Staveley Head

Staveley Head

August 20, 2010 01:00 ET

Ray Of Hope For Van Production

MANCHESTER, UNITED KINGDOM--(Marketwire - Aug. 20, 2010) - The latest figures released by the Society of Motor Manufacturers and Traders (SMMT) have given van manufacturers a small element of hope for the recovery of the market. New van registrations for the month of July was 17,309, up 25% on the corresponding month last year, and up 0.1% to 204,514 for the rolling year. New registrations for the calendar year to date are up 17.0% to a total of 124,579. Ford once again took the lion's share of the market in July with 4,966 sales, amounting to a 28.7% of the total sales with Volkswagen acquiring a 12.3% share with 2,135 sales.

New truck registrations also improved with 2,760 sales, a 9.1% increase over July 2009. However, registrations for the rolling year are still down 25.8% and also down 12.9% for the calendar year to date. Truck production for the remainder of 2010 is not expected to show any substantial improvement.

Paul Everitt, SMMT Chief Executive, said "The recovery in van registrations continues with truck figures also up. July was another surprisingly good month for vans, with useful growth. Truck registrations are up too, but against a very poor month last year. Whilst the forecast for 2011 is more positive, the prospects for the rest of the year are gloomy and we expect a near record low for trucks. Fragile consumer and business confidence make the outlook for the next 18 months challenging."

A spokesman for Staveley Head van insurance, one of the UK's leading providers, said "New van registrations have been steadily declining for over two years, from a high of something in the order of 340,000 in 2007/8 to around 200,000 for the last twelve months, so it's encouraging to see some signs that the market may be levelling out. Truck production, however, is a major cause for concern. We believe haulage is a barometer of the overall national economy. It is among the first to feel the effects of an oncoming recession, and one of the first to feel the benefit when that recession is lifting. The prediction that truck production is likely to worsen during the second half of 2010 is unlikely to inspire confidence in any of the business markets."

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