cash for scrap
The UK’s ‘Cash for Scrap‘ new car incentive could not have come at a better time for Britain’s ailing motor industry, as figures for new car registrations in May 2009 show that sales fell by 24.8% in comparison to May 2008. This followed a similar drop in numbers reported for April, say the Society of Motor Manufacturers and Traders (SMMT) in a report today.
In the short time that the car scrappage incentive has been in operation in the UK, the SMMT reports that orders have already been taken for 35,000 new vehicles under the scheme.
Similar incentives in other European countries, particularly in Germany have been hugely successful in keeping limited production lines working, albeit at a greater cost to the government than first envisaged, due to the incredible response of car buyers.
In the first five months of 2009 the volume of sales was down by 27.9% on the previous year at 289,598 units, with mini sized cars such as the top selling Ford Fiesta, the only sector to show an increase in growth, with new registrations up by over 50%.
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