UK Car Makers Hit By Fall In Demand

A fall in European demand for British-made cars hits the manufacturing of vehicles across the UK, according to automotive industry figures.

Car manufacturing fell 5.8% in September, with 128,192 cars made in the Britain, according to the Society of Motor Manufacturers and Traders (SMMT).

Commercial vehicle production dropped by even more - 20.2% - and the total number of all vehicles made fell by 7%.

It follows recent figures that showed Europe's car market shrunk at its fastest pace for 12 months last month.

Only the UK had managed to buck the trend - but the SMMT said the effects of the eurozone debt crisis had now hit home.

"Declining demand for cars and vans across the major European markets impacted UK vehicle and engine production in September," SMMT's chief executive Paul Everitt said.

"The strong demand for UK products outside Europe and the investment committed by major vehicle manufacturers will secure future growth, although the coming months will be challenging for companies at all levels in the supply chain."

He said European governments had to focus on securing financial stability and economic growth, "or they risk long-term damage to key industries."

Despite the September fall, vehicle production is still up in the year so far, which SMMT said "reaffirms the strength of global demand of UK-built products".

The managing director of Vauxhall Motors, Duncan Aldred, told Jeff Randall Live it was a difficult time for car makers.

"All manufacturers are having to take production breaks in order not to build up excess inventory," he said.

"There is too much capacity at the moment on a european level for the number of buyers there are out there - so clearly, there will be winners and losers."