Monday, 26 October 2009

Decline in Automotive Production Slows

More slightly positive news from the automotive industry this week: the decline in production has begun to slow down according to recent figures published by the SMMT. Whilst production levels are much lower than this time last year the deficit has reduced. Last month 16% fewer cars were produced in the UK than during September 2008. The Government's scrappage scheme is thought to have increased sales of new vehicles.

Production of vans has continued to shrink with only around 9000 commercial vehicles being built in September. This is almost half as many as during the same month last year. It seems that the scrappage scheme has been more of a success for private car sales than vans for sale.

Paul Everitt of the SMMT believes that these figures show that whilst the economy is improving businesses are hesitant when it comes to buying commercial vehicles:

"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."

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