Vehicle manufacturers in Britain have dramatically cut production with the number of new cars built so far this year down 56.6%.

The decline in commercial vehicle production was even more dramatic falling 63% in the first quarter.

Despite the introduction of the scrappage scheme and promises of funding for ‘green’ vehicle production, at least one UK van manufacturer – LDV – is very near to shutting down for good.

“Efforts to restore confidence and improve access to finance, particularly for companies in the supply chain, are key to sustaining our industrial capability,” said SMMT chief executive Paul Everitt.

“It will be some months before we see any significant increase in output.”