UK automotive production down - but to recover next quarter

UK automotive production down - but to recover next

BMW, Mini, Nissan and Range Rover are some of a few models expected to forecast higher next quarter

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John Leech, KPMG’s UK Head of Automotive, comments on the UK car production figures for February published today by the SMMT. He said:

“UK car production in February 2014 fell 2.7 percent and year to date production is down 1.4 percent, but these downward trends are expected to reverse next quarter as plants ramp up production of recently launched models such as the BMW Mini, Nissan Qashqai and Range Rover Sport. Production in 2014 is forecast to be higher than 2013 and forthcoming vehicle launches should see UK vehicle production increasing by a third by 2017."  

“Investment in the supply chain continues as UK vehicle production plants continue to report difficulty in finding UK suppliers of a wide range of components, such as engine castings, steering systems and alloy wheels. This is sparking a surge in M&A and capital investment which we expect to continue for the foreseeable future.”


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About KPMG

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.


This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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