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Thursday 13th of January 2011
February 18, 2010    

UK car production up 65% on year

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by Kay Murchie
”UK

Figures published today by the Society of Motor Manufacturers and Traders (SMMT) revealed a strong rise in UK car production for the month of January.

Car production surged 64.8% against the same month a year ago - this represents the biggest year-on-year increase in monthly production since May 1976, according to the SMMT.

The SMMT said there were 101,190 cars made in January, a rise of 15,874 compared with December.

The SMMT said the scrappage scheme continues to boost production. The scheme, dubbed ‘cash for bangers‘, was due to expire at the end of this month (or until funds ran out).

However, it has been extended for one month - until the end of March. The £400 million initiative, which was launched last May to boost the ailing car industry, pays drivers of cars at least 10 years old £2,000 off the price of a new vehicle. The £2,000 grant is made up of £1,000 from the Government and £1,000 from the carmaker.

Meanwhile, commenting on today’s figures, Paul Everitt, SMMT chief executive, said: “Vehicle and engine production rose for a third successive month in January, demonstrating the continued success of global scrappage incentive schemes.”

However, Nikki Rooke, of the SMMT, said today’s figures were good news but it should be noted that they are compared to January 2009, when many plants were closed in an extended shutdown.

Finally, for the 2009 year as a whole, 1,446,619 cars were produced - a fall of 5.7% on 2008.

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