Figures released today by the Society of Motor Manufacturers and Traders showed that car output fell 2% in Q1 2013, following a weaker than expected March where volumes fell 6%.
John Leech, UK Head of Automotive at KPMG comments: “With new cars sales falling off a cliff in Germany, France and Italy, it is not a surprise that the UK’s volume car plants have taken the opportunity to extend Easter shutdowns. At the moment, with continental car markets in freefall, it is hard to predict how long UK car production will be impacted. Of course we are faring much better than our European neighbours, since the UK is relatively insulated to falling Eurozone demand because our premium car plants such as JLR and Mini export to fast-growing emerging markets.
“In addition, UK vehicle plants will launch new models in 2013, such as the Range Rover Sport, which should see production recovering towards the end of the year. Our medium-term forecast remains positive, with UK vehicle production set to grow from about 1.5 million to 1.9 million in 2016 based on manufacturers’ latest plans.”
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Notes to editors:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.