UK Extends Scrappage Scheme

The British governement decided yesterday afternoon to extend the country's scrappage scheme by providing an additional 100 million pounds in funding for the program. According to the estimations, the money will be enough for some 100,000 more customers.

"There are encouraging signs that the economy is picking up. But recovery remains fragile and uncertain, especially in manufacturing and one of its cornerstones, the car industry," UK's business minister Peter Mandelson was quoted as saying by just-auto.com.

The scheme, which initially was planned to last until next February or until the 300 million pounds would have run out. The success of the scheme made the money be enough for at most until November this year.

As was to be expected, the extension of the scheme was welcomed by UK's automotive industry. Among the first to make a statement, the Society of Motor Manufacturers and Traders (SMMT) said "we are obviously pleased that the industry call for an extension has been listened to by the government."

"Today's announcement that the scrappage scheme will be extended to include an additional 100,000 vehicles is fantastic news for the automotive industry," David Raistrick, UK's Deloitte manufacturer leader addded.

"The extension of the scrappage scheme by government is a victory for common sense over dogma" Paul Williams, National Franchised Dealers Association chairman concluded.

Apparently, the mechanism of the scheme will remain the same as until now. Customers who will agree to trade-in an old car and buy a new, more efficient vehicle will receive a 2,000 pound incentive, with 1,000 coming from the state and the rest from the manufacturers.