Car production has fallen by 7.3% in July to 130,274 units compared to 140,497 units last year.

Year-to-date production is down by 35,090 units (3.5%) from 1,014,157 units last year to 979,067 units in 2005.

The reason for the fall in production was pinned on the collapse of MG Rover, who accounted for 93% of the drop.

Export levels were down 0.6% over the first seven months of 2005 and according to the results.

“Production in July was dominated by the loss of manufacturing at Longbridge, pitted alongside the start of the annual summer shut-down at UK carmakers. Exclude MG Rover from the figures and you actually see a year-to-date increase from the other car manufacturers,” says Christopher Macgowan, Society of Motor Manufacturers and Traders chief executive.