Citroen has become the first car manufacturer to signal its intent to join the UK car scrappage scheme.
Xavier Duchemin, managing director of Citroën UK told the whatcar.com website: "It's good news for the industry and the car buyer and we’ll support it.
"Finding £1000 on a car like a C1 will be difficult, but we’ll find a way.
"We need to think about the impact on our existing scrappage deals. It's a complicated way of introducing a scrappage scheme and why it's not the same as in Germany, France and the rest of Europe I don’t know...
"Our existing scrappage deals have been hugely successful – so far in April we are 10% up on last year in a market that's still 30 per cent down."
Hyundai has also indicated it will sign up. MD Tony Whitehorn said: "Although we had hoped for a £2000 contribution from the government, £1000 will help drive business through our doors at this time of recession.
"We will strive to match this price or an even higher price once the details have been confirmed."
Kia gave the scheme a cautious welcome, but criticised the part-government, part-manufacturer funding proposal and stopped short of saying it would definitely sign up to it.
Paul Philpott, managing director of Kia UK, said: "Kia welcomes the government’s positive response to the difficult times facing the new car market but I am personally disappointed that our chancellor is only going half-way compared to other European governments.
"The devil will be in the detail and I am sure the Society of Motor Manufacturers and Traders will be looking for early meetings with the Treasury to discuss this.