Friday, October 23, 2009

British car productivity fall slows

LONDON - CAR production in Britain drop by its smallest amount in a year last month, industry data showed on Friday, highlighting victory of the government's old-for-new scheme.

A sum of 119,616 cars were manufactured in Britain during September, a 16-percent fall out on the figure a year prior, the Society of Motor Manufacturers and Traders (SMMT) added in a statement.


That compared with a 31.5 per cent fall in August, demonstrating the success of the scheme which gives buyers who trade in old cars 2,000 pounds (S$4,569) to a new vehicle.


Business Secretary Peter Mandelson added last month the initiative, which was introduced in May and was primitively due to end in February, would be extended.


Car production for the year until now - at nearly 695,000 units - is down 41.2 per cent compared with the January to September 2008 period.


Paul Everitt, the chief executive of Society of Motor Manufacturers and Traders SMMT said: 'The rate of decline in new car production slow down to its lowest level in a year with the volume of vehicles being produced for the UK market relatively high. Demand is obviously being underpinned by the scrappage incentive scheme and the extension to the scheme will make sure that demand continues into 2010'.



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