Green aid needed NOW
April 17th, 2009 by Richard Aucock
CAR dealers have welcomed the Government’s electric car incentives – but say short term aid is needed too.
RMIF director Sue Robinson today demanded more immediate measures… such as, a vehicle scrappage scheme.
‘In the short term the industry needs more direct support,’ she said.
‘With consumer confidence low, the adoption of a car scrappage scheme would give a boost to the new car market, and enable motorists to trade in their old cars for new, less polluting vehicles.
‘Consumers will look to new cars again, given the right impetus, and the RMIF is continuing to lobby for the introduction of a scrappage scheme could help revive car sales, and remove high-polluting cars from the road at the same time. This scheme is widely supported by car retailers.’
She did admit that the £250 electric car strategy would support the growth of the electric car industry – indeed, ‘this scheme could help the UK build the infrastructure and market for electric cars.’
But more immediate aid is needed before that, she pleased. All eyes will be on Alistair Darling’s red box next week…
 |  |  |
April 20th, 2009 at 10:59 am
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?
I 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