New car sales in the UK fell in 2011 as the economic downturn continued to hamper the automotive industry, new figures have shown.

The Society of Motor Manufacturers and Traders (SMMT) has published a report which shows that 1,941,253 vehicles were registered in the UK last year, a fall of 4.4 per cent from 2010.

However, the figures were ahead of forecasts which expected total car sales to reach around 1.92 million units.

Paul Everitt, SMMT chief executive, was optimistic that the release of new and updated models, significantly improved fuel efficiency and exciting new technologies will all help boost the automobile sector.

He said: "Business and consumer confidence will be the key to a successful year, so it will be important that government delivers on its growth strategy and helps to resolve instability in the eurozone."

The release of new fuel-efficient models has helped to reduce average new car carbon-dioxide emissions to a record low of 138.1g/km in 2011, down 4.2 per cent on the 2010 level.

Nissan's plant in Sunderland has broken the UK car manufacturing record in its 25th anniversary year.

In 2011, the plant made a total of 480,485 vehicles, a huge increase on the 423,262 units it produced last year when it became the first UK car plant to make more than 400,000 vehicles in a 12-month period.

The firm was able to surpass last year's figures on November 16th following increased demand for its Nissan Qashqai and Nissan Juke models.  November turned out to be the most productive month in the plant's history, with a record 46,606 vehicles made.

Kevin Fitzpatrick, Nissan's vice president for manufacturing in the UK, claimed that all of Nissan's staff can be proud of the many milestones the plant passed last year.

He said: "Our 26th year promises to be equally exciting, as we launch the new Battery Plant at Sunderland and prepare the plant for production of the 100 per cent Electric Nissan LEAF alongside the Qashqai, Juke and Note."

Last year, the Nissan Qashqai was updated to include the most powerful 1.6-litre diesel engine in the world.

Luxury car manufacturer has posted a sharp rise in annual global sales as demand rose in key markets.

The firm has reported that international sales surged 37 per cent to 7,003 for 2011, with Bentley recording its second-best month of sales ever in December, when sales rose 69 per cent year-on-year to 1,059.

The US continues to be Bentley's largest market with 2,021 cars sold in 2011, Chinese drivers also increasingly purchasing Bentley models. 

Revenue in the UK also continued to increase, with sales up by more than five per cent for the year as 1,031 cars were sold.

Wolfgang Durheimer, Bentley's chairman and chief executive, claimed that the "dramatic sales growth" reflects the global strength of the Bentley brand.

He said: "It is also testament to the work of the entire Bentley team whose passion and daily commitment has delivered this outstanding result.

"It has been particularly pleasing to see renewed interest in Bentley in established as well as and new and emerging markets, all of which is contributing to a positive financial result for 2011."

Bentley is due to release a new Continental V8 model later this year to attract more customers to the brand.

New car sales are set to fall by around three per cent this year as the UK automotive sector is affected by the deteriorating economy and worsening job prospects, according to new forecasts.

Recent figures from the Society of Motor Manufacturers and Traders revealed that 1,941,253 vehicles were registered in the UK last year, a fall of 4.4 per cent from 2010.

PricewaterhouseCoopers (PwC) has projected that this trend will continue throughout this year, with new car registrations set to drop to around 1.88 million units.

Michael Gartside, senior analyst with Autofacts, PwC's automotive forecasting service, said: "Continuing economic uncertainty and the potential for an escalation of the eurozone debt crisis, presents clear downside risks to this forecast.

"Assuming there is no further deterioration we could still see signs of improving demand within the second half leading to a full recovery in demand from 2013 onward."

New car registrations across the EU and the European Free Trade Association – comprising Iceland, Norway, Liechtenstein and Switzerland – also fell by 1.5 per cent in 2011 to 13.56 million units, according to PwC figures.

British drivers would rather enjoy a leisurely drive in Scotland than in any other part of the UK, according to new research.

CSMA Club, an organisation which provides benefits to civil service employees, has published the results of a survey which show that 47 per cent of UK motorists voted Scotland as the best place in the UK to go driving, reports the Scotsman.

Cornwall amassed 41 per cent of the vote, with Devon and Wales ranked joint-third ahead of Yorkshire.

In Europe, around two thirds of drivers voted for France as the continent's leading driving destination, followed by Italy and Switzerland.

The survey also found that classic 1969 film The Italian Job, starring Sir Michael Caine, features the best driving scenes in any film.

Mark Rothery, managing director of the CSMA club, claimed that many driving scenes in films have inspired people to go on their own adventure.

He told the news provider: "Almost all of us have gone for a drive and experienced beautiful scenery - so whether you're watching Summer Holiday, Back to the Future or Thelma & Louise, let these great films inspire your next road trip, either here or overseas."

Around two thirds of British motorists are confused by simple road signs on a daily basis, according to a new survey.

Motor oil company Castrol found that more than half of UK drivers mistakenly believed that the 'no waiting' sign meant 'no entry' or 'no parking', while a third thought that the 'no motor vehicles allowed' sign implied that only cars and motorbikes were permitted.

Furthermore, one in 20 motorists admit they 'never' take notice of highway signposts and one in three respondents confessed that they simply follow the car in front when they are unsure what to do.

Motoring expert Quentin Willson expressed his shock that 28.6 million motorists appear to be easily confused by even the most basic road signs.

He said: "Signs are in place not only to help motorists navigate the road, but also for safety, and not taking the time to learn the most basic of instructions is lazy and irresponsible.

"There's only a few pages of road signs in the Highway Code. It's not War And Peace and reading five pages could one day save your life."

Just over half of drivers have not looked at the Highway Code since taking their theory test, according to the research.

London mayor Boris Johnson has urged the capital's drivers to turn off their engine if they are at a standstill for more than a minute in order to reduce pollution levels.

The mayor's "no idling" campaign calls on drivers to switch off engines when they are parked or when picking up and dropping off passengers. It aims to cut the amount of pollution produced in London in the build-up to the Olympics.

Mr Johnson said: "Turning off engines when stationary for more than a minute creates a host of positive benefits, by reducing pollution and using less petrol to save people money.

"This small individual step can collectively make a massive difference and help improve our city."

It comes after the introduction of fixed penalty notices of £20 if drivers fail to turn off engines in London upon request, with the fine rising to £40 if they fail to pay on time.

The increasing number of claims for whiplash injuries is the main cause of rising insurance premiums, according to a new report.

The House of Commons Transport Committee has published the study which calls on motorists to face tougher medical tests to prove whiplash injuries in a bid to reduce the number of fraudulent claims.

As diagnoses of such injuries are currently "subjective" they can be exploited by the growing prevalence of 'no win, no fee' lawyers, according to the study.

Currently, many insurers are deterred from defending claims in court as whiplash injuries are viewed as objective.

"We recommend that the bar to receiving compensation in whiplash cases should be raised," the report said.

"If the number of whiplash claims does not fall significantly as a result there would be a strong case to consider primary legislation to require objective evidence of a whiplash injury, or of the injury having a significant effect on the claimant's life, before compensation was paid."

The MPs also called on the insurance industry to stop engaging in "sharp practices" in the management of car accident claims, such as passing drivers' details on to third parties.

More British drivers are set to opt for electric cars in 2012 as they find the vehicles meet their motoring needs, it has been claimed.

Electric and hybrid vehicles have become increasingly available in the UK over the last few years and the industry is set to continue to grow this year with the release of the first plug-in hybrid models as well as new 'conventional' hybrid cars.

This year will also see the launch of the first diesel hybrids onto the market, which promise to offer even better fuel economy than existing petrol hybrid models that have been available for around a decade.

Dr Ben Lane, managing editor of Next Green Car, said: "Not only are high quality fully electric models now available in the UK, more drivers will find their motoring needs met by a hybrid, or by a plug-in hybrid which offers the ultimate combination of conventional and electric drive-trains.

"The good news is that all these options offer a new and improved driving experience, and can reduce running costs as well as emissions."

UK motorists looking to buy a plug-in electric vehicle this year could be eligible for purchase incentives such as the Plug-in Car Grant, which is worth up to £5,000 on selected models.

Toyota has released a new compact hybrid vehicle which it claims offers the world's best fuel economy.

The new Aqua vehicle is equipped with a new 1.5-litre hybrid system and gets 35.4 kilometres per litre, according to the Japanese automaker, compared to the 32.6 kilometres/litre of Toyota's larger hybrid car, the Prius.

This has been in part due to a reduction in the weight of the hybrid system by more than 40 kilograms compared to the one used in its predecessor.

Koei Saga, a Toyota managing officer, told reporters at a media briefing that Toyota has already received orders for 60,000 Aqua hybrid cars ahead of its launch yesterday (2nd January), well ahead of the 12,000 vehicles it initially aimed to sell.

Following its debut in Japan, the car will be sold in 50 other countries under the Prius C moniker.

Toyota plans to launch a further five hybrid models this year.

Mazda has announced that it has developed a new intelligent braking system, which will be available in its forthcoming CX-5 model.

The Japanese car manufacturer's Smart City Brake Support (SCBS) system is designed to help drivers avoid frontal collisions in low-speed city driving conditions.

Using a laser, SCBS can detect obstacles ahead of the vehicle and automatically reduces the extent of the brake rotor travel to quicken braking operation.

If the driver fails to respond to the danger, SCBC automatically activates the brakes and reduces the engine output.

In the future, the company hopes that that such technology will put an end to road accidents.

"Mazda is intensifying its safety-related research and development efforts, aiming for the ultimate goal of realizing an accident-free and safe motorized society," it said in a statement.

German firm BMW is also working on automated technologies.

In 'highly-automated driving mode', the driver is able to take his hands off the controls and sit back while the 5 series BMW regulates its own speed and direction. 

TomTom has entered the car insurance market by joining forces with a firm offering 'Fair Play' insurance.

Motaquote wants to reward good drivers and so has enlisted the help of the sat nav maker to provide the driver feedback software necessary for it to run the scheme.

Participating drivers will get a specially-developed TomTom PRO 3100 navigation device installed in their vehicle to provide 'Active Driver Feedback' and 'LIVE Services'.

The former will flag up poor driving, such as harsh braking and fast cornering, while the latter will provide up-to-the-minute travel information.

Nigel Lombard, managing director of Fair Pay Insurance, said: "We've dispensed with generalisations and said to our customers, if you believe you're a good driver, we'll believe you and we'll even give you the benefit up front."

This year, the European Union is imposing a ban on gender discrimination when it comes to pricing up motor insurance policies. 

Two thirds of UK motorists are set to put their safety at risk as they have no plans to fit winter tyres this year, according to new research.

Roadside assistance expert Mondial Assistance has published the results of a survey which shows that the majority of British drivers will not fit cold weather tyres despite recent government figures showing that over 18,000 road accidents in the UK are caused by snow or ice in winter.

Nearly half (46 per cent) of UK drivers revealed that they would not be fitting winter tyres due to their cost.

Lee Taylor, automotive director for Mondial Assistance UK, claimed that many Brits are putting cost above safety.

"Winter tyres are an investment if swapped half way through the year with summer tyres as both sets will wear half as much," he said.

"But fundamentally, winter tyres offer increased performance and safety, helping to keep you on the road and reduce the risk of an accident for several winters to come."

Winter tyres use a softer compound that remains flexible when temperatures fall below seven degrees Celsius, offering drivers improved grip and shorter breaking distances in cold weather conditions.

Around one million drivers in the UK will have to pay for breakdown cover twice as their policy does not include home rescue, according to new research.

The Environmental Transport Association (ETA) has estimated that 40 per cent of the four million drivers who buy breakdown cover without home rescue will have to use the service this year.

Those who do not take out their home rescue policy will have to incur a call-out charge of around £100 plus a charge of £1 per mile should the car need to be towed to a garage.

Andrew Davis, director at the ETA, said: "Many look to save money in the New Year, but it is when most breakdowns occur, so doing without home rescue can be a false economy.

"Suffering a breakdown at home is less traumatic an experience than on a motorway, but it will be far more expensive if you do not have adequate cover."

With motorists most likely to breakdown in the colder winter months, Brits could also look to modify their car to reduce the risk of an accident such as fitting winter wiper blades.

UK drivers have been encouraged to invest in specialist winter wiper blades this year to reduce the risk of having an accident.

The vehicle maintenance body Car Care Council has created a list of advisable modifications motorists should make to their car to ensure they are not hampered by the winter weather.

One way in which drivers can cut the risk of an accident this winter is to ensure their wipers work adequately, with the council urging all drivers to replace them every six months and consider fitting winter blades for the cold season.

"The thought of a breakdown, an engine not starting or otherwise being stranded is scary as it is, but those things happening in freezing winter weather adds another level of fear," said Rich White, executive director of the Car Care Council.

"An investment of an hour or so to have your vehicle checked will pay off and help make sure your winter driving is less frightful and more delightful."
Autoparts provider Comline offers winter wiper blades suitable for a range of different branded cars including Audi, BMW, Land Rover, Renault and Toyota.

UK drivers have been urged to avoid hefty repair bills relating to stricter MOT rules by servicing their car regularly.

New European Union legislation which came into force on 1st January 2012 means that MOTs will now include additional checks on some features already tested, such as brakes and lights, as well as new checks on systems including electronic stability control and electronic power steering systems.

David McPhee, MB&G managing director, encouraged drivers not to be unnerved by the new testing criteria and claimed regular servicing could help flag up problems at an earlier stage and reduce the cost of repair bills.

He said: "Motorists should remember that having a full service history will greatly increase the value of their car or van, while keeping them safe and legal on the road and enabling them to budget for the future without fear of those unpleasant, unplanned financial surprises."

The new regulations will be enforced by the Vehicle and Operator Services Agency in the UK.