Car production falls back as shortages bite

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The Independent Online

Car production fell by 4.9 per cent in May, according to new figures from the Society of Motor Manufacturers and Traders, with UK factories churning out a total of 99,280 units over the month. However, production remains up by 4.6 per cent over the first five months of 2011. Engine production was up by 4 per cent in May, and by 5.6 per cent.

"Despite the difficulties caused by supply shortages from Japan, UK automotive production dropped by just 4.9 per cent in May," the Society's chief executive, Paul Everitt, said.

"Recent announcements demonstrate the commitment being made by global vehicle manufacturers to the UK motor industry. These will secure future production and jobs, as well as opening up new opportunities for theUK-based supply chain."

Mr Everitt's assessment follows news that BMW will invest another £500m in its UK arm, including a boost to its Mini plant in Oxford.

The industry was also cheered by Nissan's plans to invest £200m to produce its new Qashqai model in the UK.