Scrappage stems build fall
September 25th, 2009 by Richard Aucock
SMMT data just released shows that car production in the UK remains down – but by a lesser extent.
The figures for August show a 31.5 percent decline over 2008.
This sounds bad – but it’s a big improvement on the fall of 44.6 percent year-to-date. And it’s all thanks to the new car scrappage scheme, says the SMMT.
‘The scrappage incentive scheme has had a positive impact on car production,’ said SMMT chief Paul Everitt.
‘One in three cars built in the UK last month (was) for the home market, and total volumes (are) starting to stabilise.’
Indeed, the ‘cars built for the UK’ figure of 33.8 percent was the highest in a massive 56 months! UK car buyers really are snapping up home-built cars, such as the Nissan Micra, MINI, Vauxhall Astra and Toyota Auris.
There are still clear clouds though, warns Everitt. ‘Underlying demand remains weak and the recovery is still extremely fragile.
‘A continuation of the scrappage incentive scheme through to the original close date of 28 February 2010 would help to sustain growth and bridge uncertainties associated with the ending of VAT discount.’
Will Everitt get his wish? Over to you, Mandelson and the Government…
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Tags: new car scrap, production, scrappage, SMMT