RMIF director Sue Robinson says a UK scrappage scheme is the catalyst needed to kick start sales.
Writing exclusively today for Car Dealer, Robinson backs our Scrap Scheme Now campaign and points to its successful introduction in some European countries.
Here, she makes the case for scrappage…
CAR sales are significantly down on a year ago as a result of the ongoing economic downturn as many consumers are putting off buying a new car until there is an upswing in the economy.
A catalyst is required to kick-start consumer confidence, and revive new car sales in the UK.
The RMIF believes that a vehicle scrappage policy will have the dual benefit of reviving the new car market, while also removing older, high-polluting cars from the road at the same time.
This could be a good move for the UK. Scrappage policies have been successfully adopted by a number of European countries in the last few years, including Ireland, France, Germany, and Spain and we believe that adopting the policy could help move the economy in the right direction.
The RMIF and the SMMT both presented papers to Government in February that put the case for a scrappage scheme in the UK that mirrors those successfully adopted in other EU states.
The Government must declare their intentions as soon as possible if scrappage is to be adopted, and include motor industry professionals to provide their expertise during the planning and implementation of the scheme.
Sue Robinson, Director, Retail Motor Industry Federation
More on Scrap Scheme Now: click here
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The government need to pass the scrappage scheme now ! Any potential car buyers are just waiting before they take the plunge to see if it gets passed, Gordon Brown, please get on with it and get our industry going again. lets put the joy back into motoring. Chris Green – sales director – motoring.co.uk
We totally agree Chris. They really shouldn’t wait until the budget – the longer they delay the more harm it will do.
The government can either chose to support the Automotive manufacturers and their suppliers directly through loans, guarantees & investment (which doesn’t necessarily stimulate demand, just keeps the beast running) or encourage consumers through the scrappage scheme to stimulate the demand and drive cash back to the manufacturers through increased sales. Inevitably, the former may be necessary in some cases to ensure survival (of those that can operate efficiently) however direct consumer incentivisation is a sure way to kick start the flow of customers back through the dealers doors – the sooner the better!
Here, here! Who wouldn’t want to chop in their smokey old diesel when there’s a £2,000 carrot on offer? And who wouldn’t delay a purchase if there was even a hint it was coming….
The German scheme is being used as a model by the industry – sales there are booming, and all the execs I speak to say it PROVES scrappage schemes do the business. Not a second too soon, say the car bosses…
No, you are all quite wrong.
Well, I am sure the Retail Motor Industry Federation would love taxpayer subsidy, just as the Retail Fish and Chip Shop Association would love taxpayer subsidy on Fish and Chips!
Why on earth should the UK taxpayer subsidise scrapping perfectly good 9-year old cars, with lots of life left in them?
It will ruin businesses of many motor traders (typically new-car retailers are members of the RMIF, older used car dealers are not). Someone who deals in older cars will see their sales market disappear in the blink of an eye.
Disturbingly, “Automotive Management” magazine forums have included suggestions by some people in the motor trade that stockpiling old cars and registering them in the names of friends and family is a smart move (to trade them in against new stock in exchange for subsidy). I suggest this scheme will expose corruption and bad practise in the motor trade on a large scale. How will the industry deal with future reports of “greedy” dealers manipulating a scrappage scheme for self-benefit?
The logo used by this magazine (for the scheme) showing a crappy old bodyshell is incorrect. That unroadworthy shell would not be something that could be scrapped. Only roadworthy cars would ever be included.
Professor Garel Rhys, THE academic voice of the UK Motor Industry says: “Dealers will benefit from this scheme, but are likely to take advantage of the scheme to reduce the discounts they are currently offering. As a result, it is almost certain to push up the average retail cost of cars”
That is what Sue Robinson and her organisation are excited about, let’s be clear. They want to profit from this. Taxpayers money will flow overseas as there is no British owned car manufacturer to benefit! 80% of new car sales are imports!
In addition, the cost of scrapping cars will go through the roof as capacity does not exist for this volume, and companies raise scrapping charges.
What has happened in 2009 is that people have STOPPED buying new cars precisely because Sue Robinson, and Paul Everitt of the SMMT and others have been touting this scheme. Who in their right mind would buy a new car when the industry are promising an imminent £2000 windfall? These two industry heads have presided over a disastrous policy, waiting for UK taxpayer handouts. They should both resign.
This scheme will distort the market, reward cheating and corruption, increase the prices of cars… in the same way that subsidising Estate Agents to rescue the housing market would be folly. Who, with a 9-year old car (W-reg) will trade in for a new one? The scrappage scheme is madness, stupidity and is sheer greed.
Ling Valentine