Disputes hit scrappage start

  • Arguments over VAT
  • Deliveries could be delayed
  • Customers needn't worry
The Government's scrappage scheme comes into effect today, but its introduction has been marred by disputes.

According to reports, some manufacturers may have to delay delivery of pre-ordered cars, due to disagreements with the Department for Business, Enterprise and Regulatory Reform (BERR), which is administering the scheme. Ford and Honda have already said they are supending deliveries until the issue has been resolved.

The disputes centres on the method of calculating VAT payments and also the way in which the manufacturer's £1000 contribution is paid. There are no suggestions that manufacturers are planning to back out of the scheme altogether.

The Society of Motor Manufacturers and Traders (SMMT) says that car makers are still: 'Seeking clarity from BERR regarding the treatment of VAT on new vehicles being sold through the scrappage incentive scheme. There is likely to be a short delay with some manufacturers while the VAT issue is resolved.'

Manufacturers taking part
The SMMT reports that the following manufacturers have confirmed that they will take part in the scheme:

Alfa Romeo, Audi, BMW, Chevrolet, Chrysler, Citroen, Daihatsu, Fiat, Ford, Honda, Hyundai, Isuzu, Jaguar Land Rover, Kia, Lexus, Mazda, Mercedes-Benz, MG Motors, Mini, Mitsubishi, Nissan, Peugeot, Porsche, Proton, Renault, Saab, Seat, Skoda, Smart, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen and Volvo.

If a manufacturer hasn't signed up initially, it can join the scheme with one month's notice. Car makers must also provide three months' notice before opting out of the scheme.

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