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22/01/2010
The UK car industry expects an "extremely challenging" year, as figures reveal that production slumped by 31% in 2009.
Even a 58% rise in December's production versus the same month in 2008 - the largest year-on-year rise since 1976 - was not enough to save 2009's overall figures, as the car market collapsed amid global recession.
In total, 999,460 cars were produced in the UK in 2009, according to the Society for Motor Manufacturers and Traders (SMMT), with 78% of these being exported.
Meanwhile, figures released last week show that UK car sales were 6.4% down in 2009 in comparison to the previous year, with the domestic market hit harder than the European average.
And although the Government scrappage scheme has been credited with helping to boost demand through a difficult year, production was nevertheless halted at some major UK plants.
Although SMMT chief executive Paul Everitt hailed December's hike in production as a signal of "some greater stability across global automotive markets", he sounded a note of caution for 2010's prospects.
"We expect the year ahead to be extremely challenging, but the return of economic growth and a competitive exchange rate will help UK producers," he said.
"Car and commercial vehicle production remain well below pre-recession levels and it is essential that there continues to be a focus on creating more and better-priced finance for businesses and consumers."
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