Car manufacturing output falls by 4.9% in May

UK car manufacturing fell by 4.9% in May, but remains up 4.6% over the first five months of 2011 while UK engine production rose by 4.0% in May and was up 5.6% over the first five months of 2011.

Following the earthquake and tsunami in Japan, the SMMT forecast earlier this year that there would most likely be a decline in production in Britain because of supply shortages.

“Despite the difficulties caused by supply shortages from Japan, UK automotive production dropped by just 4.9% in May,” said SMMT Chief Executive Paul Everitt.

“Recent announcements demonstrate the commitment being made by global vehicle manufacturers to the UK motor industry. These will secure future production and jobs, as well as opening up new opportunities for the UK-based supply chain.”

Another factor that may be influencing this decline is the possibility that more people are considering long term car rental or simply buying a used car where in the past they may have purchased a brand new vehicle.