PROVISIONAL figures released by the Office for National Statistics show cars produced for export hit record levels in 2004.

According to the data, more than seven in 10 cars manufactured in this country last year were to be exported. It was the third year in a row output for export increased.

Christopher Macgowan, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said: "Stability has returned to the car production landscape in the last few years. Total volumes have remained steady at around 1.65m units, although output for export has been rising steadily and is now running at record levels.

"However, while the picture is generally positive we need to guard against complacency. The UK hosts some of the most productive car plants in Europe, but rising raw material and fuel costs, as well as unfavourable exchange rates, play their part in threatening future prosperity, particularly for companies in the supply chain."