04/10/2010
20,000 more cars rolled out of British factories in August than in the same month last year, according to the latest figures from the Society of Motor Manufacturers Traders (SMMT).
As reported by The Independent, this comes as further evidence that the manufacturing sector is rebounding, after statistics from the SMMT showed car output had grown by 37.3%. Commercial vehicle output also grew by 22% and engine production was boosted by 15% when compared with August 2009.
Part of the boost comes from the fact that over three-quarters of cars made in Britain are exported. The weak sterling makes Britain's exports more attractive to those in the eurozone, as they're cheaper when sterling is low. To date both car and commercial vehicle production are up 41% over the year, and engine production is 28% stronger.
It's not just Europe where production has been doing well, as Paul Everity, chief executive of the SMMT explained: "Production is doing better than anticipated, helped by premium brands selling well in China, India and, to a lesser extent, the US."
This is great news for the general economy too; the manufacturing industry is one of the key drivers of economic growth. The news hints at growing consumer confidence, as more people are committing to paying for new cars. With consistently positive news about the recovering economy, many businesses will look to expand their companies to make the most of growing spending. This can be achieved through sales finance, which boosts cash flow, and expanding into a successful market such as the automotive industry.
According to The Telegraph, Nissan was a major contributor to the positive figures. Their production jumped by 70% - an increase of more than 11,000 vehicles - as it converted a line of production at its Sunderland plant from the Nissan Micra to the new Duke model.
The news forced the SMMT to revise its forecast of the number of cars and commercial vehicles to be produced this year up from 1.09 million to 1.38 million.
Laura Nineham