Car production turnover rose 12%

Car production turnover rose 12%

New figures from a trade association reveal the car manufacturing sector enjoyed a turnover boost last year.

According to the Society of Motor Manufacturers and Traders (SMMT), turnover for 2011 increased to £55 billion, up 12% from the previous year. Its projected figures for the next three years predict it to rise further to an all-time high.

Last year saw an output of 1.46 million cars and commercial motors, a spike of 5.1% on figures recorded two years ago. This could reach record levels of two million vehicles by 2015, said the SMMT.

Cars for export also jumped 14% in 2011 and accounts for 81.6% of overall production numbers - valued in excess of £30 billion. The increase in manufacturing suggests more choice of vehicles for buyers andcar insurance policy holders.

SMMT chief executive Paul Everitt said: "The automotive industry is continuing to lead the country's economic recovery, increasing manufacturing output, delivering record turnover and exporting a greater proportion of cars than ever before, all while reducing our environmental footprint.

"In a tough economic climate, the automotive sector has continued to perform above expectations, demonstrating the significant role it has to play in a rebalanced economy."

Copyright Press Association 2012