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Sharp fall in UK car production Sharp fall in UK car production
(10 minutes later)
New car production in the UK fell dramatically in January from a year earlier, according to the Society of Motor Manufacturers and Traders (SMMT).New car production in the UK fell dramatically in January from a year earlier, according to the Society of Motor Manufacturers and Traders (SMMT).
January production was 58.8% lower than in the same period in 2008, as plants closed for winter shutdowns. A total of 61,404 news cars were produced last month, 58.7% lower than January 2008, as plants closed for extended winter shutdowns.
Car firms have been hit by falling demand amid a wider economic slowdown.Car firms have been hit by falling demand amid a wider economic slowdown.
The SMMT said that the decline in vehicle output highlighted the need for more government measures to help the automobile industry. The SMMT said that the decline in vehicle output highlighted the need for more measures to help the industry.
SMMT chief executive Paul Everitt said that production for overseas markets, particularly Europe, had weathered the downturn better than production for the domestic market.
"European markets have been lifted by scrappage incentive schemes," he said.
"SMMT continues its call for a UK plan to boost the new vehicle market and support employment throughout the sector," he added.
A total of 51,272 new cars were made for export, down 54.2% from January last year. Domestic car production fell 72.3% to 10,132 vehicles.
Several car firms have had to cut jobs and reduce workers' hours in response to slowing demand.
Ford has said up to 850 UK workers at the firm would be offered voluntary redundancy packages.
And workers at Vauxhall car plants in Ellesmere Port and Luton are taking a cut in pay after agreement was reached to cut their working hours.