Drop in car production figures

Fri, 19 Jun 2009



According to reports from the Society of Motor Manufacturers and Traders, the number of new vehicles in the UK slumped by 43 per cent during May, when compared to stats from the year before. The drop took production down to 67,754 cars . Meanwhile, production of commercial vehicles dived by some 73.5%.

Many companies have temporarily shut down their production or cut back. The positive impacts of the car scrapping scheme will take a while to filter into the market.

The chief executive of the SMMT, Paul Everitt, reportedly commented: "Prompt action by manufacturers to realign supply with demand has been painful, but was necessary. There is now a direct link between demand in the marketplace and production volumes. Businesses across the economy are still holding back on new expenditure and will need to see better access to finance and stronger domestic demand. The scrappage schemes in place across Europe are now beginning to have a positive impact, although the full benefits will take a little longer to flow down to companies at all levels in the supply chain."
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