Drivers still trading in old bangers for new as scrappage scheme boosts production

The Government’s scrappage scheme has helped to slow the fall in car production.

The Society of Motor Manufacturers said new cars topped 107,635 in July, down 17.9 per cent on last year’s numbers – the smallest month-on-month decline of the year so far.

The scrappage scheme has seen 155,000 out of a possible 300,000 cars bought up.

SMMT chief executive Paul Everitt said: ‘The slowdown in the rate of decline of UK car production reflects the impact of the scrappage incentive schemes in place across Europe.

‘The UK motor industry is starting to stabilise – but remains fragile.’

Colleague Nikki Rooke agrees: ‘It probably won’t be until the very end of this year, possibly into 2010, that we start to see growth.

‘Over the year to date we are still down nearly 50 per cent and that’s a considerable amount that needs to be made up’, she said.

Car sales have been a major bugbear for retailers as the recession shoved many manufacturers into a financial crisis.

Indudstry chiefs have asked Lord Mandelson to extend the cash-for-bangers scheme to help them continue to stem the decline.

Sourced via dailymail.co.uk