The UK motor industry is still in trouble but there are signs of improvement as production begins to stabilise across the UK, especially in Swindon with Honda, while Fish Brothers, with 10 dealerships in the town, is bucking the trend.

“We are weathering the global recession and beginning the long road to recovery,” said Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders.

“As production volumes and registrations begin to stabilise, Government must help to sustain consumer confidence and encourage banks to deliver the credit industry needs.”

Figures for June which were published yesterday shows that 92,000 cars were built in the UK for that month which is 30 per cent down on last year. A total of 72,000 were for export For the year to date is 410,000 have been built and that is 50 per cent down compared to 2008. More than 320,000 went for the export market.

The pace of decline in car output is slowing and June’s shortfall was smallest of the year. Output has fallen, but plants are expected gradually to restore volumes.

There is continuing confidence at the Honda factory in Swindon, which was closed down for four months, where the associates reckon they took their medicine earlier in the year and are enjoying good production figures again.

“Yesterday we closed down for the three-week summer holiday but our figures for this financial year are both encouraging and as we predicted,” said Steve Kirk, a spokesman for the company.

“The CR-V and the Civic, which was named this week as the UK’s most reliable car by Warranty Direct, are continuing to be popular and after the summer break we will be looking to get the Jazz ready for full production.”

The success of the Government’s ‘cash for bangers’ scrappage scheme has had a positive impact on the June statistics and will continue over the next few months where all manufacturers have felt the benefit.

“When the scrappage scheme was announced we were pretty busy,” said Sara Hodkin, the group marketing manager for Fish Brothers.

“Things have quietened down on that front but in June we increased sales by more than 50 per cent on new cars compared to the same month last year.

“Honda are doing particularly well as are Toyota and fleet deals are doing well. Used vehicles are down as well as commercials. We are pleased with the way things are going.”

UK commercial vehicle production remains low and is 60 per cent down on last year.

“This reflects the difficult economic conditions and fragile business confidence in key markets, particularly road haulage and construction,” said Paul Everitt.