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”.

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