UK: car output could miss forecast on slow exports image

According to the latest prediction coming from the Society of Motor Manufacturers and Traders (SMMT), British automotive production might miss its early forecast of full-year production total of 1.59 million units.

The SMMT decided to come back and rethink the full-year goal because of slowing car exports as overseas demand has weakened from the start of the year. According to the association, UK’s car manufacturing level dropped almost 7% in October to 150,060 vehicles. That’s a direct response to the exports dropping by more than 10%, as overseas demand represents four in five of all cars built in Great Britain. The weak demand was caused by falling interest accounted in key markets in western Europe and because of the ailing Russian market.

With October figures in the mix, total car production in the United Kingdom reached 1.28 million – a modest slide of 0.3% from the same ten-month period of 2013. Total automotive output in Britain reached 1.5 million autos last year, with around 50% of them going to countries in the European Union. “The UK’s car manufacturing industry is still in a strong position in spite of the growing uncertainty surrounding the global economy,” commented SMMT CEO Mike Hawes. He says new models are boosting gains, but weak foreign sales are to blame for the third monthly slip from 2013 figures.

Via Automotive News Europe