According to reports from the
Society of Motor Manufacturers and Traders,
car production slumped by a record 59 per cent in February.
Last month, car firms cut thousands of jobs and slowed down their
production as the recession impacted strongly on new
car sales .
Paul Everitt, the chief executive of
SMMT, reportedly commented: The large fall in
February's vehicle production is a direct result of weak
demand.
Lord Mandelson, the Business Secretary, was reported in the news as
saying: We're going to make sure that where there are
firms that are viable going concerns - and in the vast majority of
cases they are - that they do have a future.
In response to the crisis, the Business Secretary has announced a
package of government support and suggested the implementation of a
scrapping scheme. The package of government support announced
in January is intended to help
car manufacturers struggle through this difficult period, but
car finance experts say that it could be too little, too
late.
