SMMT reveals fall in vehicle production

Latest figures from the Society of Motor Manufacturers and Traders (SMMT) have revealed a 31.5 per cent decrease in car production for August.

The figures showed that 56,737 cars were built in the UK with exported cars accounting for 37,564 of the total. Commercial vehicle production took a greater hit with new vehicle production down by 48.5 per cent to 4,821.

So far this year, car production has fallen by 44.6 per cent with commercial vehicle production down 62.7 per cent.

The SMMT has urged the government to extend the scrappage scheme to next February following fears that the fund would run out by the end of next month.

The scheme, which allows new car buyers to receive a £2,000 discount when scrapping a vehicle more than 10 years old, has been praised for boosting vehicle production of new cars over recent months.

Paul Everitt, chief executive of the SMMT, said: 'The scrappage incentive scheme has had a positive impact on car production, with one in three cars built in the UK last month for the home market and total volumes starting to stabilise.