Pre-Budget Report: UK car industry calls on Darling to sustain help

The request from the Society of Motor Manufacturers and Traders (SMMT) came as figures showed car sales climbed 57.6pc to 158,082 in November compared with a year earlier. The SMMT said that the scrappage scheme, which is due to expire at the end of February, accounted for 21.6pc of all new vehicle registrations in the month. Paul Everitt, the chief executive of the SMMT, said that: "We are urging the Government to use its pre-Budget Report to sustain the recovery and generate business confidence by stimulating demand in key parts of the new vehicle market." Despite a buoyant November, new car sales so far this year are still down 8.8pc compared with 2008 when a total of 2.13 million new cars were registered. The global car industry has been one of the hardest hit by the downturn as consumers cut their spending, leaving manufacturers with far too much capacity. Howard Archer, an economist at Global Insight, said that November's figures "may also be a sign that a significant number of consumers have greater scope and willingness to step up their discretionary spending." The figures came as Ford's head of Europe, John Fleming, warned that the removal of stimulus plans on the continent threaten demand next year.