Boom for Nissan thanks to scrappage scheme

Jan 23 2010 by Will Green, The Journal

But overall car and commercial vehicle production in the UK slumped in 2009 amidst the recession, according to the Society of Motor Manufacturers and Traders (SMMT).

Despite excellent December 2009 results, the number of cars produced last year was 30.9% down on 2008.

In total, 999,460 cars were manufactured in the UK last year. Commercial vehicle production totalled 90,679 – a 55.3% drop on 2008.

The industry could at least take heart from the December 2009 figures which showed that car production rose 58.5% compared with December 2008 - the biggest monthly increase since May 1976.

Commercial vehicle production last month was up 15.6% compared with December 2008.

SMMT chief executive Paul Everitt said: “The significant rise in December vehicle production is welcome news and signals some greater stability across global automotive markets.

“We expect the year ahead to be extremely challenging, but the return of economic growth and a competitive exchange rate will help UK producers.

“Car and commercial vehicle production remain well below pre-recession levels and it is essential there continues to be a focus on creating more and better-priced finance for businesses and consumers.”

A Department for Business spokesman added: “The industry has had a tough year, and has responded well to the challenges. It is important to remember the 2009 production figures reflect the extended shutdowns over the summer, which was a way of managing the downturn in demand without losing capacity.

“The SMMT’s figures have consistently shown the Government’s scrappage scheme has boosted the industry.”