Staveley Head

October 26, 2010 07:01 ET

UK Van Manufacture Increases

MANCHESTER, UNITED KINGDOM--(Marketwire - Oct. 26, 2010) - Commercial vehicle output in September rose by 16.7%, helping to generate a 38.1% increase in the total production over the year to date. Car production has also increased by 35.0% over the year to date, but only experienced a 5.8% rise in September.

Some 91,527 commercial vehicles have been manufactured during 2010 of which 64,180 have been exported worldwide. This represents some 70% of the total output, a substantial contribution to the fragile economic recovery. Over 680,000 cars have been exported in the same period representing 72.8% of the 937,981 manufactured in total.

Paul Everitt, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT) the organisation which released the figures, said "UK vehicle production was up 6.6% in September with rises across the car, commercial vehicle and engine sectors, signalling continued improvement in the market." He went on to say that in the spending review announced on the 20th October the "Government outlined some tough decisions, but also committed a to a strong growth agenda. Support for low carbon vehicles, skills and R&D will all help to sustain and encourage investment in the UK motor industry."

Although the figures are encouraging, commercial vehicle output this year will still fall far short of the 200,000 plus levels that were constant in the years leading up to 2008. It was only the export market that kept the figures so attractive last month, as the number of commercial vehicles distributed to the UK market fell by 26.9% in September.

A spokesman for Staveley Head van insurance, one of the UK's leading insurance providers said "The market is still very fragile. We haven't yet seen any substantial upturn in the number of commercial vehicles used for either haulage or carriage of own goods. The market has levelled out, and hopefully we've already been through the worst effects of the recession, but there's still a very long climb to get back to where business and commerce were two years ago."

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