Car industry 'can survive downturn'

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Official figures showed the number of cars made in the UK last month fell 59% compared with February 2008, while commercial vehicle production slumped by 71.6%.

The figures were published by the Society of Motor Manufacturers and Traders (SMMT) - 24 hours after it announced cancellation of the 2010 British International Motor Show because of the recession.

SMMT chief executive Paul Everitt said: "The large fall in February's vehicle production is a direct result of weak demand and the need to protect the highly-skilled workforce and valuable industrial capability in the UK automotive sector.

"We have seen action to encourage longer-term investment but still require Government support for short-time working, easier access to finance and credit and the implementation of a vehicle scrappage scheme."

The scrappage scheme - under which motorists would be paid to trade in their old cars for more eco-friendly models - has been introduced in a number of European countries. Lord Mandelson said last month that ministers were looking at such measures but no decision has been announced.

AA president Edmund King said: "These plummeting car production figures show the urgent need for a boost to this vital industry. Car scrappage schemes in countries such as Germany are already having a positive effect on sales."

Lord Mandelson, who visited the Nissan car plant in Sunderland, said: "The car manufacturers, their huge supply chain, are a cornerstone of our manufacturing sector.

"They employ very, very many people, so their survival is important, and they will survive, they will thrive in the future, as long as they make the right decisions now."