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In spite of rise in UK car production industry braces for a fall

The UK car industry is bracing for a fall in spite of 2.4% rise in car production last month. Industry produced 142,606 cars, although new registrations dropped by more than 20%, according to the Society of Motor Manufacturers and Traders.

SMMT chief executive Paul Everitt stated that production was being curtailed to reflect global market’s demand and it would be more prominent in the months ahead. According to him only 20% of vehicles built in the UK were being sold in domestic market.

This week Nissan announced cut in its UK output and closure of one of its two production lines in Sunderland plant for 2 weeks. Many automakers in the UK were adopting various measures to curb production to cope up with the global downturn.

Everitt admitted that it was not possible to predict to what extent companies would curtail production, but urged industry to safeguard its skill base and continue investing in research and development. He remarked that companies cut back on investment in R & D and employee training as the first measure to counter slump. He cautioned against this approach and suggested preservation of manufacturing capability.

An open letter, appealing British companies to continue investing in training during slowdown, was being published by the union leaders and businesses from the UK Commission for Employment and Skills. The appeal got backing from John Denham, Government’s  Skills Secretary.

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