Car manufacturing slowed again during August,
taking the total number of
cars being built down by over 30% this year. The Society of
Motor Manufacturing and Traders (SMMT) indicated that the
downturn may be fully felt in the
car industry, following 15 months of declines.
The chief executive of SMMT, Paul Everitt, made it clear that
underlying demand for
new vehicles was very weak, with any recovery a fragile
blessing. With the
car scrappage scheme due to end shortly, and a VAT increase of
2.5% due in December, the outlook is bleak.
Everitt was reported in
car finance news as commenting: 'The
scrappage incentive scheme has had a positive impact. A
continuation of the 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.'
