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Car production halves

Written By Faye Sunderland Published On: Apr 24 2009
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Car production more than halved in March to bring quarter one volumes down 56.6 per cent, the Society of Motor Manufacturers and Traders revealed today.Commercial vehicle production fell by 63 per cent in the first quarter, after a further steep fall in March.However with the announcement of the introduction of the scrappage incentive scheme, the society hope this will stimulate vehicle demand. “The figures show that urgent action is necessary to kick-start demand in the motor industry and the introduction of a UK scrappage incentive scheme is an important first step,” said SMMT chief executive Paul Everitt.“Efforts to restore confidence and improve access to finance, particularly for companies in the supply chain, are key to sustaining our industrial capability. The motor industry has an essential role in the UK’s economic future, but it will be some months before we see any significant increase in output.”

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