Ford and Honda delay introducing car-scrappage scheme
LONDON - Ford and Honda have delayed their participation in the UK car scrappage scheme until the funding of the programme becomes clearer.
Unlike in other European countries such as Germany, where the government is providing the entire consumer grant for an old vehicle, the UK scheme specifies that manufacturers must provide half of the £2,000 grant themselves. The UK government also insists that the entire £1,000 sum is provided by manufacturers, rather than dealers.
The Society for Motor Manufacturers and Traders (SMMT) and Department for Business, Enterprise & Regulatory Reform (BERR) are in discussions looking at how to resolve the conflict between car makers and government.
A Ford spokesman said that it was in consultation with dealerships to iron out funding issues which only became apparent at a late stage, but expects to resolve the situation within 24 hours.
Meanwhile, a Honda spokesman confirmed that the manufacturer is committed to the scrappage scheme and taking orders from consumers but is asking dealers to hold back from registering new vehicles.
Under the scrappage scheme, UK consumers are entitled to a grant of £2000 for the purchase of a new car if they trade in a 10-year-old vehicle they have owned for a minimum of 12 months.
Ford
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