UK adopts vehicle scrappage incentive, U.S. still debating

Posted: Apr 22, 2009
Filed under: Industry News

Britain is the latest European country to adopt a new incentive to entice consumers to scarp older vehicles in an effort to boost new vehicle sales. Meanwhile, on the stateside, the incentive is being stalled in Congress.

Chancellor Alistair Darling announced that when a vehicle more than 10 years old is scrapped, the government will offer a £2000 ($2,898 USD) discount on a new car. The new incentive will run from mid-May until March 2010.

There will be £300 million ($435 million USD) funding for the program; however, the incentive will be split between automakers and the UK government. The government will provide £1000 while the automaker will pay the other £1000.

Manufacturers must sign-up to be a part of the incentive. So far, Citroen and Hyundai have both committed to signing up. Ford, Volvo and Toyota have also shown their interest in joining.

- By: Kap Shah

Source: AutoCar

Related Posts:

  1. Hyundai considers extending Assurance incentive program
  2. Toyota doesn’t want any U.S. funding for electric-vehicle development
  3. Chrysler discontinuing “Double CA$H For Your Old Car” incentive as inventory runs out
  4. Chrysler sees dealership traffic increase as a result of Cash for Clunkers incentive
  5. UK scrappage program accounts for 35,000 new sales

  • neil
    I agree with you that the euro market is very different to the US.

    but in essence this plan puts the decision of who to "bail-out" in the hands of the consumer. And we all know that the current Pelosi/Reid government is against giving the consumer the choice - the want control or should I say "nationalize" companies.
    It is like the bank bailout, the 700Bil should have been given to mortgage holder (approx. 95 mil in the US). so each mortgage holder would have got about 7000 each anf there would have been 4 basic outcomes
    1. your already in foreclosure so blow the money on products - stimulating the economy
    2. You owe the bank money - give it to them and stop foreclosure - money goes to th ebank but saves a family in the process
    3. Yuor up to date with your mortgage so pay off your credit cards with the money - money goes to the banks
    4. your up to date with everything so go spend th emoney on a new car - stimulating the economy
    Any way you look at it, giving "our" money back to us so we the consumers can decide which companies succed or fail is much better than the bailout policies currently being used
  • zermatt
    Europe does not have the incentive problems that the U.S. has. American car buyers (especially on domestic brands) have become accustomed to only buy when their are incentives in place. If the U.S.Government adds to the incentive additction it could screw up sales even worse.

    Why would anyone buy a car now with the government about to make a huge contribution to the reduction of car prices in the future?
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