Car makers demand scrappage extension
03 June 2009
Car makers are supporting a possible extension to the government’s scrappage scheme.
We reported earlier how the scheme – which offers buyers £2,000 for a ten-year-old car – could end six months early due to popular demand.
Could you scrap your car for £2,000? Find out on Auto Trader’s scrappage site
If the rate of 3,181 sales per day continues, funding for the scheme could dry up by August 20. But the government declined the scheme could be extended.
A range of manufacturers shared their views with Auto Trader.
Suzuki
Scrappage sales: over 1,000
Alun Parry, Head of Press and PR at Suzuki said the manufacturer would support an extension for the scrappage scheme, if there was one.
“It’s been a huge success in Germany and we don’t see any reason why we would oppose the scheme.”
Kia
Scrappage sales: over 4,000
Kia also welcomed an extension to the funding of the scheme. Sue Mulcaster, Senior Press Officer for Kia said: “If it’s true that the government’s funding may run out and they decided to extend the scheme, Kia would support that.”
Hyundai
Scrappage sales: around 9,000
Tom Barnard, PR Manager for Hyundai, said: “Our feeling is since the government is making profit on new cars over £7,600 sold under the scheme, we would be very surprised if they didn’t extend it.”
Toyota
Scrappage sales: around 5,500
A spokesperson for Toyota said: “Toyota is pleased to see the success of the scrappage scheme and welcomes any continuing support for the industry which will help increase sales.”
Ford
Scrappage sales: over 3,000
Not all manufacturers are convinced about extra funding for the scheme.
Ford’s News Manager Oliver Rowe said: “We are pleased with how the scrappage scheme is going, but it’s been an administrative challenge.
“We’re getting up to speed with it right now, rather than focusing on it slowing down.”
Nissan
Scrappage sales: unknown
Nissan believe the interest in the scrappage scheme will decline.
Linda Robinson, Press Communications Manager said: “If you look at other countries which introduced a scrappage incentive, there is usually a peak in new car orders after a few months.”
“So we don’t expect high levels of demand to continue over the coming months.”
Other manufacturers
A number of other manufacturers including Volkswagen refused to comment on whether an extension to the scheme should be announced.
Once the £300 million government funding has been spent (enough for 300,000 eligible buyers), the scheme will end. If it is not used up, the scheme will come to a close on February 28, 2010.
The Society of Motor Manufacturers and Traders
The SMMT acts as the voice of the motor industry to government and the media. It originally suggested the scrappage scheme and would back an extension if announced.
A spokesperson said: “Ultimately we want something which will boost the UK vehicle market.
“If the government decided to extend the scheme, we would support their decision.”
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