswoman said this is not a controversial political move
for Hewitt.

"She's happy to support any Internet venture. It's based in London. This is just the government supporting freedom of choice, it gives UK consumers a better deal," she said.

Katherine Bennett, government affairs manager at Vauxhall, said: "I have to admit we're quite surprised she's doing that. But we welcome all types of competition, and we'd like to think that the government supports all our efforts as well."

Several companies have made forays into the online car import market recently, including Totalise.net and Virgin. The UK Consumers Association will launch a similar scheme at the end of next month.