UK Car Production in 2014 Highest Since 2007 - SMMT

(This article was originally published at 0001 GMT on Friday.)

By Ian Walker

LONDON--U.K. car manufacturing in 2014 was the highest in seven years, with December the strongest in a decade, an industry body said Friday.

For the year as a whole 1.53 million cars were manufactured, a rise of 1.2% compared with 2013. Of this, 108,721 were manufactured in December, 27% more than the 85,566 manufactured in the corresponding month in 2013, the U.K. Society of Motor Manufacturers and Traders said.

"Placed in context, 1.2% growth in U.K. car manufacturing in 2014 represents a very successful year. The industry has overcome various challenges, including a slower-than-expected EU recovery and weakness in some global markets," SMMT Chief Executive Mike Hawes said.

"More than GBP7 billion ($10.6 billion) of investment into U.K. production facilities has been announced in the past two years, and we are now seeing the effects as new models begin production--with more expected in 2015," Mr. Hawes added.

The industry was boosted last year by the launch of a number of new models by U.K. manufacturers, as well as a strong home market and recovering demand in Europe. Premium cars also have done well in emerging markets, especially the Far East.

New models that started being produced in Britain last year are the new Mini Hatch (three-door and five-door), Honda Civic Tourer, Nissan's new Qashqai and Juke, and the Rolls-Royce Wraith. In addition, production has recently started for the new Land Rover Discovery Sport and new Jaguar XE.

Of those manufactured in 2014, 1.2 million were exported, a fall of 0.5% compared with 2013. Around 78% of total cars produced in the U.K. were exported last year. Around 50% of those exported went to countries within the European Union, with the balance shipped elsewhere around the world. China's share of U.K. car exports has been growing in recent years.

The best performing manufacturer was Jaguar Land Rover, which produced 449,507 vehicles, a rise of 7.3% compared with 2013, while the worst was Honda, which produced 12% fewer cars after mothballing one of its plants. However, the largest manufacturer was still Nissan, which produced 500,238 cars, although this was 0.3% less than in 2013.

Industry experts have forecast that the U.K. will be making more than 2 million cars a year by 2017, higher than the all-time record of 1.92 million in 1972. No forecasts for 2015 have been issued yet.

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