THE motor industry will be hoping that the latest monthly car production figures out today will show a slowing in the decline in vehicle manufacturing.

The success of the Government's "cash for bangers" car-scrappage scheme is likely to have a positive impact on the June 2009 statistics due to be announced by the Society of Motor Manufacturers and Traders.

The June figures will also include the cars produced by Honda at its plant in Swindon where the downturn in sales led to manufacturing being halted for the months of February to May this year.

With other manufacturers cutting back on production and with the car-scrappage scheme not being introduced until May, the car production figures slumped 56.2% in the fist four months of this year compared with January-April 2008.

Commercial vehicle (CV) production slid even further, dropping 63.6% in January-April 2009.

There was slightly better news in May this year, when the 43.0% fall in car production was the smallest of the year so far.

The industry has also taken heart from the June 2009 new car sale figures. Although they fell 15.7% compared with June 2008, the decline was the smallest since July 2008.

With consumers keen to take advantage of the scrappage initiative, registrations to private buyers last month were up 3.9% - the first increase since November 2007.