Call for Car Scrappage Scheme
Posted by seetaludeshi | Under Motoring and Travel News Wednesday Apr 8, 2009As the sales of new cars plunged 30.5%, the car industry are lobbying for a scrappage scheme in this months budget. According to The Guardian despite the new arrival of 09 plates, new cars registered fell to 313,912 cars last month from a year ago. This means from January to March car sales were down to 480,358.
Paul Everitt, SMMT Chief Executive has said “March new car registrations are a barometer of confidence in the economy, from businesses and consumers alike. The fall in the market shows that Government needs to do more to boost confidence.”
The Car Scrappage Scheme has been successful in a dozen European countries, including Germany, France and Italy, which have lifted demand. Germany’s sales have risen by 40% in March after the start of the scheme offering €2500 to consumers who swap their cars that are older than 9 years old for new efficient models. The scheme has been so popular it has been extended until the end of the year.
The slump has affected all cars, but once again the mini segment surged 84% in March following the arrival of new models. The Ford Fiesta has been the best selling for the 5th month in a row.
I think this car scrappage scheme is just another government excuse to bail out car manufacturers. If more cars are sold, more car tax, more tax on fuel, more tax on the actual sale of the car!