Record Exports Boost UK Car Production in 2011

Jan 24 2012

According to industry figures, UK car production increased by 5.8% in 2011.  This was not the result of more UK motorists signing up for car finance deals though – it can largely be attributed to an increase in exports.

The Society of Motor Manufacturers and Traders says there was an increase of 1.6% in manufacturing during December, bringing the total for the year to 1,343,810 vehicles – 5.8% more than in 2010.

More than 80% of these vehicles were exported said the SMMT.  This is in stark contrast to local car sales, which dropped by 4.4% last year.

Despite a decline of 1.3% in December, production of car engines also increased last year and a total number of 2.5 million engines were produced.

The Chief Executive of the SMMT, Paul Everitt, said “UK vehicle and engine production continues to lead the manufacturing recovery.”

He added that it was vital for government and the motoring industry to continue working closely together so opportunities at all levels of the supply chain can be maximised and investment in new plant and machinery as well as in skills development can be encouraged.

Exporting more cars is obviously good for the UK economy.  It helps to create and sustain jobs and brings in foreign exchange.

About 740,000 people work in the UK motoring industry.  Close to 150,000 of them are employed in the manufacturing industry.  The rest, nearly 600,000, work in the servicing, supply and retail industries.

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