UK Car Production Falls In August

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British car production fell 31.5% year-on-year to 56,737 units in August, the Society of Motor Manufacturers and Traders said Friday.

Due to the car scrappage scheme, cars built for the UK market reached a 56-month high of 19,173, though it represented an annual fall of 15.9%.

"The scrappage incentive scheme has had a positive impact on car production with one in three cars built in the UK last month for the home market and total volumes starting to stabilize," said SMMT chief executive, Paul Everitt. "However, underlying demand remains weak and the recovery is still extremely fragile."

Everitt noted that a continuation of the scrappage incentive scheme through to the original close date of 28 February 2010 would help to sustain growth and bridge uncertainties associated with the ending of VAT discount.

Commercial vehicle output declined 48.5% in August over the previous year, the smallest drop of the year. "The continued fall in commercial vehicle output reflects ongoing weakness in the market," Everitt said.

British car production fell 31.5% year-on-year to 56,737 units in August, the Society of Motor Manufacturers and Traders said Friday. (Market News Provided by RTTNews)