Car manufacturing slump continuing - News in brief - Evening Standard
       

Car manufacturing slump continuing

The UK car manufacturing slump is continuing, official figures due out are expected to show.

Data from the Society of Motor Manufacturers and Traders will reveal just how many cars and commercial vehicles were made in February.

With production cut back, and even halted, at some plants, last month's totals will be well down on the figure for February 2008.

The Honda motor company has halted all production at its plant in Swindon, Wiltshire, until June, while Ford is on a four-day week and some other plants are on three-day weeks.

Production figures for the first few months of last year were still good but an autumn downturn led to the year-end figures showing a 5.7% dip in car production in 2008 compared with 2007, with commercial vehicle (CV) production falling 5.9%.

With new car sales falling fast at the end of last year, car production in December 2008 was 47.5% down compared with December 2007, with CV production going down 56.7%.

There were even worse figures in January 2009, with car production falling 58.7% and CV production down nearly 60%.

The depth of the pit which the motor industry is in was demonstrated on Thursday when the SMMT announced that the 2010 British International Motor Show was being cancelled because the recession had made it "impossible for exhibitors to commit to a 2010 event".

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