Belfast Telegraph

Monday 22 December 2014

Scrappage incentive boosts car production

Car production last month accelerated sharply, rising 64.8% on the January 2009 total, it was announced yesterday.

Commercial vehicle production in January 2010 also rose — going up 9.6% compared with January 2009, the Society of Motor Manufacturers and Traders (SMMT) said.

The big rise, with a total of 101,190 cars being made in the UK last month, was expected as the industry was stuck deep in the recession this time last year.

With demand for new vehicles low, companies cut back on production at the beginning of 2009, with Honda ceasing manufacturing at its plant at Swindon in Wiltshire for four months from February to May.

It was not until later in the year, following a leap in sales sparked by the Government's car scrappage scheme, that production began to pick up.

The car production increase was the largest since May 1976, while the commercial vehicle production rise was the second consecutive monthly increase.

The SMMT said UK engine production last month rose 26.3% compared with January 2009.

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

“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.”

A Business Department spokesman said: “The January production figures show the benefits that the scrappage scheme is continuing to deliver to the automotive sector.

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? customercare@belfasttelegraph.co.uk

Comment

More

Company Profiles

More

Help & Advice

More

People on the move

More