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23/07/2010
UK car production levels rose by 28.6% in June, according to industry figures, in comparison to the same month last year.
According to the Society of Motor Manufacturers and Traders (SMMT), it is the eighth consecutive month that production has risen - though the increase was less marked than the 54% growth in May.
In total, 117,938 cars were produced in June, taking the year-to-date figure to 636,660 - an increase of 55% over the first half of 2009.
Meanwhile, commercial vehicle production rose by 24.9% and engine production by 18.1%.
However, SMMT chief executive Paul Everitt drew attention to the fact that the increases come in relation to an extremely weak 2009, which saw periods of inactivity and uncertain futures for some of the UK's largest plants.
Restating calls for investment over an uncertain second half to 2010, Everitt said: "Continued investment in new products and technology is helping to sustain growth for the sector while rising demand from export and home markets is maintaining momentum.
"The coming months remain uncertain and sustaining economic recovery in major markets around the world remains the industry’s top priority."
Meanwhile, McLaren executive chairman Ron Dennis told a House of Commons reception for heads of the UK automotive industry that the country needs to devote greater focus to the sector.
Adding that a "wrong turning" had been made by "policy-makers, opinion-formers, market-makers and pundits", who had prized "financial engineering" over "real engineering", Dennis said there was a need to "rebalance" the economy and reinvigorate manufacturing.
"To my mind, this debate is long overdue - 20 years overdue, probably," he added.
"A generation of graduates aspired only to climb onto the City bandwagon and make their fortunes.
"In the face of this, very few sectors of manufacturing and engineering in Britain managed to hold their own, let alone grow.
"Meanwhile, in Japan, companies such as Toyota, supported by government policy, have continued aggressively to reinvest in research and development."
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