The Society of Motor Manufacturers and Traders (SMMT) released figures last week showing that only 4,692 commercial vehicles (vans and lorries) were built in Britain last month; the lowest level ever recorded. The production of vans and lorries has plunged by nearly 40% since April 2009 level and an amazing 73.5% since May 2008. During the first five months of 2009, only 34,642 vans have been built. This represents a fall in van production of some 65% from the same period last year.
SMMT Chief Executive, Paul Everitt, said: "Commercial vehicle (vans and lorries) production is severely affected by low business confidence and economic uncertainty [...] Businesses across the economy are still holding back on new expenditure and will need to see better access to finance and stronger domestic demand."
The impact of the recession on the van industry is clearly visible with van maker LDV twice slipping into administration and Ford deciding to transfer production of the Ford Transit van from Southampton to Turkey. Moreover, there are still growing fears for the future of van production jobs at Vauxhall's Luton plant amidst confusion surrounding Vauxhall's parent company, General Motors. The impact of the recession is so profound that the Guardian newspaper claims that "van production in the UK could soon be a thing of the past."
