Car scrappage to become brand popularity contest in final month
A quota system based on brand popularity will be introduced to the car scrappage scheme for its final weeks, the government has confirmed.
The scheme is due to come to an end next month and the government says that more than three quarters of its £400m budget had now been used up.
The Department for Business, Innovation and Skills says order quotas will be given to manufacturers based on brand popularity to ensure a smooth closing of the scheme.
Business secretary Peter Mandelson says: “I’m pleased to see that the scheme has been taken up by so many people, supporting our automotive manufacturers through a very difficult time.”
The scheme, introduced by the government last year, gives drivers £2000 to trade in cars more than 10 years old against a more fuel-efficient newer model.
Earlier this month the Society of Motor Manufacturers and Traders (SMMT) said that since its introduction the scheme had accounted for more than a fifth of all new car sales.
Mandelson says: “Industry figures have reflected the success the scheme has already had, boosting both car sales over the past few months and maintaining jobs in car production. We expect the impact of the scheme to continue to be felt into 2010 as deliveries will continue after the scheme closes.”
Last year, the government came under increasing pressure from industry bodies to extend its car scrappage scheme, with the CBI, the EEF and the Automobile Association lobbying for more funding. The efforts proved fruitful when the government extended the scheme but the government are unable to provide any further funding.