By Ross Lebeter. Associate Consultant – Automotive Recruitment, JGA UK.
UK Motor Industry car sales are forecast to rise by over 7.5% to well over 2 million units this year. This is in comparison to the earlier prediction of a 5% downturn. This is according to a report from Moody’s Investors Service – a leading provider of credit rating, research and risk analysis.
In 2012, the UK Car Motor Industry saw 5.3% growth and is expected to rise by at least another 2% in 2014
In August 2013, Mike Baunton, who is currently interim CEO of the Society of Motor Manufacturers and Traders (SMMT), said: “We are starting to see slight signs of recovery from Europe which will support stronger production levels this year, and UK manufacturers will continue to build and develop innovative, high-quality products that appeal to a global customer base.”
If you have had chance to read the report, you will see that four of the major European can manufacturers; Fiat Chrysler, Ford Europe, GM Europe and Peugeot-Citroen are expecting to lose an estimated €5bn, combined, in 2013. This is mainly down to the fall of domesticated demands reaching their lowest point in the last two decades.
The report also indicated that in the emerging markets such as Russia and Brazil, the momentum is dropping too.
The risk and ratings agency has assigned a Ba3 rating for Fiat and a B1 rating for Peugeot-Citroën. Germany’s Volkswagen and France’s Renault could also see fall in their sales this year. (These are the Bond Credit Rating awarded to companies, outlining their creditworthiness).
British carmakers Jaguar Land Rover and Aston Martin, however are looking forward to the opposite and are anticipated to enhance their sales due to rise in consumer confidence.
Demand for cars in China is expected to play a key role in global car sales, which Moody’s estimates to grow by 3.2 per cent this year against earlier forecast of 2.3 per cent in February.
Ford Motor and General Motors are also expected to see fall in their sales this year.