The British government has confirmed that it will extend its scrappage scheme for an extra month allowing manufacturers and dealers more time to prepare for and operate the exit phase of the scheme.
This follows requests from car manufacturers for more time to prepare dealers and inform consumers.
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Previously due to complete in February, the scheme, which is jointly run by the government and car manufacturers, will now run until the end of March or until the money runs out, whichever is the sooner.
Business secretary [minister] Peter Mandelson said: “Against the background of the economic downturn the scrappage scheme has proved a great success, driving UK car sales, protecting jobs and supporting the supply chain for car manufacture at a time when this sector needed it most.”
In the final stages of the scheme manufacturers will be apportioned order quotas to aid an orderly close down.
The government said that by 24 January 330,722 new vehicle orders were taken under the scheme since it was announced last April. The GBP2,000 (USD3,170) grant is made up of GBP1,000 from government with matched funding from vehicle manufacturers. It also applies to commercial vans (up to 3.5 tonnes) as well as cars.
