Confusion clouds scrap

Time 12:22 pm, May 17, 2009

scrap-qaTHE car scrappage scheme – due to start on Monday – could be delayed by a ‘cock-up’, it has been reported.

Car manufacturers have complained to the government about missing paperwork that means thousands of cars can’t be released on time.

The confusion – according to the Daily Mail – is said to centre around VAT and industry leaders have already branded it a fiasco.

The paper said most carmakers had warned they will not be delivering cars on time with Ford, Vauxhall, VW and Fiat some of the worst affected.


A spokesman for GM – which owns brands including Vauxhall, Saab and Chevrolet in the UK – told Car Dealer vehicle handovers were in ‘jeopardy’.

‘The programme is not up and running yet and there have been a lot of last minute challenges from the government including VAT challenges,’ said the spokesman.

‘It’s not guaranteed that all manufacturers will stay in and vehicle handovers are in jeopardy.’

And Vince Mann, director of the Hendy Group of car dealerships which includes Ford, Honda, Kia and Mazda, told the Daily Mail: ‘It’s a fiasco. A complete Government cock-up.

‘They haven’t sorted out the paperwork to allow us to release the cars to customers.’

Details about how the scheme will run were only issued by the government on Thursday and car manufacturers are believed to have a number of reservations.

However, a spokesman for the Department for Business denied there was a paperwork problem and said the scheme would go ahead on Monday as planned.


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James Baggott's avatar

James is the founder and editor-in-chief of Car Dealer Magazine, and CEO of parent company Baize Group. James has been a motoring journalist for more than 20 years writing about cars and the car industry.

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