Japanese quake could reverse UK car production growth

UK CAR production rose last month but is set to be hit soon by manufacturing cutbacks at earthquake-affected Japanese companies.

A total of 135,052 cars were produced in the UK last month - a 14.8 per cent increase on the March 2010 figure, the Society of Motor Manufacturers and Traders (SMMT) said yesterday.

Commercial vehicle production fell 6 per cent year-on-year to 12,267, while 249,757 engines were made in the UK in March, a rise of 6.5 per cent on the same month in 2010.

But the devastating Japanese earthquake has already resulted in Honda cutting back on production at its plant in Swindon, Wiltshire, in the face of a shortage of vital components.

Toyota has said it is reducing production during May at its plant in Burnaston, Derbyshire, to allow its Japanese supply chain to catch up.

SMMT chief executive Paul Everitt said: "The eighth consecutive monthly rise in car output and robust export demand indicate long-term strength and stability in the sector.

"However, recent announcements from UK-based manufacturers impacted by the Japanese earthquake are likely to see output drop in the short term."