Car production falls but decline easing


The Society of Motor Manufacturers and Traders (SMMT) has today revealed a fall in car production but said the fall was eased by the car scrappage scheme.

According to the SMMT, there were 107,635 cars made in the UK in July 2009 - a fall of 17.9% compared with the same month a year earlier.

However, the fall was the smallest of the year to date and reflects the impact of scrappage schemes throughout Europe, said the SMMT.

Paul Everitt, SMMT chief executive, said: “The slowdown in the rate of decline of UK car production reflects the impact of the scrappage incentive schemes in place across Europe.”

“The UK motor industry is starting to stabilise but remains fragile,” added Mr Everitt.

Car production for the year to date is 45.8% down compared with 2008 levels, reflecting the manufacturing cutbacks by car makers earlier this year.

In the meantime, commercial vehicle production was still down on last year’s figures, falling by almost 60%.

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