Car production down
June 19th, 2009 by Richard Aucock
CAR production in the UK remained massively down in May, with a 43 percent drop in motors built in Britain.
However, says the SMMT, this is actually the smallest drop of the year.
They are ‘positive signs’, says the car industry body – and it’s down to the successful scrappage scheme encouraging manufacturers such as Honda to restart car production.
‘Prompt action by manufacturers to realign supply with demand has been painful, but was necessary,’ said SMMT chief Paul Everitt.
‘There is now a direct link between demand in the marketplace and production volumes.
It’s another scrappage success, he said. ‘The scrappage schemes in place across Europe are now beginning to have a positive impact, although the full benefits will take a little longer to flow down to companies at all levels in the supply chain.’
Sadly, commercial vehicle production figures remained gloomy. Van production was down a staggering 73.5 percent in May.
This is because of the ongoing recession, said Everitt. ‘Commercial vehicle production is severely affected by low business confidence and economic uncertainty.’
‘Businesses across the economy are still holding back on new expenditure and will need to see better access to finance and stronger domestic demand.’
Tags: car production, SMMT