Mixed picture for automotive sector

New car demand fell in November to 134,027 units but, said the Society of Motor Manufacturers and Traders (SMMT), was some 5,000 units above forecast. New car registrations over the first 11 months of 2011 were down 4.5%, at 1,822,065 units as the market aimed to better a full year forecast of 1.923 million units. However, looking to 2012, David Raistrick, UK Manufacturing Industry leader for Deloitte, suggested that total new car registrations for 2012 could fall as low as 1,800,000. Raistrick pointed out that new car sales in Europe have slumped, with Germany being one of the only countries to have seen any significant increase. "Europe is also starting to see a growing mountain of new cars awaiting sale. Current estimates suggest that there may be as many as 3 million excess cars produced in Europe next year that have no global buyers for them. While the UK is not necessarily seeing the same levels of capacity yet, a continuous fall in consumer confidence and therefore new car sales could lead to a similar scenario in the next few months," he predicted. Meanwhile, a more encouraging picture was being painted by West Midlands automotive industry leaders celebrating having enjoyed a year of growth. The annual Manufacturing Advisory Service–West Midlands (MAS-WM) Auto Director's meeting heard that £1bn of new investment by global car manufacturers and a 31% increase in export orders had sent a wave of optimism throughout the supply chain, with early estimates suggesting the creation of 1500 jobs in 2011. The natural disasters seen in Japan and Thailand had raised concerns about security of supply and a number of vehicle manufacturers made conscious decisions to UK source. MAS-WM Auto's Rachel Eade commented: "What started as a year of uncertainty has turned into one of the most promising 12 month periods in the recent history of the UK automotive sector."