8:59 am, June 16, 2011
Despite a blip in May, the picture surrounding the UK automotive industry is in fine form says the SMMT.
While car manufacturing fell by 4.9 per cent in May, production levels remain up 4.6 per cent over the first five months of 2011.
UK engine production also rose by four per cent in May and was up 5.6 per cent over the first five months of 2011.
However commerical vehicle output fell by five per cent in May and is down 5.5 per cent over the January to May period.
‘Despite the difficulties caused by supply shortages from Japan, UK automotive production dropped by just 4.9 per cent in May,’ said SMMT chief executive Paul Everitt.
‘Recent announcements demonstrate the commitment being made by global vehicle manufacturers to the UK motor industry. These will secure future production and jobs, as well as opening up new opportunities for the UK-based supply chain.’
The automotive manufacturing picture is in fine form due to a number of high-profile announcements in the first half of 2011.
In February the McLaren MP4-12C entered production, and in March Opel/Vauxhall committed to their Luton plant for the 2013 Vivaro light commercial vehicle.
While in April it was confirmed that the new MG6 GT and Magnette would be designed, engineered and finally assembled in the UK, and in June it was announced that the BMW Group and Nissan will invest in the UK for new facilities and products, safeguarding jobs.
John Leech, automotive partner at KPMG, said: ‘While headline car production in the UK fell in May with figures down by 4.9 per cent in the month, the major investments recently announced across the UK’s automotive sector demonstrates the significant role the UK continues to play within the automotive sector.
‘Driven by exports to Asia, which are predicted to see double digit growth for years to come, I anticipate component suppliers will also begin to make significant investment in the UK as they also ramp up their operations to deal with the demand.
‘All this good news means that the supply chain will receive a much needed boost and as a consequence I fully expect to see a jump in employment in this area.’
