KPMG comments on latest Society of Motor Manufacturers and Traders (SMMT) new car production figures
Mike Steventon, Partner with KPMG's automotive group comments on the latest SMMT figures.
"Although we have seen a significant improvement in new car sales in the UK over the last few months, vehicle production in the UK is still declining with car production down 38% on the prior year and commercial vehicles production down 60%.
"The principal reason for the discrepancy between recovering UK sales and declining car production is the scrappage scheme. Although the scrappage scheme has provided a much needed boost to the retail sector, the vast majority of cars sold under the scheme (over 90%) are imported vehicles and, as such, has provided no meaningful benefit to UK manufacturers and component suppliers. Indeed the majority of cars assembled in the UK are destined for export markets and it is not until there is a sustained improvement in global markets will UK car production recover."
-ENDS-
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KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with 11,500 partners and staff. The UK firm recorded a turnover of €2.2 billion in the year ended September 2008. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 148 countries and have more than 113,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. KPMG International provides no client services.