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| New car production falls 31.5% | New car production falls 31.5% |
| (9 minutes later) | |
| The number of new cars made in the UK fell 31.5% in August from the same month a year earlier, industry figures have shown. | The number of new cars made in the UK fell 31.5% in August from the same month a year earlier, industry figures have shown. |
| There were 56,737 cars made last month, the Society of Motor Manufacturers and Traders (SMMT) said. | There were 56,737 cars made last month, the Society of Motor Manufacturers and Traders (SMMT) said. |
| But the number of cars built for the UK market reached a four-year high as the car scrappage scheme boosted sales. | But the number of cars built for the UK market reached a four-year high as the car scrappage scheme boosted sales. |
| The SMMT called for the scheme, which was introduced in May, to be extended, saying recovery was still fragile. | The SMMT called for the scheme, which was introduced in May, to be extended, saying recovery was still fragile. |
| Funds running out | |
| The UK car scrappage scheme pays a £2,000 incentive to new car buyers who scrap a vehicle that is more than 10 years old. | The UK car scrappage scheme pays a £2,000 incentive to new car buyers who scrap a vehicle that is more than 10 years old. |
| It is currently due to end in February, or when the £300m the government has allocated towards the scheme runs out - whichever happens first. | It is currently due to end in February, or when the £300m the government has allocated towards the scheme runs out - whichever happens first. |
| The SMMT said the fund was likely to run out by the end of next month. | The SMMT said the fund was likely to run out by the end of next month. |
| "The scrappage incentive scheme has had a positive impact on car production with one in three cars built in the UK last month for the home market and total volumes starting to stabilise," said SMMT chief executive Paul Everitt. | "The scrappage incentive scheme has had a positive impact on car production with one in three cars built in the UK last month for the home market and total volumes starting to stabilise," said SMMT chief executive Paul Everitt. |
| "However, underlying demand remains weak and the recovery is still extremely fragile. A continuation of the scrappage incentive scheme through to the original close date of 28 February 2010 would help to sustain growth and bridge uncertainties associated with the ending of VAT discount." | "However, underlying demand remains weak and the recovery is still extremely fragile. A continuation of the scrappage incentive scheme through to the original close date of 28 February 2010 would help to sustain growth and bridge uncertainties associated with the ending of VAT discount." |
| Address business confidence | |
| The SMMT's figures showed that 19,173 cars were built for the home market, a third of the total number produced. Cars for export were down by 37%. | |
| The number of commercial vehicles produced fell by 48.5%. | The number of commercial vehicles produced fell by 48.5%. |
| The SMMT said the continued fall in commercial output reflected "ongoing weakness" in the market. | |
| "Specific action is needed to address business confidence and encourage investment in new business vehicles," Mr Everitt said. |