First-quarter figures from the SMMT show UK vehicle production is still falling
24 April 2009

UK car production took yet another dive last month, plummeting by more than 50 per cent year on year according to figures released today by the Society for Motor Manufacturers and Traders (SMMT).

The figures for March bring total UK car production for the first quarter of 2009 to 183,010, down 56.6 per cent on the same period in 2008.

The numbers show that the implementation of successful scrappage incentive schemes in several European countries have so far failed to have a noticeably positive effect on UK car production, despite the fact that three-quarters of cars built in the UK are exported.

The SMMT also says that it highlights the fact that still more needs to be done to stimulate domestic new car sales, and that the introduction of a scrappage scheme in the UK should only be the start of assistance for the industry.

Click here to read the full terms of the scrappage scheme, plus the full details of the 2009 Budget

Paul Everitt, the SMMT’s chief executive, said: “The figures show that urgent action is necessary to kick-start demand in the motor industry and the introduction of a UK scrappage incentive scheme is an important first step. Efforts to restore confidence and improve access to finance, particularly for companies in the supply chain, are key to sustaining our industrial capability.”

Matt Rigby

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