UK car output down 6.7% on year

Figures published today by the Society of Motor Manufacturers and Traders (SMMT) revealed a fall in UK car production.

Car output declined 6.7% in October compared with a year ago, however, it was the smallest monthly drop this year.

According to the SMMT, there were 106,400 cars made in October and so far this year, 801,169 cars have been produced in the UK - 38.1% lower than a year ago.

The SMMT said the scrappage scheme continues to boost production. The scheme pays consumers £2,000 to get rid of their old cars and replace it with a more environmentally friendly car.

However, the production of commercial vehicles has slumped 60% in the year-to-date.

Earlier this month, the SMMT said sales of new cars grew by 32% in October compared with the same month in 2008, again boosted by the cash for bangers scheme.

Commenting on today’s figures, Paul Everitt, SMMT chief executive, said: “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.”

Richard Lambert, director general of the CBI, believes the Government should extend the scheme until the general election.

“Distributors in particular have had a great few months,” said Mr Lambert.

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