Car production on the rise as recovery gathers pace again

CAR, engine and commercial vehicle production in British factories soared last year, providing more evidence of a recovery in manufacturing.

Firms built 1.27 million cars, up 27.1 per cent on the previous year, the Society of Motor Manufacturers and Traders (SMMT) said yesterday.

Commercial vehicle output also rose sharply, and was up 35.7 per cent last year to 123,019. Month-on-month figures also showed solid rises.

Despite a slip last month, UK engine output for 2010 - at 2.39 million units - was 16.2 per cent higher than in 2009.

More than three quarters of all cars and about 70 per cent of commercial vehicles were exported, with those figures rising even higher in the final month.

SMMT chief executive Paul Everitt said UK vehicle production was leading the manufacturing recovery.

He said: "UK manufacturers exported more than a million vehicles last year, underlining the competitiveness and desirability of the current model line-up.

"We expect further growth across automotive manufacturing this year as the industry continues to invest in new models and a variety of low carbon technologies."

But production last year was still well below pre-recession levels. The UK built about 1.5 million cars a year between 2005 and 2008, as well as more than 200,000 commercial vehicles.

According to the SMMT, the UK automotive industry has a combined turnover of 40 billion, accounts for 9 per cent of total UK exports and invests 1bn a year in R&D. In 2009, the top car manufacturers were Nissan and BMW-Mini.

Commercial vehicle production was given a boost recently after bus builder Alexander Dennis unveiled two orders for a total of 640 buses and coaches, worth some 65 million.