Scrappage scheme making an impact on production - Car insurance - News - Moneyfacts


Scrappage scheme making an impact on production

Scrappage scheme making an impact on production

Category: Car insurance

Updated: 26/11/2012
First Published: 21/08/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Government's scrappage scheme, which offers consumers £2,000 off a new vehicle if they scrap their ten year old model, is having an impact, according to the Society of Motor Manufacturers and Traders (SMMT).

Production of new vehicles in the UK totalled 116,075 last month.

While this actually represents a fall of 23.7 per cent, it is an improvement on recent figures and suggests the pace of decline in vehicle production is slowing.

The data shows a far superior performance compared to June, when production fell by 34.5 per cent, and is less than half the fall seen during 2009 so far, with production down by some 48.1 per cent.

The SMMT said the scrappage scheme was playing its part in the improved numbers.

"The slowdown in the rate of decline of UK car production reflects the impact of the scrappage incentive schemes in place across Europe," said Paul Everitt, SMMT chief executive.

However, more help from the government is needed, while banks should be encouraged to provide much needed credit and finance, he warned.

Earlier this month, the SMMT revealed that new car registrations recorded a monthly rise in July for the first time since April 2008.

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