Car industry sees benefit of scrappage initiative

ScrappageThe UK car industry is seeing immediate results from the Government’s vehicle scrappage scheme despite initial teething problems, with Ford revealing it has already taken more than 3,000 new car orders and General Motors seeing increased interest in its Chevrolet brand.

Concerns arose on Monday (18 May), the day of the scheme’s launch, when Ford, Honda and GM told their dealerships not to accept deliveries of new cars until details of the scheme had been resolved.

But Ford now says with all administrative issues resolved, it planned to begin delivery of the first new vehicles on Wednesday (20 May). A Ford spokesman says the scrappage scheme is expected to “stimulate sales within the sector and help protect jobs”.

GM communications director for the UK and Ireland Denis Chick says it is already seeing “significant interest”, particularly for its Chevrolet marque.

Society of Motor Manufacturers and Traders chief executive Paul Everitt says with all issues now resolved, the scrappage scheme has the full support of the UK car industry, with a total of 39 brands “committed to the scheme enticing car buyers back into showrooms”.

The scheme is part of the Government’s plans to boost new car sales to help the ailing automotive industry. It will give consumers a £2,000 discount on new cars if they trade in vehicles that are at least ten years old.

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