New car sales climb for 11th successive month

News Article - 15 June 2010
Category: Business

The automotive industry has experienced an increase in new car sales for the 11^th month in a row in May, continuing its economic recovery and lending optimism to the British economy as a whole. The Society of Motor Manufacturers and Traders (SMMT) reports that registrations were up 13.5% to 153,095 on May 2009 figures, although this is still 4.6% down on 2008 levels.

In addition the sector experienced a 22% rise in volumes over the first five months of this year. However, analysts have put this down to the scrappage scheme which ended in March, and predict full year registrations to dip slightly in 2010. The scrappage scheme was introduced in the 2009 Budget to provide financial support for the automotive industry and increase consumer willingness to invest in new vehicles.

Whilst the figures provided by the SMMT reveal a positive start to the year for the automotive industry, industry experts predict the rest of the year to be extremely challenging, and have called on the Government to promote consumer and business confidence in order to drive demand. Tax reforms are likely to be introduced in the emergency Budget that should be well-received for supporting industry growth.

The car industry suffered heavily during the recession, with many businesses resorting to massive staff redundancies and factory closures to stave off bankruptcy. Substantial increases in the price of petrol and associated fuels also led to reduced demand for high-value vehicles such as 4x4s, heavily impacting the bottom line of many major car manufacturers. Jaguar Land Rover sought a $1.5bn loan from the Government to keep it afloat, and was subsequently taken over by Tata Motors in a bailout deal.

Manufacturing companies will no doubt be considering the most beneficial way to take advantage of improving market conditions whilst also remaining cautious of economic whirlwinds that could quickly cause problems. One of the most efficient ways to compete more effectively is strengthening internal systems to develop more accurate financial control of major projects.

Access project and job costing software allows manufacturing companies to more accurately cost up projects, ensuring orders are fulfilled on time and within budget. Issues that may cause an overspend can be flagged up automatically, helping to ensure companies do not struggle with runaway budgets and the associated financial risks.

For more information, please call Access on 0845 345 3300.

Article keywords: Access project and job costing software, manufacturing companies, automotive industry, Society of Motor Manufacturers and Traders, SMMT, car scrappage scheme, emergency Budget, car manufacturers, car manufacturing, Jaguar Land Rover, Tata Motors

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