Scrappage scheme: the reaction

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  • Reaction to Budget 2009
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Who is saying what about the Chancellor's Budget...

Business Secretary Lord Mandelson
'This is targeted action with a capped budget and for a limited time, designed to boost the whole motor trade. This will ensure that the benefits of a scrappage scheme are balanced with the needs of other sectors of the car industry, such as the second hand market, maintenance and repair businesses, and other industries that produce consumer durables or on the taxpayer.

'The car sector is under huge pressure at the moment and the Government is determined it remains an important part of our manufacturing base. It invests heavily in research and development, supports highly skilled workers and a wider supply chain. These are vital to our future manufacturing and retail success.

'The scheme will be run by car manufacturers who wish to participate. It is expected to be operational from mid-May to allow industry time to prepare. There will be proper verification procedures to ensure the rules are followed, including audits by DVLA to avoid abuse that has been encountered in other countries.'

Business Minister Ian Pearson
'People will not only save hard-earned cash when buying a new car or a van for their business, but they will know they are helping to save jobs, too.

'If you've got a vehicle that's ten years old or more, you just need to talk to a participating dealer who will do the rest. You will get at least £2,000 towards a new one.'

Xavier Duchemin, managing director of Citroen
'It's good news for the industry and the car buyer and we'll support it.

'Finding (our) £1000 on a car like a C1 will be difficult, but we'll find a way.

'We need to think about the impact on our existing scrappage deals. It's a complicated way of introducing a scrappage scheme and why it's not the same as in Germany, France and the rest of Europe I don't know...

'Our existing scrappage deals have been hugely successful – so far in April we are 10% up on last year in a market that's still 30% down.'

Director of the RAC Foundation, Professor Stephen Glaister
'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 risks consigning a lot of perfectly good, and relatively clean, vehicles to the dustbin.
However if the scrappage scheme leads to a reduction in the average age of the national car fleet then this has to be good for road safety as more modern cars will have a wider range of safety features built-in.

'And whilst the announcement is good for motorists and the motor industry, if it does not encourage people to buy green vehicles it is a missed opportunity as far as the environment is concerned.'

David Shelton, Managing Director of Motorpoint
'We’re delighted that the Chancellor Alistair Darling has finally seen sense and put the wheels in motion for a voluntary car scrappage scheme to begin next month.'

'However, the content of the scheme seems to smack of collusion between Government and the car manufacturers, with the buyer once again having to pick up the bill. In short, a good day for the manufacturers and their dealers and not such a good day for the consumer.'

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