UK car production increases by record amount

The numbers of cars produced in the UK increased by the biggest amount last month for more than 30 years as the UK pulled out of recession and car scrappage schemes around the world boosted demand. Car production soared by almost two-thirds in January, compared with the same month last year, to 101,190 cars, according to trade body the SMMT . It was the third consecutive month that production has increased. But the SMMT warned that the industry would only see modest growth this year, as government scrappage schemes came to an end. The UK scheme, which was introduced last May, expires next month, with most others, such as those in France and Germany also winding down. British motorists receive £2,000 off the price of a new model when they trade in their old car. The scheme is jointly funded by the government and the industry. About a third of cars made in Britain are sold to British drivers, and the rest exported.