Retail Motor Industry Federation joins SMMT in calling for pay-to-scrap vehicle scheme
19 March 2009

The Retail Motor Industry Federation (RMIF) has joined the Society of Motor Manufacturers and Traders (SMMT) in calling for the implementation of a pay-to-scrap scheme in the UK as soon as possible.

The proposed scheme would involve a government subsidy of up to £2000 for people trading in a car at least nine years old for a new car, or a secondhand one under 12 months old.

Read more on the planned trade-in incentive scheme

“The fact that the government is continuing to seriously consider the implementation of a vehicle scrappage scheme in the UK is encouraging,” RMIF director Sue Robinson said. “But it must act soon as the lack of action could have serious long-term consequences for the motor industry in the UK”.

Some estimates suggest that a scrappage scheme could boost the UK car market by up to 250,000 units annually.

Why the scrappage scheme won't help the car industry

Critics, however, suggest that this would only be a significant boost for the retail industry, since the UK car manufacturing sector exports 86 per cent of its output.

Matt Rigby

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