UK car output up for first time in more than a year

UK car production rose by 15.7% in November compared with a year earlier, the first increase in more than a year, industry figures have shown.

There were 112,948 cars made last month, the Society of Motor Manufacturers and Traders (SMMT) said.

It put the rise down to the continuing impact of the car scrappage scheme and increased stability in major European car markets.

But the SMMT warned that next year would be "tough" for manufacturers.

So far this year, 914,117 cars have been made, which is down 34.4% on the same point a year ago.

The figures for commercial vehicle production were less encouraging. Output fell to 9,186 in November, down 16.2% on the same month a year earlier.

Government support

"Whilst the November figures represent the smallest recorded fall in the past 14 months, the sector is still down almost 60% on the year to date," said SMMT chief executive Paul Everitt.

"Total vehicle production is still well below previous levels and 2010 is set to be another tough year with considerable uncertainty at home and abroad," he added.

"It is essential that governments continue to sustain and strengthen economic recovery, improving access to credit and encouraging investment in new technologies and products."

In September, the government announced that the scrappage scheme, which it introduced in May, would continue, at a cost of £100m.

The scheme allows motorists to trade in cars more than 10 years old in return for a £2,000 subsidy on a new model.

The extension incorporates an extra 100,000 vehicles, including vans that are eight, rather than 10, years old.