Sharp fall in UK car production

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Figures released by the Society of Motor Manufacturers and Traders (SMMT) show the number of new cars made in the UK fell 43 per cent in May compared with the same month last year, while production of commercial vehicles fell 73 per cent.   With several manufacturers having temporarily closed factories, or reduced production to use up their stock, only 67,754 cars were made in the UK in the month.   In the first five months of 2009, car production was 319,022, down 54 per cent compared with the same period last year.   "Prompt action by manufacturers to realign supply with demand has been painful, but was necessary,ÔÇØ said Paul Everitt, chief executive of the SMMT. ÔÇ£There is now a direct link between demand in the marketplace and production volumes."   Demand for commercial vehiclesÔÇömainly vans and lorriesÔÇöhad been hit by "low business confidence", he added. "Businesses across the economy are still holding back on new expenditure and will need to see better access to finance and stronger domestic demand."   Government figures released earlier this week showed that more than 60,000 orders for cars had been placed under the UK's scrappage subsidy scheme since the initiative was announced.   Under the scheme, car buyers are given a ┬ú2,000 discount on a new car if they scrap one that is at least 10 years old, of which they have been the registered keeper for a minimum of twelve months.   The government has earmarked ┬ú300 million to pay for the scheme, which could benefit up to 300,000 customers by March 2010, when it is scheduled to end.   Half of the funding for the scheme is coming from the government, with manufacturers stumping up the remainder.     *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *