Scrappage scheme eases decline

Car production in July recorded the smallest monthly decline of the year so far following positive affects of the government’s scrappage scheme.

The latest figures from the Society of Motor Manufacturers and Traders (SMMT) showed that UK car output fell 17.9 per cent last month to 107,635 vehicles with total vehicle production down 23.7 per cent.

According to the SMMT, the easing decline reflected the impact of the scappage scheme, which allows motorists to trade in vehicles that are 10 years old or older for a £2,000 allowance on a new car.

However, car production for the year was 45.8 per cent down on the same period in 2008 following significant production cutbacks from UK car manufacturers. SMMT chief executive, Paul Everitt warned that continued assistance was required to support companies.

‘The UK motor industry is starting to stabilise but remains fragile,’ he said. ‘Industry needs government to deliver support through the Automotive Assistance Programme and encourage banks to provide access to much needed finance and credit.’