Market Slump on Continent Cuts Into U.K. Production

Falling demand from mainland Europe sees U.K. vehicle production fall 7% to 137,799 units in September.

The Society of Motor Manufacturers and Traders reports passenger-car output dropped 5.8% to 128,192 units, while commercial-vehicle builds dived 20.2% to 9,607.

The result left 9-month U.K. production down 7.8% to 1,165,591 units, with car output rising 10.2% to 1,083,276 and CV builds off 7.5% to 82,315.

U.K. engine production dropped 12.8% last month to 213,052 units, leaving the 9-month total down 0.4% to 1,882,303.

SMMT CEO Paul Everitt says declining demand for cars and vans across the major European markets impacted U.K. vehicle and engine production in September.

“The strong demand for U.K. products outside Europe and the investment committed by major vehicle manufacturers will secure future growth, although the coming months will be challenging for companies at all levels in the supply chain,” Everitt says in a statement.

“European governments must focus on securing financial stability and economic growth, or they risk long-term damage to key industries.”

SMMT data shows vehicle exports fell 9.9% in September to 107,471 units for a 9-month total down 8.5% to 936,761. Within this, car shipments dropped 8.9% to 102,365 for the month and declined 9.5% to 888,865 compared with a year ago.

CV production for overseas markets skidded 20.6% to 5,106 units last month for a year-to-date total down 7.5% to 47,896.

Engine production for export declined 13.2% from like-2011 to 1,180,596 units after September shipments tumbled 23.1% to 127,627.