Car production finally rises

Posted on 18 Dec 2009 by The Manufacturer

UK car production rose for the first time in over a year last month bringing a brighter end to a gloomy 2009 for the automotive industry.

Aided by scrappage scheme’s across Europe and subsiding economic thrift, car output rose by 15.7 per cent in November, reports the Society of Motor Manufacturers and Traders (SMMT). This was its first rise since September 2008. Commercial vehicle production continued to fall though and despite the rise for cars SMMT chief executive Paul Everitt warned that the downturn may not yet have dealt the industry its final blow.

“Total vehicle production is still well below previous levels and 2010 is set to be another tough year with considerable uncertainty at home and abroad,” he said. “It is essential that governments continue to sustain and strengthen economic recovery, improving access to credit and encouraging investment in new technologies and products.”

The UK commercial vehicle sector has had even less to cheer about this year. LDV did not survive decade and neither, as recently announced, will roughly 25 per cent of the jobs at Vauxhall’s van making Luton plant.

“Weak demand in key sectors of the economy and fragile business confidence continues to stall recovery in commercial vehicle output. Production volumes have fallen in every month since September 2008,” said Everitt.

“Whilst the November figures represent the smallest recorded fall in the past 14 months, the sector is still down almost 60% on the year-to-date.”