Kia scrappage ration

With the last portion of funds due to be divvied up between manufacturers in the dying days of the scheme, carmakers’ next hurdle is to work out how to divide those funds up between their network.

Cole said: ‘It is clear that we will need to allocate scrappage allowances to our dealer network, but how we do that is still unclear. We just don’t have any choice.

‘We’ll be making decisions on how we divide that between our network.’

Cole said these decisions would be made late next week when he gets back to the UK after the Venga and Sorento launch.

‘It’s not easy,’ added Cole. ‘It’s a very difficult thing to decide and I’d rather leave it to customers to make that choice – that means scrappage sales go where demand is.

‘I don’t want a dealer to be at a disadvantage because it can’t sell a car under the scheme – but it’s clear we are going to have to manage that from a manufacturer level on an allocation basis.

‘Scrappage went so well in the early days that many thought the funds would just be used up – and there’s still a chance that could happen.

‘But the problem is when you get towards the end of a scheme like this the interest picks up again and brands have a renewed push for sales.’

VENGA SALES

Cole was also confident the new Venga will be available in time for dealers to sell some in the tale-end of scrappage.

Rules state carmakers must deliver vehicles ordered under the scheme within four months and the first Vengas will be hitting showrooms on February 1.

‘I wondered whether we would sell any Venga under scrappage,’ said Cole. ‘And I think that we will, but that’s if we can deliver them in the four month time frame. I’m pretty confident we can do that.’

How do you think car manufacturers should allocate their portion of scrappage funds to dealers? Get in touch, or leave your comments below to let us know.

Exclusive by JAMES BAGGOTT