UK car production rises by 64.8%

Car production in the UK increased by 64.8% in January compared with a year earlier.

There was also an increase in the production of commercial vehicles (CV) - up 9.6% on January 2009, the Society of Motor Manufacturers and Traders (SMMT) said.

It's the biggest rise in car production since May 1976, while the CV increase is the second consecutive monthly rise.

The big rise, with a total of 101,190 cars being made in the UK last month, was expected after the industry was stuck deep in the recession this time last year.

With demand for new vehicles low, companies cut back on production at the beginning of 2009, with Honda ceasing manufacturing at its plant at Swindon in Wiltshire for four months from February to May.

It was not until later in the year, following a leap in sales sparked by the Government's car scrappage scheme, that car and CV production began to pick up.

The SMMT said UK engine production last month rose 26.3% compared with January 2009.

SMMT chief executive Paul Everitt added: "Vehicle and engine production rose for a third successive month in January, demonstrating the continued success of global scrappage incentive schemes.

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