The rate of decline in UK car production slowed significantly in July, according to the Society of Motor Manufacturers and Traders (SMMT), indicating that destocking initiatives are coming to an end.
There were 107,635 cars produced in UK factories last month – a 17.9 per cent fall on the same period in 2008. However, this was the smallest decline in 2009 so far.
Paul Everitt, SMMT chief executive, pointed to scrappage schemes across Europe as the biggest factor in the improved business conditions for automotive firms.
He added: “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.”
Commercial vehicle output is still struggling though and continues to decline sharply. Production of vans, trucks, busses, coaches and the like fell 59.8% in July, compared with last year’s figures.