British Car Production Decline is Easing

July's drop was 18% compared to June's 30% drop

British car output fell 17.9% in July from a year earlier but the pace of decline eased due to the government's scrappage scheme, the Society of Motor Manufacturers and Traders said on August 21.

July's decline was the smallest so far this year and followed a 30.2% drop in production in June on a 12-month basis, the SMMT said.

"The slowdown in the rate of decline of UK car production reflects the impact of the scrappage incentive schemes in place across Europe," SMMT chief executive Paul Everitt said. "The UK motor industry is starting to stabilise but remains fragile.

"Industry needs government to deliver support through the Automotive Assistance Program and encourage banks to provide access to much needed finance and credit."

In April, the government launched a scheme whereby cars of 10 years or older can be scrapped in return for a 2,000-pound (US$3,050) discount on a new model. The initiative, which is aimed at kick-starting Britain's troubled auto industry, is scheduled to last until February 2010. The government contributes 1,000 pounds per car while the industry provides a similar amount.

Copyright Agence France-Presse, 2009

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish