Car production slumps 43% from 2008

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A total of 67,754 cars were made in the UK in May 2009 - a drop of 43% on the May 2008 figure, the Society of Motor Manufacturers and Traders (SMMT) said.

The previous four month-on-month falls had each been more than 50% and this was the least-steep reduction since November 2008.

However, commercial vehicle (CV) production in May 2009 was 73.5% - a much worse figure than in any recent month.

Last month the UK joined other European countries in introducing a Government "cash for bangers" car-scrappage scheme.

Earlier this week the Government said that more than 60,000 orders have been placed under the scheme since it was first announced in the Budget in April.

UK production was bound to fall sharply this year, with companies cutting back on manufacturing to match the downturn in new car sales. Honda shut down all production at its plant in Swindon in Wiltshire for four months, but restarted manufacturing there at the beginning of this month.

On Friday, SMMT chief executive Paul Everitt said: "Prompt action by manufacturers to realign supply with demand has been painful, but was necessary. There is now a direct link between demand in the marketplace and production volumes.

"The scrappage schemes in place across Europe are now beginning to have a positive impact, although the full benefits will take a little longer to flow down to companies at all levels in the supply chain."

Car production for the year so far (January-May) is 54% down compared with the first five months of 2008, while CV production has fallen 65.4%.