The announcement of a £2000 scrappage incentive has officially met with a positive reaction from the car industry.
However, there are already rumblings from the car manufacturers themselves that they arer unhappy with the announcement. Follow the links to read further details.
Scrappage 'compromise' attacked
Scrappage 'bad for premium cars'
Blog - Scrappage: it's £1k, not £2k
Blog - German makers scrap over scrappagePaul Everitt, the chief executive of the Society for Motor Manufacturers and Traders (SMMT), which has been pushing hard for a scheme, said: "This is good news for consumers and will get people back into showrooms, kick-starting demand in the market.
"The scheme recognises the economic value of the motor industry and we are determined to make it a success. There is clearly a great deal to do and we look forward to discussing the finer detail of the proposal with government in the coming days."
The Retail Motor Industry Federation's (RMIF) chairman Paul Williams said: "By opting for a vehicle scrappage scheme in the Budget, the Government has taken the opportunity to boost the new car market, while simultaneously helping consumers buy a new car."
Stephen Glaister, director of the RAC Foundation, said: “Currently the vast majority of cars are still on the road at ten years old, indeed at 14 years old half are still on the road. The scrappage scheme announced today therefore risks sending a lot of perfectly good and relatively clean vehicles to the dustbin.”
A spokesperson for the Environmental Transport Association (ETA) said: “There are lots of 10-year-old cars with plenty of life left in them and from a climate perspective, to send them to the scrap heap is money poured down the drain. Car scrapping schemes are good for boosting new car sales – they have very little to do with the environment and to suggest otherwise is not just greenwash, it is hogwash.”
Edmund King, AA president, said: “Drivers will be delighted that a scrappage scheme has been given the green light however motorists will be furious that he has landed a fuel duty bombshell to pay for it. The AA first raised the scrappage issue with Downing Street last September so are pleased that a scheme has finally been given the go ahead.”
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