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Motoring news

Car output recovery continues

21/05/2010

Car production has continued to recover this year, jumping by 44% in April in comparison to the same month in 2009, according to industry figures.

The Society of Motor Manufacturers and Traders (SMMT) revealed that 98,290 cars were produced last month, representing the sixth successive month of growth. It takes the number of cars produced this year to 414, 357 - a year-to-date increase of some 65%.

Meanwhile, commercial vehicles also posted a 41% increase, and engine production was 38% up.

However, the rises come in comparison to a terrible start to 2009, when the Government was coming under increasing pressure to introduce a scrappage scheme. Meanwhile, in a difficult first half of the year, UK production was hit by breaks at the Honda factory in Swindon - which only restarted limited production at the beginning of June.

In addition, the acceleration in production in April was not as pronounced as that shown in the SMMT's figures for March, which recorded a record monthly rise of 90% over the previous year.

Last month, SMMT chief executive Paul Everitt acknowledged that the industry would continue to face difficult conditions, pointing to the ending of the scrappage scheme and "limited access to finance and credit for consumers and businesses".

However, announcing the latest figures, he said that "a number of UK product launches and the introduction of new technologies" were offsetting the downturn in demand which was anticipated to follow the end of scrappage.

"Output in April is up across the car, commercial vehicle and engine sectors compared to the same time last year, reflecting a good start to the second quarter of 2010," he added.

"The home market saw a significant increase in the month, a positive indication of a strengthening economy and an improvement in consumer confidence."

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