John Leech, Head of Automotive for KPMG in the UK, comments on the increase in UK car production of 2.8% in July 2014. He said:
“UK car production continues to climb steadily, a trend we expect to continue for the next three years bolstered by exciting new launches such as the Jaguar XE and the new Vauxhall Astra. The figures show the price of cars exported by the UK has doubled in the past decade underlining how the UK has successfully moved up the value-chain to become predominantly a producer of luxury cars and higher-priced volume cars such as the Nissan Qashqai crossover. Other Western European countries will be looking enviously at the UK as these vehicles provide a stable and profitable platform giving suppliers the confidence to invest, which they are doing.
“The price of cars imported has increased only by 14% over the same period which when compared to the doubling in the price of exports means that the balance of payments in cars has swung from a deficit of £8 billion a decade ago to a surplus today. By 2017 we expect the surplus on the balance of payment for vehicles to have soared to £8 billion. This truly represents a remarkable turnaround in fortunes and is due to the strength of the UK’s vehicle brands and the most effective government-industry collaboration of any sector here in the UK.”
For press enquiries please contact:
Nahidur Rahman, KPMG Press Office
T: 020 7694 8812
M: 0788191 6975
KPMG Press Office: +44 (0) 207 694 8773
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.