Car industry enjoys production boom

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The UK car industry has enjoyed a welcome boost after figures revealed a sharp rise in car production last month.

Car insurance companies will be buoyed by figures released from the Society of Motor Manufacturers and Traders (SMMT) which showed a 62.7% rise in the number of cars rolling off the production line compared to February last year.

Demand for commercial vehicles also grew dramatically last month after production levels rose by 74.2% compared with the same month last year.

The reinvigorated car industry has now seen four months of solid growth following a turbulent 2009 that saw the introduction of the Government's car scrappage scheme to keep the wheel's rolling in the UK automotive sector.

SMMT chief executive Paul Everitt said: "The fourth month of consecutive growth in new car production is encouraging news for industry.

"Manufacturers and Government need to work together to ensure that there is continued investment in new products and technology to sustain future growth."

"UK-built engines and vehicles are exported to over 100 markets worldwide, offering some resilience to local market conditions. Industry looks to next week's Budget to maintain stability in demand through continued investment in new products."

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