The Government is to impose scrappage scheme quotas on car manufacturers as it is revealed that funding remains for fewer than 82,000 new vehicles.
Based on popularity
Quotas are to be allocated by the Government, based on brand popularity, in order to allow a 'smooth closing' to the scheme.
Business secretary Lord Mandelson said: 'I am pleased to see that the scheme has been taken up by so many people, supporting our automotive manufacturers through a very difficult time.
'With limited orders as we near the close of scrappage there is a risk of disappointment for car buyers. I would urge people who are still keen on taking part to put their orders in as soon as possible as time is running out.'
Lord Mandelson also said he expected the 'impact' of the scheme to continue into 2010 after the incentive closes.
How will the quotas be allocated?
The statement released by the Department for Business Innovation and Skills (BIS) said quotas would be allocated by brand popularity, however it hasn't yet decided whether the quotas will be allocated by overall market share or by market share of scrappage sales.
A spokesperson for BIS said: 'The figures have yet to be determined.' The scheme ends on February 28, so there is not much time left to decide.
If the quotas go to those brands with the greatest overall market share, it will upset smaller manufacturers who have done well under the scrappage scheme. 'We will go ballistic if that happens,' said one such car maker.
The Society of Motor Manufacturers and Traders hopes this question will be answered soon.
'The Government said the quotas would be allocated by brand popularity,' said a spokesperson, 'but what is not yet clear is whether that is based on overall market share or based on scrappage registrations. We are expecting to hear from BIS this week.'
However, it seems that the scrappage quotas will not be fixed. It is expected that the BIS will monitor orders placed through the scrappage scheme and reallocate the quotas to those that need them, to ensure that potential scrappage customers can buy the car they want.
Where the quotas could go – the top 10 sellers in December
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