John Leech, UK head of automotive at KPMG, comments on the car production data released today by the Society of Motor Manufacturers and Traders (SMMT):
“Car output in the UK rose 10.4pc in June and is up 1.1pc in the first half. Meanwhile, new car sales in Europe fell, by 6.3% in June, although the rate of decline slowed. There is consensus that car production in Europe will shrink for the sixth successive year, and hit a 20 year low. While we expect further European government initiatives to boost production, such as the PIVE scrappage scheme in Spain, which was extended in April 2013, there is unlikely to be any recovery this year.
“With strong UK car demand from private buyers driving UK car production, I still expect UK car production will grow again in 2013 notwithstanding the challenges presented by our major export market. This will make it the fourth consecutive year of growth, contrasting sharply with the rest of Europe. Our medium-term forecast also 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.