Vehicle production will not increase until there is an unlocking of consumer credit, an expert asserts, which could affect motor traders with business insurance.
Neil Barlow, chief executive of the Northwest Automotive Alliance, state that predictions at the end of last year say output is to halve this year.
These estimations have been met as industry commentators have been unable to see a bottoming out of the market, he says.
He states that he is surprised that so little action is being taken to remedy this issue as the public are "accepting it", which could concern motor traders with business insurance.
Mr Barlow adds: "Until there is an unlocking of credit at the consumer end I think that production will remain at these low levels for the foreseeable future."
Recent figures published by the Society of Motor Manufacturers and Traders (SMMT) showed production in February fell by 71.6 per cent.
