• Pace of decline in vehicle production slowing to lowest level in 12 months.

• Scrappage demand boosts production for home market with almost one in four vehicles built, staying in the UK.

• Commercial vehicle output still suffering from a lack of business confidence.

Car production

“The rate of decline in new car production slowed to its lowest level in a year with the volume of vehicles being produced for the UK market comparatively high,” said Paul Everitt, SMMT chief executive. “Demand is clearly being underpinned by the scrappage incentive scheme and the extension to the scheme will ensure that demand continues into 2010.”

Commercial vehicle production

“The UK economy is slowly emerging from recession, but businesses remain reluctant to commit to large capital investments and this is reflected in low demand for commercial vehicles,” said Paul Everitt, SMMT chief executive.

Notes:
The Society of Motor Manufacturers and Traders (SMMT) is one of the largest and most influential trade associations in the UK. It supports the interests of the UK automotive industry at home and abroad, promoting a united position to government, stakeholders and the media.

The automotive industry is a vital part of the UK economy with £51 billion turnover and £10 billion value added. With over 800,000 jobs dependent on the industry, it accounts for 65% of total manufacturing turnover and invests £1 billion each year in R&D. In the last ten years, huge strides have been made to reduce the environmental impact of its products throughout the life cycle. Improvements in production processes mean energy used to produce each vehicle is down 24%, water use is down 45% and 57% less waste enters landfill sites. Average tailpipe CO2 emissions have also been slashed and are down 20% compared to 1999 levels. For more details, download SMMT’s tenth annual Sustainability Report or annual facts booklet from the SMMT website www.smmt.co.uk/publications.