Exit Strategy For Scrappage
Wednesday 24th February 2010, 9:50am
There has been concern in the industry for some time about how the UK scrappage scheme will be brought to a halt if the maximum 400,000 orders are placed before the closing date of March 31.
Business Secretary Peter Mandelson has now confirmed that the 37 manufacturers involved will be allocated a proportion of the nearly all the remaining orders (around 40,000). Nearly all, but not quite: a small further allocation will be made towards the end of the scheme’s life for manufacturers which have been particularly popular among scrappage buyers. Mandelson’s Department for Business, Innovation and Skills is not naming names here, but clearly it must be referring to Ford and Hyundai, the clear leaders so far.
The scheme will not be extended after the time or money have run out, but the Government is emphasising that several manufacturers are effectively doing this themselves by offering similar deals, such as the so-called swappage arrangements introduced by Toyota and Vauxhall.