UK vehicle output up 58.5% in Dec

UK: Vehicle output up 58.5% in Dec; down 31% for year

Author: Dave Leggett | 22 January 2010

Vauxhall's Ellesmere Port plant on Merseyside is getting a boost from the new Astra

The SMMT has announced that UK car production in December was up 58.5% on the same month of 2008 when volumes were exceptionally depressed.

December 2009 car production reached 85,316 units. A year earlier manufacturers were winding down production as demand slumped due to the impact of the international financial crisis.

For 2009 as a whole car production was down 30.9% on 2008 at 999,460 units.

UK car production this year was hit by lengthy furloughs and cuts to production by a number of manufacturers in the first half of the year as they sought to reduce stocks as demand slumped.

Looking on the bright side, the SMMT said that the December year-on-year rise to production - albeit off a very low base - was biggest rise since May 1976.

"The significant rise in December vehicle production is welcome news and signals some greater stability across global automotive markets," said SMMT chief executive Paul Everitt.

"We expect the year ahead to be extremely challenging, but the return of economic growth and a competitive exchange rate will help UK producers. Car and commercial vehicle production remain well below pre-recession levels and it is essential that there continues to be a focus on creating more and better priced finance for businesses and consumers."

UK commercial vehicle production in December was 7.271 units, 15.6% up on the same month in 2008. For 2009 as a whole, commercial vehicle production reached 90,679 units, 55.3% below 2008's tally.

The SMMT also announced that UK automotive engine manufacturers produced 2,053,456 engines in 2009.

Some 74.3% of all engines produced in the UK were exported.

Petrol engines accounted for 63% of total production versus 37% diesel.

"Despite the severe impact that the recession has had on the country's economy, there were twice as many engines built in the UK than new cars," said SMMT chief executive Paul Everitt.

"Most importantly, this underlines the significant role the UK plays in global automotive manufacturing and demonstrates the sheer scale of the motor industry in the UK."

Sectors: Vehicle manufacturing