More than three quarters of the budget for the Government's car scrappage scheme has been exhausted according to figures released yesterday.
The remaining funding will cover just over 80,000 new vehicles with consumers looking to take advantage of the scheme urged to do so soon.
As the scheme enters its final stages the Department for Business will allocate order quotas to manufacturers. The quota system will be based on brand popularity and will help ensure a smooth closing of the scheme.
“I’m pleased to see that the scheme has been taken up by so many people, supporting our automotive manufacturers through a very difficult time,” said Business Secretary, Lord Mandelson. “With limited orders as we near the close of scrappage there is a risk of disappointment for car buyers. I would urge people who are still keen on taking part to put their orders in as soon as possible as time is running out.
“Industry figures have reflected the success the scheme has already had, boosting both car sales over the past few months and maintaining jobs in car production. We expect the impact of the scheme to continue to be felt into 2010 as deliveries will continue after the scheme closes.”
The UK scheme, with £400m from Government and matched funding from car manufacturers, is intended to provide immediate support on a short-term basis to boost the car industry and its supply chain during the downturn. It has also removed older vehicles from the road and encouraged consumers to invest in new, safer, and potentially more environmentally friendly models.
