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Motoring news

Higher sales fail to lift UK car production

20/11/2009

The number of vehicles produced in the UK is continuing to fall despite recent improvements in sales, latest industry figures reveal.

According to the Society of Motor Manufacturers and Traders (SMMT), 106,400 cars were produced in the UK during October, 6.7% fewer than during the same month last year. During the first 10 months of 2009 a total of 801,169 cars were built - down 38.1% on the same period in 2008.

And the output of commercial vehicles remains far lower than last year. In the same 10-month period, only 74,222 commercial vehicles were produced - 60% down on 2008.

The scrappage scheme covers cars and N1 class small vans up to 3,500kg, registered before the end of February 2000 and 2002 respectively.

Although the decline in October 2009 was the slowest seen this year, it comes after the fourth successive month of improved sales and other early signs of recovery in the industry.

Despite acknowledging that the UK output had fallen from already low levels seen in 2008, SMMT chief executive Paul Everitt said that the signs of recovery did offer some encouragement to UK producers, but warned that 2010 would be another difficult year.

"SMMT has asked the chancellor to use the pre-Budget report to help sustain and strengthen recovery," he said.

"Building business and consumer confidence will be key factors during the first half of 2010."

A spokesperson for the SMMT told Admiral News that "a lack of business confidence" was affecting commercial vehicle production, with firms forced to hold on to their existing vehicles instead of upgrading to a newer model.