(PRWEB) April 17, 2009
Official figures released today show that car sales fell by over 30% in March compared to March 2008, increasing concerns for the future of both the UK and worldwide motor manufacturing industries.
A spokesman for Staveley Head, one of the UK's leading van insurance brokers, said "The motor industry acknowledged two weeks ago that car production fell by nearly 60% in the last year, and that output of commercial vehicles slumped even more reducing by nearly 72%. Commercial vehicle production is widely considered as the barometer for manufacturing and service industries and it is understandable, therefore, that these figures have caused alarm throughout all business sectors in the UK. In terms of hard figures this means that 300,000 vehicles have been lost from total production output in the last fourteen months."
This fall in output will not only hit the motor manufacturers and their component suppliers, but also the service suppliers which support the motor industry such as firms offering van insurance and credit facilities.
A rescue plan to save thousands of jobs at van manufacturer LDV and its suppliers recently collapsed when the company announced that a management buy-out is no longer an option. The company has not built any vehicles since before Christmas.
The Staveley Head spokesman went on to say " Just because vehicle production is down by 300,000 units doesn't mean there will be 300,000 less vehicles on the road. Companies and individuals will continue to use their existing vehicles for that much longer, although there will of course be some reduction due to company closures etc.
Our own assessment is that cheap van insurance will be the order of the day. People engaged in business have always looked for cheaper van insurance but never more-so than in this current economic climate."
Staveley Head is one of the leading insurance brokers in the UK, and will give you all the advice and assistance you need regarding this matter, including a very competitive motor trade insurance quote.