Car production leapt 27% in 2010
THE UK car industry has been buoyed by latest figures which show the industry grew by more than 27% last year.
The Society of Motor Manufacturers and Traders said the UK car industry produced 1.27m vehicles last year, with December proving one of the most productive months – up more than 10% on the same period in 2009.
In the North West the major automotive manufacturers are Vauxhall at Ellesmere Port; Land Rover at Halewood, Merseyside and Bentley in Crewe.
Oddly, the figures for last month were not reflected in sales as customers stayed away from the garages, mainly due to the bad weather.
However, the society said that overall the figures were good news for the industry.
The recovery was not confined to the car industry as commercial vehicle production grew by almost 36%, with 123,019 units. The December figure was again up on 2009, this time by 19.4%.
As a consequence of the growth, UK engine output also rose – up 16.2% for the year at 2.39 million units. However, December saw a slight blip as production slipped 1.4% compared with the same month in 2009.
Paul Everitt, chief executive of the SMMT, said: “UK vehicle production is leading the manufacturing recovery with output in 2010 up 27.8%. UK manufacturers exported more than a million vehicles last year underlining the competitiveness and desirability of the current model line-up.”
However, production levels have yet to return to pre-recession levels. Total production, which includes both car and commercial vehicles, was 1.39 million, which compares with 1.75 million vehicles in 2007 and 1.65 million in 2008.
The car figures went some way towards offsetting news from the CBI that UK factory orders fell in January.
The business organisation’s quarterly industrial trends survey showed a drop in its total order book balance to -16% this month compared with -3% in December.
Despite the drop, the CBI said maintained its stance that the recovery in the manufacturing sector was firmly in place.
However, it has warned that inflationary pressure from rising fuel and energy costs, the VAT increase and public sector cutbacks could impact on performance as 2011 progressed.
