Output in the UK car production market rose last month by 2.4% reaching 142,606, however, new car registrations fell by over a fifth according the Society of Motor Manufacturers and Traders. The industry has started to brace itself for a fall as the trend at the moment is such that manufacturers have been forced into introducing short-time working and scrap long-term projects.
The Chief Executive of the Society of Motor Manufacturers, Paul Everitt said: "We already know production is being scaled back to reflect demand in global markets and we will see this more clearly in the months ahead." Only about a fifth of vehicles produced in the UK are sold in the domestic market.
Two weeks ago, the Japanese manufacturer, Nissan decided to close one of its 2 production lines which operate in Sunderland; it is the latest manufacturer to pull back due to the recession.
Now the majority of automotive manufacturers throughout the UK have adopted policies that mean cutting production as the global recession gathers pace.
Everitt has recently urged the industry to keep and maintain its base skills including its investments in good people as well as research and development. Everitt speaks from experience as he has a long industry history and he knows that during times like these that training investments for staff and Research & Development divisions are the main areas that automotive manufacturers will cut back on. Everitt is keen to protect manufacturing capability for future essential growth in the industry.
He also said; "We don't want to lose valuable people and 18 months later find we are scrabbling round to find people again."
This is a concern for many in the industry and an open letter was published last week sent from the Business leaders of UK Commission for Employment and Skills which directly appealed to British manufacturing firms in their continued investment in training even during the difficult downturn.