Airbag & Car Aircon Recall Bad News for the Industry

UK Car Manufacturing on the Rise

The first 9 months of 2014 has seen more than 1.13m cars produced in British factories – a figure which is up 0.6% on 2013. And, despite a dip in production in the month of September, this is still the strongest growth that the UKs car manufacturing industry has seen in 6 years.

According to the Society of Motor Manufacturers and Traders (SMMT), not only is the rise up 0.6% on the previous year, but the best performance over the time period since 2008.

This also runs alongside the news this year that new car sales in the UK were at a 10-year high in the month of September 2014. The SMMT said at the time that the strong September sales were due to the growing confidence in the economic recovery.

Car sales reached a high of 425,861 in September 2014, which was an increase of 5.6% when compared to the same time period last year and was being celebrated as the 31st consecutive monthly increase.

These sales figures were up on the same period in 2013 by 9.1% with September showing particular growth due to the new registration plate.

The SMMT chief executive Mike Hawes said at the time that “”September’s strong performance underlined the continuing robustness of the UK new car market, particularly in the context of last September’s bumper volumes.

“Demand for the new 64-plate has been boosted by intensifying confidence in the UK economy, with consumers attracted by a wide range of exciting, increasingly fuel-efficient, new cars.”

Despite the good news that car manufacturing has seen a rise so far in 2014, September actually saw a 2.8% fall in September compared with a year earlier. So what, with supply and demand and the sales increasing in September could be the cause of this dip in manufacturing?

The SMMT says the reason for the September output figures lies in the preparation for model changes – this meant that factories had to prepare with the re-tooling of production lines.

However, the fall also coincided with a dip in the UK’s main trading partner, the Eurozone. Of the 137,068 cars made, cars built for export stood at 102,947, which was down 8.1% on the previous year. Cars made for UK buyers stood at 34,121 – a figure up 17.7% perfectly reflecting the domestic demand for new cars.

On speaking about the new figures regarding UK car manufacturing, Mike Hawes explained, “The continued investment by the sector into new models means the September figures took a slight dip as some plants underwent re-tooling but it is these same new models which will help increase production volumes in the future.”