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Monday 25th of January 2010
January 22, 2010    

UK car production falls 47.5% on year

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by Kay Murchie

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

Car output fell 47.5% in December compared with a year earlier, with 53,823 cars produced.

For the 2009 year as a whole, 1,446,619 cars were produced - a fall of 5.7% on the previous year.

The poor year-end figures from the SMMT has led the group to say that 2010 is going to be another tough year for the industry.

The scrappage scheme, which was introduced in May 2009, has provided a boost to the industry - particularly a rise in sales of new cars.

However, the scheme is due to expire soon and the industry is urging ministers to continue to support economic recovery.

The scheme pays consumers £2,000 to get rid of their old cars and replace it with a more environmentally friendly car.

Commenting on today’s figures, SMMT chief executive Paul Everitt, said: “The automotive industry is of strategic economic and social importance, reflected in the measures to support the industry being discussed by governments across Europe and around the world.

“We have been in close discussion with UK government on the urgent need to improve access to credit and kick-start demand in the market, in order to sustain valuable industrial capability during this exceptionally difficult period,” added Mr Everitt.

Business Secretary, Lord Peter Mandelson, is due to meet car makers within the next few weeks, where they will discuss their case for emergency support.

The industry employs around 800,000 people.

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