Commercial vehicle production down, says one insurer

Van insurance news roundup: 7 days ending 11 nov  2012:

One commercial van insurance provider recently announced research findings indicating commercial vehicle production levels have dropped significantly this year.

Van insurance website VanQuoteDirect’s research study found that there was 7.5 per cent reduction in the number of commercial vehicles produced in the first nine months of 2011, which was blamed on a dwindling demand for vehicles such as vans. However, overall demand for commercial vehicles still remains relatively high, according to insurance company spokesman Joe de Vries.

Mr de Vries commented on the research findings, remarking that 2011 figures may have been higher due to the fact that January of 2012 was when the Low Emission Zone went into effect, causing many people to purchase new vehicles in preparation for the new emissions regulations. However, now that this deadline is long gone, new commercial vehicle purchases may have dropped off slightly as a result.

Mr de Vries added that VanQuoteDirect remained optimistic about the commercial vehicle market both in the UK and abroad, especially since demand for new vehicles on the Continent is expected to drive demand for British-built commercial vans. This will support the growth of vehicle manufacturers based in the UK and will have a knock-on effect for the insurance industry as well.

However, there is still much concern about the burgeoning eurozone crisis, both on its effects on the Continent and here at home, as a collapse would wreak havoc on our own sluggishly recovering economy. Hopefully demand for new commercial vehicles will drive economic growth and new manufacturing jobs, perhaps stemming what some are afraid will otherwise be the unending tide of economic ruin.

Increasing vehicle production as we move into 2013 is something to hope for very stridently, said Mr de Vries, who added that increases in production would aid the UK in its attempts to finish climbing out of the deep, deep economic hole it tumbled down into back in 2008 during the credit crisis.

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