Government answers 50 industry concerns
11 May 2009

Scrappage will go ahead as planned next Monday after the government answered the car makers' list of 50 concerns over the implementation of the scheme.

Following the announcement last month that the UK would get scrappage, the Society for Motor Manufacturers and Traders (SMMT) called an urgent meeting with ministers to thrash out the finer details of the scheme.

Concerns centered on how dealers and manufacturers would process the influx of old cars.

Car makers sign for scrappage

Scrappage to be restricted?

But the SMMT told Autocar today it was satisfied with the government’s answers and is confident scrappage can be implemented successfully.

Tomorrow is the deadline for car makers to sign up if they want to be part of the scheme from its start next Monday, although they can join at a later date with a month’s notice.

The SMMT has confirmed there will be a cap on cars taking three months or more to be delivered. It was argued that this would restrict a number of cars, such as the Ford Focus RS, from the scheme.

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The SMMT said that the restriction was necessary as the government needs to keep track of how many cars are on order, so that the £300m set aside for the scheme does not run out before cars are delivered.

One concern raised by the industry surrounded cars which would run out of MOT days before they ordered a new car.

The government initially suggested that all cars would require a valid MOT to be included. Ministers have now compromised, giving a two-week grace period before an order is made.

An SMMT spokeswoman said: “Most manufacturers support the scheme, we are expecting the vast majority to sign up.”

The Department for Business, Environment and Regulatory Reform (BERR) which is handling the scrappage scheme declined to name the manufacturers that had signed up when contacted by Autocar on Wednesday. Instead, it said it will name the manufacturers when it formally announces the scheme on Monday.

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