Ford expects the UK Government to introduce a car-scrappage scheme to kick-start consumer demand for new cars.
Scrappage schemes have already been introduced in Germany and France, where owners who trade-in cars of around nine years old receive a cash incentive of almost 2000 if they subsequently buy a new environmentally friendly car.
Autocar reports that Ford Europe's sales chief, Ingvar Sviggum, said the company has included sales from a UK scrappage scheme in its budget for 2009.
'I expect that the British will introduce a scrappage scheme,' he said.
Paul Everitt, the chief executive of the Society of Motor Manufacturers and Traders, said that scrappage-incentive schemes would help stimulate consumer demand.
'The car factories in the UK and Europe will not begin to function properly until the market is moving satisfactorily,' he said.
'There is a significant amount of unsold cars out there. If we can use a scrappage mechanism to shift those cars and begin to create a steady flow of demand, then factories can start to operate.'