Car production plummets by 55%
Figures released today by the Society of Motor Manufacturers and Traders (SMMT) have revealed a sharp fall in UK car production.
According to the SMMT, car production fell 55.3% in April compared with the same month in 2008. A total of 68,258 cars were made in April, while the total for the year to date is approximately 251,268 cars.
Furthermore, 56,267 cars were exported during the month – this represents a fall of 53.4%.
The global economic downturn has resulted in a slump in demand for big-ticket items, such as cars. This has affected carmakers worldwide with many cutting back on production, slashing jobs and seeking funding to see them through the downturn.
However, a bid to boost the fall in demand for new cars, the UK’s car-scrappage scheme came into force this week.
The scheme, which pays consumers to get rid of their old cars and replace it with a more environmentally friendly car, has been successful in overseas, particularly in Germany who reported a 40% increase in new car sales for March.
The £300 million initiative, which was announced in last month’s budget, will give motorists £2,000 when they scrap their vehicle (which must be at least 10 years old).
The Government will contribute £1,000, with the remaining £1,000 funded by car firms.
Although the scheme is voluntary, almost 40 car manufacturers are participating, which covers all the major brands.
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