Car production dip lowest this year (From Hampshire Chronicle)

Car production dip lowest this year

12:06pm Friday 20th November 2009

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Car production fell last month, but the decline was the smallest this year, it has been announced.

A total of 106,400 cars were made in the UK in October 2009 - a drop of 6.7% on the October 2008 figure, the Society of Motor Manufacturers and Traders (SMMT) said.

Commercial vehicle (CV) production fell 39.5% last month.

Car production for the year so far is now down 38.1% compared with the January-October 2008 total. CV production is down 60.0% for the first 10 months of this year.

The Government's "cash for bangers" car scrappage scheme, introduced in May, has helped the motor industry, with new car sales now in positive territory and production levels picking up.

SMMT chief executive Paul Everitt said: "The rate of decline in UK car production continued to fall in October, against a weak 2008.

"The scrappage scheme and early signs of recovery in global markets offer some encouragement to UK vehicle producers, but 2010 is expected to be another difficult year for the industry."

He went on: "The SMMT has asked the Chancellor to use the pre-Budget report to help sustain and strengthen recovery. Building business and consumer confidence will be key factors during the first half of 2010."

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