Production figures released by the Office for National Statistics show that:

  • Car production in July 2000 fell by 15.5 per cent
  • Car production year to date (YTD) was down one per cent
  • CV production in July 2000 rose by 5.

    Car production

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  • Car production fell again in July, by 15.5 per cent as restructuring within UK plants began. Output for both home and export markets fell in July.
  • The recent declines have offset first quarter growth. Output over the first seven months of 2000 was one per cent down on last year’s level.

    Monthly Car Production, 1999-2000

    ‘Output fell in July, in line with our expectations. Home market output has been readjusting to the twice-yearly plate change. This has negated the need for a large summer build-up to meet the old August “sales bonanza.” However, the impact of the restructuring work at a number of UK plants is the principal reason for the decline in output this month,’ said Christopher Macgowan, SMMT Chief Executive. ‘Because several manufacturers are currently installing new production lines at their plants this decline is expected to continue during the second half of the year. Output is forecast to fall by six per cent for 2000 before beginning to increase in 2001 as these new models come on stream.’

    Commercial vehicle production

  • Total CV production this month increased to 13,790, the sixth consecutive monthly rise over 1999. Exports increased by 29.4 per cent but production for the home market fell six per cent.
  • CV production for YTD continued to outperform the first seven months of 1999 by 5.3 per cent. The export market increased by more than a third in the same period.

    Monthly CV Production, 1999-2000

    ‘In line with our forecasts, production for the domestic market has increased in the last two months. This should allay any fears of a downward trend in the domestic market. It is also the first encouraging sign of investment in UK sites. Exports continue to play a major part in keeping production levels over and above those experienced last year. Increased demand for particular models will continue to be an important factor in determining future production levels,’ commented Christopher Macgowan, SMMT Chief Executive.

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