On 18th March 2009 the Times
carried a piece by Ben Webster, Transport Correspondent, on
the scrappage scheme and highlighted the views of Professor
Garel Rhys of Cardiff University Business School who is a
motor industry specialist. As
"proposals to spend up to £500m on a scrappage
scheme in the UK" are under consideration by the lordly
Mandelson (the UK government business minister) "after
being impressed by the success of scrappage schemes elsewhere
in Europe" . . . Garel Rhys has doubts over the scheme.
He says "only
4% of the cars bought under a UK scrappage scheme would be
made in Britain" but why?
Well he says that "such a move would ignore a unique
feature of the British car industry: 78% of cars made here
are exported and 86% of cars bought in the UK are imported.
The situation is quite different in other countries that have
introduced scrappage schemes. In Germany for instance - where
drivers receive Euro 2,500 (about £2,300) for scrapping
a car that is at least nine years old and buying one less
than a year old - more than 65% of cars bought there are made
in Germany. In France it is 62% where the scrappage incentive
is Euro 1,000 for an old car."
Professor Rhys then notes "there are few small, cheap
cars made in the UK - experience in mainland Europe shows
that almost all drivers taking the scrappage incentive would
spend their grant on a small, highly efficient car. In the
UK the Nissan Micra and the Mini are the only home built small
cars and they account for 4% of the UK market."
He adds that" British car dealers would benefit from
the scheme as they "were likely to take advantage of
the grants to reduce the discounts they are currently offering."
See the Times article. More
(Times article published 18.3.09, posted
12.4.09)) |
Look
back at our previous news items on this topic
Budget row over £2,000 payout to scrap a
car
The Times reports today that "the Treasury
is blocking plans to give motorists £2,000 towards
the cost of a new car". It adds the lordly Mandelson,
the UK government's business minister, wants "his
scrappage scheme made the centrepiece of the
Budget on Wednesday 22nd April" . . . however
dithering Darling (the Chancellor of the Exchequer)
and some Treasury officials "have expressed some
deep anxieties about the cost and terms of the programme
which would encourage drivers to scrap old vehicles
for new, cleaner cars. More
(11.4.09)
Scrappage scheme in the UK under consideration?
A report in the Times on 12th March 2009 indicates
there is a growing frustration among industry chiefs
and unions over what they see as the lack of urgency
by the Government in tackling the problems of the
UK car industry. Industry figures had hoped to hear
news of other initiatives, such as access to consumer
credit, which they view as vital.
(12.3.09)
Prince
of Darkness eyes scrappage scheme
The report in today's Times of the announcement made
yesterday by the lordly Mandelson, the Secretary for
Business, says "all the aid announced for the
car industry yesterday is supposedly linked to "lower
carbon initiatives", but the car industry expects
the green requirement to be interpreted very loosely".
(27.1.09) More
Comments on the cash for cars news items
Comments from the FBHVC in its news release dated
21st November 2008 together with an FBHVC Position
Paper dated 3rd December 2008. More
Cash
for old cars scheme report
In a lead article in the January 2009 issue of Classic
Car Mart, Editor Keith Moody says in his leader "This
month, Classic Car Mart launches a campaign to save
our modern classics. It follows news that the Government
is looking at ways to offer drivers incentives to
scrap older cars." (1.12.08)
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