Production of cars in the UK fell back 58.7% in January compared to the same month the year before, latest figures show. In total only 61,404 cars were manufactured in January 2009, according to the Society of Motor Manufacturers and Traders.

SMMT chief executive Paul Everitt announced today: “Following extended winter shutdowns, vehicle output continued to fall in January in line with expectations. The extent of the decline highlights the critical need for further Government action to deliver the measures already announced and ease access to finance and credit.”

The figures come on the back of a marked reduction in production in recent months. During the first few months of last year passenger car sales and therefore production continued to demonstrate healthy growth, and this in turn means that passenger car production for the whole of 2008 only reduced by 5.7% compared with 2007, whilst commercial vehicle production fell by 5.9%.

Conversely, when studied on its own, the second half of the year gives a completely different picture. Passenger car production tumbled 47.5% in December 2008, when compared to December 2007, whilst Commercial Vehicle production decreased by 56.7%.

The scale of the fall brings into focus the crucial need for more Government action to deliver the programmes which they have already agreed. There’s also a very urgent need to ease access to finance and credit.

Recently the leaders of the Unite union warned the Government that they feared the failure of a car factory was “imminent” as they held private talks with Chancellor Alistair Darling to call for more financial support for theautomotive industry. The Union stated publicly that a manufacturing plant was in immediate danger of shutdown, and that this failure would see the loss of almost a thousand direct jobs and up to 5,000 jobs in the supply & distribution networks.

The Union warned Mr Darling that manufacturing would not recover from the downturn unless “urgent assistance” was given. Many UK plants extended their normal Christmas and New Year stoppages in 2008/09 and in recent weeks there have been a string of announcements of job losses and production cutbacks.

In contrast to the manufacturing gloom, some sectors of the Automotive After Market are posting positive signs of growth. John Akin, head of Performance Wiper Blade importers XOPC reported that his company was enjoying record sales as motorists began to be more challenging & do more research before purchasing essential consumables like Wiper Blades. He believed that thedownturn was proving to be a great opportunity for his company, as drivers were more prepared to make purchase decisions based on performance, safety and value for money rather than simply blindly buying the existing established brands. He went on to say that their unique 12 month warranty on all their Silicone Wiper Blades was proving to be a great attraction in these difficult times.