Friday, September 25, 2009
New car production falls 31.5%
The number of new cars made in the UK fell 31.5% in August from the same month a year earlier, industry figures have shown.
There were 56,737 vehicles made in the UK last month, the Society of Motor Manufacturers and Traders (SMMT) said.
But the number of cars built for the UK market reached a 4-year high as the car scrappage scheme boosted sales.
The SMMT called for the scheme, which was introduced in May, to be extended, saying recovery was still fragile.
The UK car scrappage scheme pays a £2,000 incentive to new car buyers who scrap a vehicle that is more than 10 years old.
It is currently due to end in February, or when the £300m the government has allocated towards the scheme runs out - whichever happens first.
The SMMT said the fund was likely to run out by the end of next month.
"The scrappage incentive scheme has had a positive impact on car production with one in three cars built in the UK last month for the home market and total volumes starting to stabilise," said SMMT chief executive Paul Everitt.
"However, underlying demand remains weak and the recovery is still extremely fragile. A continuation of the scrappage incentive scheme through to the original close date of 28 February 2010 would help to sustain growth and bridge uncertainties associated with the ending of VAT discount."
DATED: 25.09.09
FEED: AW
