British car production slumps 55% in April

Car production in Britain dived 55.3 per cent in April from a year earlier, the Society of Motor Manufacturers and Traders said yesterday, as factories put the brakes on output amid a deep global recession.

"Despite the current difficulties, the UK must prepare for the return of global growth and government support for the industry is an essential part of the process," said SMMT chief executive officer Paul Everitt.

In a bid to kickstart Britain's ailing auto industry, the government has introduced a scheme whereby 10-year-old cars can be scrapped in return for a £2,000 (€2,275) discount on a new model.

The government is contributing £1,000 per car while the industry provides a similar amount.

The initiative is scheduled to last until February 2010 or until the £300 million of government funding are used up. Britain's scheme is similar to ones introduced in France and Germany.

"With the scrappage incentive scheme fully operational, industry is optimistic about the positive impact this will have on the market and on UK production facilities," Mr Everitt said yesterday.

The global automaking sector is in crisis as consumers steer clear of buying vehicles amid the worst economic downturn since the 1930s.