John Leech, UK head of automotive at KPMG, comments: “UK manufacturing continues to buck the economic trend as the SMMT figures for April show that there were 11.8 % more cars built in the UK so far this year than in the same period last year. General Motors has also announced today that the Ellesmere Port plant will produce the new Astra which is welcoming news for the region and reflects an overall resilient UK motor industry.
“This announcement follows a series of similar notices by other motor manufacturers so that now all car plants in the UK have long-term production plans in place. But what is the reason for this outstanding success? Undoubtedly, the car firms, Government and unions have played a role as well as the UK’s heritage for making cars which means we have retained many of the skills that car companies are looking for, but a recent KPMG study* also showed that weaker Sterling and recent tax initiatives has made the UK the most cost-competitive of all developed countries for car production.
“Of course we should not rest on our laurels, the Eurozone crisis means that car companies and their supply chain should be making contingency plans for a possible Greek exit from the Euro. In particular, we recommend reviewing long-term supply contracts now with Greek suppliers. In addition, for those with operations in Greece, it is important to create buffer liquidity and inventory to deal with any transition to a new currency.”
Ends
Notes to editors:
*Competitive Alternatives Report: KPMG’s 2012 Guide to International Business Location Costs: http://www.competitivealternatives.com/ (pages 16 and 17)
For further information please contact:
Arti Mohan, Corporate Communications
Tel: 020 7694 8735
Mobile: 07768 858 085
Email: arti.mohan@kpmg.co.uk
KPMG Press Office: 020 7694 8773
About KPMG
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 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.
