6:50 pm, March 4, 2009
THE government should implement a scrappage scheme to send a clear signal to car buyers.
That’s the word from a Kia chief here at Geneva, who added that ‘if it’s announced today, it would have to start tomorrow’.
‘We can’t have the situation as we saw with VAT last year, where there’s an intermediary period in between any announcement,’ he said.
This would severely destabilise an already fragile new car market, and send out confusing signals to car buyers.
A new car scrappage scheme, encouraging sales of low-emission models, would have a very positive effect on the market, he said.
‘It would get people thinking they can (still buy new cars) – it would give the market confidence.
‘Even if people don’t ultimately buy, it would create awareness, get people thinking about new cars again. It would get people into showrooms, which is crucial.’
The Kia spokesman said the company tentatively expects first signs of a new car market recovery by the middle of the year. But added that the Government could hasten this if it wanted.
‘We would see a much faster recovery if a new car scrappage scheme was introduced.
‘It is in the Government’s hands.’
by RICHARD AUCOCK
