Motor industry wants scrappage extension

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The flagging motor industry is talking with the Government in hopes that they can get the scrappage scheme continued into February 2010, a task that would require about £150m more from Mr Browns pocket.

The scheme was started on May 18th, at which point the Government said it would run into February or until their funding ran out, which is expected to happen sometime between the end of October or the beginning of November.

The Government has already pledged £300m for the scheme.
The SMMT is afraid that new legislation that requires higher first year Vehicle Excise Duty rates on all vehicles with larger engines, starting in April of next year, will stop consumers from purchasing new cars, which the extended scrappage scheme could help.

According to the SMMT, the scrappage scheme has already been able to produce growth in the auto sector, after 15 months of declining sales reports in the marketplace for new cars.

To date over 100,000 cars have been bought with the scrappage scheme, and an additional back order of over 100,000 is banked.

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