UK Car Market Through to the Other Side?

In recent news there has been record breaking sales and production figures for the UK, so the question is, is the UK Car Market Through to the Other Side of Recession?

While the European market continues to slump and decrease in terms of demand and sales, the UK has seen an increase in both leading to the rise in demand for cars. All in all UK factories built 1.46 million cars in 2012 and the sales of new cars rose 5.3% compared to 2011.

It has been well documented that the European Market has been in a slump for sometime and whilst people hope it will get better in 2013 it is not likely that it will. Market trade experts have indicated that the market will remain in a depressed state for at least another two years.

Nissan Sunderland also broke the record for the amount of cars produced in one year having exceeded the 500,000 model target.

On the other hand, Honda have announced a job cut in the UK of up to 800 staff, Ford have announced a closure of a plant in Dagenham whilst Vauxhall have resorted to a four day working week for the staff at the Ellesmere Port plant. The UK will continue to feel the effects of the European slump as both the demand decreases and the value of exchange rates continue to fluctuate.

Although, production figures have exceeded all expectation and records, the UK economy has not seen any benefit from the models due to the high percentage of models being shipped abroad. The recent job cuts will cancel out the amount of new jobs been invested in, in Nissan Sunderland and Vauxhall Ellesmere Port.

The UK car market may be on the up, but the UK economy may not be reaping the awards. Hopefully, in the future the UK car market will help the economy regain its rightful state. The year of 2013 looks promising for both the economy and car sales in the UK as manufacturers across the globe look to make up for the losses they suffered in 2012.

The production of cars will be essential to the growth of the economy as they look to develop more in the UK, than ever before and by ever before I mean the year of 2012. With all this taken into account, is the UK car market through to the other side just yet?