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):
“Continuing its upward trend, car output in the UK rose 7% in July and is up 1.9% so far this year. Yet even better news is expected in the second half of 2013, as the decline in European car sales looks finally to have bottomed-out, with registrations of new cars in Europe rising 4.8% in July compared to the same month a year ago. Even austerity hit Spain, Portugal and Greece, where sales are roughly half pre-recession levels, showed double-digit gains. With the Eurozone back out of recession, consumer confidence is starting to improve, giving UK car manufacturers confidence that the second half of 2013 will see greater production volumes than the first.
“This news will cheer the UK’s car manufacturers currently enjoying their planned summer shutdowns. With strong UK car demand from private buyers continuing to drive UK car production, I expect UK car production will grow by 5% in 2013. This will make it the UK’s fourth consecutive year of growth, contrasting sharply with the rest of Europe, which is likely to endure its sixth straight year of production decline. 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.”
For further information please contact:
Bona Boraliu, KPMG Press Office
0207 6941482 or email@example.com
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.