Car production still in reverse, but there are signs of recovery

Published on Friday 20 November 2009 21:20

CAR production in the UK reversed last month, but the decline was the smallest this year, figures yesterday revealed.

A total of 106,400 cars were made in October 2009 – a drop of 6.7 per cent on the October 2008 figure, the Society of Motor Manufacturers and Traders (SMMT) said. Commercial vehicle production fell 39.5 per cent last month.

Car production for the year so far is now down 38.1 per cent compared with the January-October 2008 total. Commercial production is down 60 per cent for the first ten months of this year.

The government's "cash for bangers" scrappage scheme, introduced in May, has helped the motor industry, with new car sales now in positive territory and production levels picking up.

SMMT chief executive Paul Everitt 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.

"The SMMT has asked the Chancellor to use the Pre-Budget Report to help sustain and strengthen recovery. Building business and consumer confidence will be key factors during the first half of 2010."

A government spokesman said: "The scrappage scheme will remain limited and will close at the end of February or when the money runs out, whichever is the sooner. We have no plans to extend the scheme further."

&#149 Dutch luxury car maker Spyker is reported to be ready to shift manufacturing to Coventry-based CPP, which already supplies parts to the firm.