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ReprintsUK calls for scrappage scheme after new-car sales fall 21.9% in Feb.
John Revill
Automotive News Europe
March 5, 2009 10:35 CET
The UK urgently needs a scrappage incentive, the country's auto industry organization said after new-car sales fell by more than a fifth year-on-year in February. The Society of Motor Manufacturers and Traders (SMMT) appealed to the UK government to "increase the pace" for a scrappage scheme after reporting that February sales were down 21.9 percent to 69,190. Sales in the first two months of the year are down 28.17 percent to 166,446. Paul Everitt, SMMT CEO, said the UK urgently needed scrappage incentives similar to Germany and France to stimulate the market. "Other European countries have been proactive in assisting their automotive industries," he said. Encouraged by a 2,500-euro bonus for scrapping cars older than nine years and tax changes that favor fuel-efficient models, Germans have been rushing to showrooms. New-car sales in Germany rose by 21 percent to 278,000 in February helped by government scrappage incentives, the VDA industry association said earlier this week. Everitt said it is "imperative" that the UK government speedily agrees to proposals for a scrappage scheme and boosts access to finance and credit. The SMMT now expects the UK market to fall to 1.72 million units this year, from 2.13 million in 2008. |
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