UK car production plunged 59% in January

UK: Car production plunged 59% in January

Author: just-auto.com editorial team | 20 February 2009

New car production in Britain continues to plummet according to figures released today by the SMMT.

The SMMT said that UK car production in January reached 61,404 units - a decline of 58.7% on the same month last year. The decline reflected the impact of extended winter shutdowns at plants as firms sought to destock in response to lower orders and a deteriorating demand outlook.

Commercial vehicle production was down by a similar margin

Car production for the UK market was off a staggering 72.3% over last year to just over 10,100 units.

The scale of January's output decline will intensify calls from the industry in Britain for more support, including measures to ease credit access as well as a scrappage incentive to lift the market.

"Following extended winter shutdowns, vehicle output continued to fall in January in line with expectations. The extent of the decline highlights the critical need for further government action to deliver the measures already announced and ease access to finance and credit," said SMMT chief executive Paul Everitt.

"The proportion of cars exported peaked in January, evidence of the resilience of UK automotive manufacturing. European markets have been lifted by scrappage incentive schemes and SMMT continues its call for a UK plan to boost the new vehicle market and support employment throughout the sector. The motor industry reiterates its request for an urgent government response."

Sectors: Vehicle manufacturing