It appears there may be some light at the end of the tunnel for ailing car manufacturers as the most recent vehicle production figures are released. The data, presented by the Society of Motor Manufacturers and Traders (SMMT), show that, while production levels are still on the decline, the pace at which they are declining is slowing.
The facts and figures
Car production figures for June 2009 are still down by 30.2% compared with this time last year, however this is an improvement on the 50.2% by which production is down so far this year. Export production is down by 28.3% this month compared with a 48.6% cut in the year-to-date. Export production in the UK accounts for almost four-fifths of all production.
While things may be looking up for car manufacturers, the outlook is still bleak for producers of commercial vehicles. Output this month is down by 60.4%, compared with a 64.5% shortfall during the rest of this year.
Could this be the beginning of the end of recession?
‘The UK motor industry is weathering the global recession and beginning the long road to recovery,’ SMMT chief executive Paul Everitt said. ‘As production volumes and registrations begin to stabilise, government must help to sustain consumer confidence and encourage banks to deliver credit that the industry needs’. So, while production figures begin to stabilise, we will have to wait to see whether manufacturers can translate the good news into new registrations.
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