UK car production still on the slide

• Source: Shanghai Daily
• [09:11 June 22 2009]
• Comments

Monthly car production in the United Kingdom fell by nearly 1 percent in May, with the industry yet to benefit from government-backed incentive programs, the Society of Motor Manufacturers and Traders said June 19.

Production in May was 67,754 units, down from 68,258 in April. Some 80 percent were exported.

May production was 43 percent below May 2008.

"Prompt action by manufacturers to realign supply with demand has been painful, but was necessary," said Paul Everitt, the society's chief executive.

"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." Britain started its scheme in May. The government and manufacturers are splitting the cost of 2,000 pound (US$3,268) discounts to buyers who trade in a car at least 10 years old.

Commercial vehicle production remained depressed. May's output of 4,692 vehicles was 73.5 percent lower compared to a year ago.