UK vehicle production in dramatic slump
Latest figures show production of cars almost halved...

Figures released by the Society of Motor Manufacturers and Traders show that UK car production declined by 47.5% in December, with figures for the full year of 2008 down 5.7%.

Production of commercial vehicles showed an even worse decline with production falling 56.7% in the month and full year down 5.9%.

The SMMT said that full year 2008 output for all vehicles was on par with 2006 levels, and that further declines were due.

“UK vehicle production figures for 2008 demonstrate both the strength of the sector and the very dramatic fall in demand in the last quarter. UK facilities are globally competitive with high productivity levels and hugely attractive model line-ups. Exports account for 75% of all UK vehicle production, serving more than 100 markets around the world,” said Paul Everitt, SMMT chief executive.

“The automotive industry is of strategic economic and social importance, reflected in the measures to support the industry being discussed by governments across Europe and around the world. SMMT has been in close discussion with UK government on the urgent need to improve access to credit and kick-start demand in the market, in order to sustain valuable industrial capability during this exceptionally difficult period. SMMT is looking forward to meeting with Lord Mandelson before the end of January to receive government's response to the proposals we submitted at our November meeting,” he continued.