British car output down 6.7% year-on-year

Car production fell 6.7 per cent on the year in October, the smallest monthly drop this year, the British Society of Motor Manufacturers and Traders said last Friday.

For the year to date, car production was 38.1 per cent lower than a year ago.

While car sales have been boosted by the government's scrappage incentive scheme, production has remained weak as many Britons have chosen to trade in their old vehicles for foreign made models. The production of commercial vehicles has been particularly hard hit by the economic downturn, falling 60 per cent in the year-to-date.

Paul Everitt, SMMT chief executive, said he was cheered by signs the world economy was pulling out of recession but said next year would remain challenging.

"The scrappage scheme and early signs of recovery in global markets offer some encouragement to UK vehicle producers, but 2010 is expected to be another difficult year for the industry."