Skip To The Main Content

Car production figures 'to decline'

by  | 

An announcement of the latest car production figures is likely to show a sharp decrease, with the effects of the "cash for bangers" government car-scrappage scheme not having making an impact.

The scheme will not make an impression on the May 2009 commercial vehicle (CV) and car production totals which are released by the Society of Motor Manufacturers and Traders (SMMT), as it was only introduced on May 18.

Since its announcement at the Budget in April the scheme has attracted more than 60,000 vehicle orders, according to a government announcement.

Car production in April was down 55.3% and CV production fell 65.2%. Decreases like this in recent months have directly affected jobs and manufacturing which have suffered following a lack of new car sales.

The car industry can however look forward to the restarting of manufacturing at the Honda plant in Swindon, Wiltshire, which should increase production figures alongside the "cash for bangers" scheme.

Japanese company Honda started the assembly line again on June 1 after a four-month production break.

© Press Association 2009