Car Production Down 59% in February
by Orlandy - March 20th, 2009.Filed under: Auto Industry.
The Society of Motor Manufacturers and Traders has found a 59% drop in production in February this year compared to the same time 12 months ago.
Of the 59,777 cars produced, 46,617 were for export and 13,160 were for the domestic market, a drop of 58 and 62% respectively.
The Auto Industry has taken a heavy battering in the global slowdown with many manufacturers cutting jobs and reducing working hours. The UK government has set aside over £2 billion in loans to help the car industry, but the SMMT is calling for an incentive to scrap old cars in favour of new one such as the one in Germany where a 21% rise in sales was recorded.
“We have seen action to encourage longer-term investment, but still require government support for short-time working, easier access to finance and credit and the implementation of a vehicle scrappage scheme,” said SMMT chief executive Paul Everitt.
In Germany, a €2500 bonus was paid to car owners who scrapped their cars of at least nine years old and bought new ones. They also had to be the owner of the car for at least one year. German manufacturers gained the most with a 63% gain in February orders.