Ministers praise makers
January 22nd, 2010 by Richard Aucock
BUSINESS minister Ian Lucas MP has acknowledged car industry success with the latest UK production boost.
‘The automotive industry has had a difficult year, but industry and Government have taken action to help manage the challenges.’
The results of this can be seen in December’s rise in UK car production, offsetting a yearly total decline of 30 percent.
Key to this boost, he said, was scrappage. This ‘helped boost demand and even enabled some companies to boost production – like Nissan in Sunderland.’
But the rises in UK car production are not all down to scrappage, he added. There will be life after the imminent of the scrap scheme. ‘The end of 2009 saw some exciting developments for the industry in the UK.
‘Vauxhall and Honda began production of their new models, Toyota announced the UK would be the first European plant to produce its first hybrid Auris vehicle; and BMW announced that it will build two new Mini models at its Cowley plant.’
It means that the UK car industry should be positive about the future – there will be challenges, said a BIS spokesperson, but the car industry has already shown it knows how to deal with them.
‘The industry has had a tough year, and has responded well to the challenges. It is important to remember that the 2009 production figures reflect the extended shutdowns over the summer, which was a way of managing the downturn in demand without losing capacity.’
Now UK car production is getting back to normal, ministers are hoping for better times ahead.
Do you share their optimism for UK car production in 2010?
Tags: business, government, mp, production, scrappage, SMMT