April Car production down 55 percent

UK car production fell 55.3% in April, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

A total of 68,258 cars were made in April, with the total for the year to date about 251,268 cars.

In April, 56,267 cars were exported, a drop of 53.4%.

Overall vehicle production - including commercial vehicles - fell 56.5% to 75, 913 in April. Carmakers are cutting production as the recession takes hold.

Commercial vehicle production fell by 65.2% to 7,655 in April, with the year-to-date production down 63.6% at 29,950 vehicles.

The car sector has been one of the hardest hit by the global slowdown, as consumers cut back on big-ticket purchases, forcing global car companies to cut production and staffing levels.

Under a new government scheme, cars that are more than 10 years old can be scrapped in return for a £2,000 discount on a new model.

"With the scrappage incentive scheme fully operational, industry is optimistic about the positive impact this will have on the market and on UK production facilities," said Paul Everitt, SMMT chief executive.

While scrappage schemes in the UK and Europe may help, the SMMT warned that "recovery may be protracted".

"Despite the current difficulties, the UK must prepare for the return of global growth and government support for the industry is an essential part of the process." Source: BBC News