Decline in car production slows

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The Independent Online

Car production fell last month but the decline was the smallest so far this year, it was announced today.

There were 91,718 cars produced in the UK in June 2009 - 30.2 per cent fewer than in the same month last year, the Society of Motor Manufacturers and Traders said.

This compared with falls of 43.0 per cent in May and 55.3 per cent in April.







Commercial vehicle (CV) production fell 60.4 per cent last month, but this was a smaller reduction than in May when the figure was down 73.5 per cent.

The Government's "cash for bangers" car-scrappage scheme has undoubtedly helped boost production. Also, the June figures have been swelled by the resumption of production by Honda at its plant in Swindon, Wiltshire, following a four-month halt.

Society of Motor Manufacturers and Traders chief executive Paul Everitt said: "The UK motor industry is weathering the global recession and beginning the long road to recovery.

"As production volumes and registrations begin to stabilise, Government must help to sustain consumer confidence and encourage banks to deliver the credit industry needs."

He went on: "CV production remains extremely low. This reflects the difficult economic conditions and fragile business confidence in key markets, particularly the road haulage and construction sectors."

The June figure took the year-to-date car production total to 410,740 - a 50.2 per cent drop on the January-June 2008 total.

CV production is now down 64.5 per cent for the year so far.



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