UK’s Car Production Up 65%
According to the Society of Motor Manufacturers and Traders (SMMT) 101,190 new cars rolled off UK production lines as scrappage schemes here and in Europe boosted demand. Britain hasn’t seen a 64.8% increase production since May 1976.
Chief executive Paul Everitt said: “Vehicle and engine production rose for a third successive month in January, demonstrating the continued success of global scrappage incentive schemes."
The UK’s increase in car production was also influenced by scrappage schemes ran by several European governments. In Great Britain the government decided to extend the country's scrappage scheme by adding an extra month and pushing the deadline well into March. Until now, the scheme has proved to be very lucrative, as some 330,000 new vehicles have been sold.
"Scrappage accounted for 17.8 percent of January new car registrations, the lowest percentage since the first full month of the scheme. With funding for over 60,000 vehicles still available, we welcome last week’s announcement by government to delay the scrappage close date into March," SMMT chief executive Paul Everitt said.
The UK has pumped about 400 million pounds in the scheme since May last year, setting the limit of vehicles to be sold to 400,000. Now, there are about 70,000 left. Customers who choose to buy a new car through the program benefit from a 2,000 pounds discount on the price of the new vehicle.