Figures compiled by the UK Office for National Statistics and the Society of Motor Manufacturers and Traders (SMMT) show that March and Q1 2002 car production rose 10.3 percent and 16.1 per cent respectively, despite the closures of Ford’s Dagenham Fiesta plant and GM’s century-old Vauxhall Vectra factory.
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UK factories built 147,820 cars in March and 449,567 in the first quarter of the year.
Production for the ‘home market’ – Society of Motor Manufacturers and Traders-speak for UK sales – increased 8.9 percent in March to 59,418 cars, while export output was up 11.2 percent to 88,402 units.
Increased production at the UK Honda, Toyota and Nissan plants appears to be offsetting the Ford and GM closures.
Honda is boosting production at its Swindon, Wiltshire plant from 80,000 vehicles in 2001 to 139,000 vehicles this year and, following a major expansion, last weekend shipped the first of this year’s expected 60,000 CRV SUVs to North America.
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By GlobalDataMeanwhile Toyota is ramping up output of the new European-market Corolla line at its factory near Derby, East Midlands, while it prepares to build the replacement for the ageing mid-size Avensis line later this year. As with the Corolla, the bulk of Avenis replacement output will be exported, mainly to mainland Europe.
Nissan, still ramping up production of the redesigned Primera at its Sunderland plant in north-east England, is also preparing to assemble a new generation Micra compact hatchback – which shares its platform with the next-generation Renault Clio – for launch in early 2003. Both ranges will, like their Toyota rivals, be mostly exported, again mainly to Europe.
“Total output for both the home and export markets is up [but] we should remember that the vast majority of vehicles built here are exported to mainland Europe,” said. SMMT chief executive Christopher Macgowan.
“If our industry is to continue to prosper, then its very own dragon – the strength of sterling [the UK pound] – must be tackled. This is a real threat to jobs in a key manufacturing sector and we urge the government to end the uncertainty over Britain’s entry to the euro.”
British van and truck exports rose 32.1 percent in March, the 10th consecutive month of growth, although total commercial vehicle (CV) production for the month dropped 10.8 percent to 15,853 units.
Home market output dropped a substantial 40 percent, for the sixth month in a row, and Q1 2002 production was also down – though by only 3.3 percent on Q1 2001 levels.
“Commercial vehicle (CV) production dipped a little in March,” Macgowan acknowledged, “but exports remain strong – up by 32 per cent.
“We still expect annual CV production to top last year’s total of 192,873 units.”
The SMMT said that the CV output drop largely reflects the recent structural changes at several UK plants, in particular Ford’s Dagenham plant east of London where, along with the axing of the Fiesta car range, Fiesta and (Fiesta-based) Courier van production has also now ceased as the facility becomes a key Ford diesel engine source.
Ford has shifted its UK light van production to Turkey though medium-size Transit vans are still built in Southampton, on England’s south coast, and at Genk in Belgium.
The Southampton plant builds front-wheel drive Transits and Genk assembles rear-drive models.
Ellesmere Port, the production home of GM’s Vauxhall/Opel Astra van, is now operating as a flexi-plant, and this week started building the new Opel-designed Vectra ahead of its UK launch in June. Astra van production volumes are expected to grow again once the car launch process is complete.
Production of the jointly-developed GM/Renault vans built at Luton – and sold with Renault, Opel, Vauxhall and Nissan badges across Europe – is now very nearly at full capacity, adding 6,593 units to the March total.
The 60 percent drop in Ford’s UK van production and the 57 percent fall in Astra van production at Ellesmere Port are reflected in the lower March CV production figures. Peugeot 206 van production at Ryton, near Coventry, also dropped 57 percent in March.
Production at Leyland Trucks, now the UK’s only volume truck plant, and Land Rover remained firm, the SMMT said.
The SMMT added that the small overall drop in March also reflects structural changes at two UK truck plants – ERF and Seddon Atkinson – and concluded that overall CV production volumes “should be balanced” toward the end of the year as Vauxhall’s van production increases at Ellesmere Port.
This was the 10th consecutive month of CV export growth, continuing the trend for UK commercial vehicle plants to build for specific sectors of the European market.
Production of the Renault/GM van is mainly for export and remains the major contributor to growth in this market.
Truck production is expected to grow, particularly around the 7.5 tonne range, driven by the successful launch of the new DAF LF range, built by Leyland for Europe.
