News is filtering down through the industry that a scrappage plan – in contrast to my recent post – is a sure thing for the Budget, due to be announced this Wednesday (22 April).
And while huge swathes of the car industry (SMMT, RMI, the AA, Road Haulage Association, RAC Foundation, manufacturers and motoring media) are stepping up their calls for a scrappage scheme, there’s been some fairly vocal opposition from those connected with the used-car industry.
Those with a vested interest in the used car industry – including some dealerships, auctioneers, car parts and car maintenance outfits – will be waiting to hear the worst on Wednesday. For them a scrappage scheme could be bad news indeed.
That all depends on how extensive the scheme is, how far the government is prepared to bankroll the scheme and how wide the uptake is.
The BVRLA, which represents rental and leasing providers, wants the government to incentivise clean used cars and vans alongside new models. Fleet body AFCO has similar doubts.
Classic Car Weekly has launched a petition to lobby against the introduction of a scrappage scheme, probably mindful of the classic and rare models that are likely to meet their doom at the hands of the scheme in favour of a new Hyundai i10.
Demand for used cars, and therefore car parts, seems likely to plummet in the short-term. For this reason the Automotive Distribution Federation is furiously lobbying against scrappage.
Meanwhile British Car Auctions (BCA) seems mindful of the long-term implications of the scheme, and the fragility of the boom in the used car trade that the downturn has inspired.
So, those relevant parts of the industry will be hoping that scrappage is extended to include used vehicles and complemented by other generic car stimulus measures.
Green groups are split on the possible benefits – an indication of the difficulty in working out exactly how ‘green’ a scrappage scheme would be, although I’m far from convinced of any benefits and some figures seem hard to dispute.
So, while one half of the industry is pushing for the scheme to guarantee its survival, the other half is dead set against the idea for the same reasons. It’s another indication of the tightrope of introducing scrappage, and getting it as right as it can be.
• Read all of our Budget 2009/Scrappage coverage at MotorTorque.
• Image by hessiebell via Creative Commons
Tags: Scrappage
[...] pros and cons of a scrappage scheme have been debated elsewhere, as has the question of whether it’s likely [...]