Fall in car sales arrested by scrappage scheme

The Government’s scrappage scheme has helped minimise the fall in new car sales during June, with a drop of 15.7% recorded.

Car forecourt

According to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT) the number of new cars sold in the UK during the month was 176, 264 units.

It signals the fourteenth consecutive fall in new car sales, but was markedly lower than the 24.8% drop recorded in May

SMMT chief executive Paul Everitt .ays: “We are now beginning to see the positive impact of the scrappage scheme translate into new vehicle registrations.

“SMMT expects the pace of improvement to increase in the coming months, but we can already see the industry making steady progress on the long road to recovery.”

The scrappage scheme came into effect on May 18 and involves a £2,000 incentive paid to motorists who get rid of cars registered before 31 August 1999 to buy a new one.

The SMMT figures comes as General Motors Europe continues to thrash out the sale of its struggling Opel and Vauxhall businesses.

Last week the Government said it would consider underwriting the planned takeover of GM Europe. Business Secretary Lord Mandelson has said that it “may involve loans or loan guarantees”.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here