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Rise in British car production

UK car production saw a sharp rise in output during January, according to official figures released this week.

The Society of Motor Manufacturers and Traders (SMMT) compiled the latest statistics.

Car output was up 64.8% in January on the back of low volumes last year, giving the biggest gain since May 1976.

And commercial vehicle production was up by a significant 9.6%, the second consecutive monthly rise.

However, the number of new cars rolling out of UK factories has fallen significantly since the economic crisis struck in late 2008.

The SMMT says it is expecting 'modest growth' in 2010, compared to a 25 year low in 2009.

"Vehicle and engine production rose for a third successive month in January, demonstrating the continued success of global scrappage incentive schemes," said Paul Everitt, SMMT chief executive.

"Despite the close of the UK scheme next month, SMMT expects a modest recovery in 2010 output as economic growth, a competitive exchange rate and the introduction of innovative new models to UK plants help to lift manufacturing levels above those seen in 2009."

Posted on 19.02.2010
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