Car production best for 34 years
The UK’s beleaguered car industry has received a major boost with latest production figures showing a near 60% increase in the number of vehicles being made.
Car output in December was 58.5% according to the Society of Motor Manufacturers and Traders – the biggest rise since May 1976.
Experts have said it could be the clearest indication yet that Britain is emerging from recession.
The figures are perhaps an indication of how popular the Government’s scrappage scheme has been, while there is also thought to have been a last minute rush by UK car buyers to snap up a new vehicle before VAT levels went up again at the start of the year.
Whatever the reason, Paul Everitt, SMMT chief executive, said the news was welcome and an indication that some global stability was returning to the industry.
However, one expert in the West Midlands has cast doubt on the validity of the figures and whether the picture is as rosy as claimed.
Rachel Eade, head of automotive chain supply programme Accelerate, said: “While it’s good to see that car output is up, the 58% figure claimed does seem somewhat excessive when you think that December was only a three-week month and that the figure for November was 15%.
“Also, while the SMMT says that it is pleased with the figures, you have to remember that overall output is way down compared with just two years ago and it will be a while yet before we return to pre-recession figures.”
The drop in production for 2009 is an indication of how deeply the automotive industry has been in recession. According to the SMMT figures car production is down almost 31% on the year, while commercial vehicle output is more than 55% down on 2008.
Nevertheless, Ms Eade said that the thousands of people still employed in the West Midlands automotive supply sector would very pleased with the news.
In a statement to accompany the figures, Mr Everitt said: “The significant rise in December vehicle production is welcome news and signals some greater stability across global automotive markets.
“We expect the year ahead to be extremely challenging, but the return to economic growth and a competitive exchange rate will help UK producers.”
A key barometer for the economy as a whole, has been an increase in commercial vehicle production – up almost 16% in December, although still well down for the year.
If companies are looking to buy new fleets then that will be seen as very good news for the economy and an indication that business is picking up across the board.
