UK car production reaches 9 year high in January

LONDON, Feb 23 (Reuters) - British car production rose by an annual 7.5 percent in January to hit its highest since 2008, as strong demand for exports compensated for a decline in demand at home, an industry body said on Thursday.

Overall output hit 147,922 vehicles due to a 10.8 percent increase in sales to overseas markets, according to the Society of Motor Manufacturers and Traders (SMMT)

However, there are concerns about the future of production at General Motors (NYSE: GM - news) ' British car plant after French carmaker Peugeot (Other OTC: PUGOF - news) said it was considering a takeover of GM's European operations, which are branded as Vauxhall in Britain and Opel on the continent.

Vauxhall's Ellesmere Port plant in northern England built nearly 120,000 vehicles out of a UK total of 1.72 million cars last year. Politicians and unions are seeking guarantees from Peugeot over future output.

Britain's overwhelmingly foreign-owned car industry, which backed remaining in the European Union, is also worried about any potential tariffs as a result of Brexit which could make production at their plants uncompetitive.

"Future (Frankfurt: 923414 - news) growth will depend upon maintaining our competitiveness, not least in terms of securing a future trade deal with the EU that allows us tariff-free access to our biggest market," SMMT Chief Executive Mike Hawes said. (Reporting by Costas Pitas; Editing by Mark Potter)