Britain Needs a Scrappage Scheme

Apparently, Great Britain must take inspiration from France's and Germany's "scrappage scheme" if they want to get rid of the clunkers in people's yards and boost the automotive industry, the Society of Motor Manufacturers and Traders (SMMT) told European Commission member states this week.

According to The Telegraph, SMMT  has already submitted a proposal detailing a scrappage scheme for the UK to Lord Mandelson’s Department for Business earlier this month. The proposed scheme will allow owners of cars and vans older than nine years old to get rid of their clunkers n return for a £2,000 cash incentive on the condition they buy a new vehicle.

It seems that the scheme is badly needed for the UK automotive market as sales for new vehicles heavily dropped in the last period. In addition, the scrapping bonus is also believed to reduce dioxide emissions as older and more polluting vehicles will be pulled off the roads.

“It is vital that car buyers are given the confidence to buy now and a scrappage incentive scheme is a clear signal which has already proved successful in other EU member states," explained Paul Everitt, the chief executive of the SMMT at this week's European seminar.

"The UK government must align with Europe and take immediate action to protect its automotive sector,” he added.

In addition, given such a scheme, the SMTT expects that owners of up to 250,000 cars and 30,000 vans could benefit from such a bonus in the UK.

As we have already told you, this kind of scrappage schemes were already adopted by the French and German governments. As for Germany's scrapping bonus, it has been speculated that the scheme could turn into organized crime. Hopefully, this won't apply to Britain as well.
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