Trough in Car Output Won’t Dent Business Confidence, Growth – KPMG
The Society of Motor Manufacturers and Traders (SMMT) reported poor car production figures in August, but confidence and growth prospect among businesses would remain robust, says a professional firm.
Car output fell 8.9% in low-volume August, but remains up 12.7% year-to-date.
John Leech, UK head of automotive at KPMG, said: “Car production was down in August as car plants took the opportunity to extend their normal August shutdowns. This should help carmakers realign their inventories to a weaker than expected demand from the Eurozone.”
Leech said the “trough” was likely to take shorter time nonetheless, and that car production is expected to grow every year for the foreseeable future as recent and planned investments in UK original equipment manufacturers (OEMs) continue to bear fruit.
Leech continued: “It is worth stepping back and reminding ourselves of how far we have come. No other European country exports a bigger share of its production than the UK and most of our exports are to countries outside of the Eurozone, unlike our European counterparts. This will help to insulate the UK carmakers from the worst effects of the Eurozone crisis.
“Indeed all our major car plants have significant investment and new model plans. Our car industry has not been in better shape since the 1970s. British manufacturers are open for business and growth is on the agenda.”