Calls to extend car scrappage deal
Calls have been made for the car scrappage scheme to be extended as latest figures show that vehicle production fell by a third in August compared with the same period in 2008.
The Society of Motor Manufacturers and Traders revealed 56,737 cars were built in the UK last month, a 31.5% drop from 12 months ago.
The figures for the production of commercial vehicles were even worse, falling by 48.5%.
The SMMT data showed car production in the UK has fallen 44.6% so far this year, and 62.7% for commercial vehicles.
Chief executive Paul Everitt urged the Government to extend the scrappage scheme until February next year to "help sustain growth and bridge uncertainties associated with the ending of VAT discount". The scheme is due to end in mid-October.
Under the scheme, people can receive a £2,000 discount when scrapping a vehicle over 10 years old and buying a new one. It has been credited with slowing the decline of vehicle production.
The figures released by the SMMT showed 19,173 cars were built for the UK market in August, a 56-month high, while cars built for export were down by 37%.
Copyright © Press Association 2009
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