UK Automotive Demonstrates A Remarkable Turnaround In Fortunes, Says KPMG
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.”