UK car production steadies

107,653 cars were produced in UK factories during July – 18% fewer than in the previous month – although the annual count was still a hefty 46% down at 518,375 for the year to date. Commercial vehicle output continues to decline sharply, with a 60% fall in July to 8,440 and a year to date drop of 645 to 51,614. Paul Everitt, chief executive at the Society of Motor Manufacturers and Retailers which monitors the figures, said: "The slowdown in the rate of decline of UK car production reflects the impact of the scrappage incentive schemes in place across Europe. The UK motor industry is starting to stabilise but remains fragile. Industry needs government to deliver support through the Automotive Assistance Programme and encourage banks to provide access to much needed finance and credit. "The commercial vehicle market is suffering from depressed demand across Europe. Furthermore, high stock levels mean that vehicle production may not recover as fast as the market."