8.9% drop in UK car production

8.9% drop in UK car production

After a straight 13 months of increases in the number of cars built, production of new vehicles in the UK decreased by 8.9 per cent in August, based on figures released recently by the Society of Motor Manufacturers and Traders (SMMT).

August is however customarily a quiet month for the automotive manufacturing industry, with plant maintenance work being undertaken during the holiday period and other general upgrades to facilities. The SMMT is however certain that growth will pick up again in car production, despite the ongoing Eurozone crisis, as markets overseas are offering stronger demand for vehicles.

So far in 2012 the UK has produced 955,084 cars, of which 78,577 were built in August. This is boost of 12.7 per cent from 2011. An 18% rise in the amount of commercial vehicles produced bought their total for the month to 7,608. This is an overall rise of 11 per cent in 2012 so far, with 86,185 vehicles built, but a 7 per cent drop in August.

Ever since the financial crisis reared it's ugly head in the UK, the vehicle manufacturing industry has been at least one success story. Demand for cars from manufacturers like Jaguar Land Rover, especially from emerging and overseas markets, are fuelling expectations of record vehicle production levels by 2015.

The chief executive of SMMT, Paul Everitt, commented on the recently revealed figures: "Volumes are traditionally low and variable in August as manufacturers use the holiday period to undertake important maintenance and facility upgrades.

"Continued weak demand in Europe is a concern, although significant new investment and stronger demand from better performing global markets will ensure UK output continues on an upward trend."

It is thought that 60% of UK-produced commercial vehicles have been exported in 2012, along with 80% of cars produced here.

You can read SMMT's entire report here: http://www.smmt.co.uk/2012/09/smmt-uk-automotive-manufacturing-august-2012/

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