Ford’s European sales boss, Ingvar Sviggum, has joined the SMMT in calling for a government subsidy of up to £2200 for new car buyers who trade in an old car for scrap.
“It’s clear that a scrappage programme might work in the UK based on what we’re seeing in other European markets,” said Sviggum.
Germany’s government is paying the equivalent of £2200 to owners who trade in cars over nine years old when they buy new. This has helped to keep the decline in Germany’s new car sales to less than half that of the UK.
“A range of between £1300 and £2200 seems to be about the right level,” said Sviggum.
France and Italy are the other two major European car markets with government-funded scrappage incentives. Both offer £1300 to encourage owners of more polluting and less safe cars to trade in against a new model.