Staveley Head

November 22, 2010 01:01 ET

Are There Signs of Recovery in Commercial Vehicle Production?

MANCHESTER, UNITED KINGDOM--(Marketwire - Nov. 22, 2010) - The Society of Motor Manufacturers and Traders (SMMT) has released figures for the production in the UK of commercial vehicles during October which would appear to give some indication that the commercial vehicle market in this country is showing signs of improvement.

CV production in October grew by 47.1% compared with October 2009 and shows a 39% increase in total production for the year 2010 to date over the previous year. A total of 11,674 commercial vehicles rolled off the assembly lines during the month bringing the year's total to date to 103,201.

Although this is a significant improvement on the previous year it is a fact that the recession had a disastrous impact on CV production in 2009 when output fell to a record low for recent years. In 2007 production of commercial vehicles in the UK peaked at a record level of 215,686. By 2009, when the recession really started to bite, output had fallen to a staggering low of 90,679.

SMMT chief executive, Paul Everitt, commented, "It is extremely important that government continues to champion the role of vehicle manufacturing in rebalancing the national economy and works with the automotive industry to create conditions for increased investment in R&D, skills and capital equipment."

A spokesperson for Staveley Head van insurance, a leading comprehensive van insurance cover provider in the UK, said, "The total number of commercial vehicles on the roads in the UK has stayed steady over the last four or five years at around four million. This would seem to indicate that drivers are trying to get e few years more service out of their vehicles and when they do replace them they are looking at imported options more closely. CV operators have had a very difficult couple of years. Available business has declined and running costs have escalated due to increases in essentials such as diesel and taxes."

Car production in October was a little disappointing with only a 6% increase over October 2009, realising a 31.1% increase on the year to date. A total of 112,798 cars were produced of which 82.7% went for export.

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