Ford counting on UK car scrappage scheme
Inspired by the success that Germany has seen in boosting new car sales (up by over 20% in that country), the Society of Motor Manufacturers and Traders in the United Kingdom drafted a plan and submitted it to lawmakers in the UK that recommended a car scrapping scheme similar to the one recently instituted by their European neighbors.
Apparently, Ford is so sure that the UK government will go along with the plan that it's adjusted its projected sales figures upward in anticipation of the plan's impact on the remaining months of the year. Ingvar Sviggum, Ford Europe sales chief, says, "I really expect that the British will introduce a scrappage scheme," and Autocar reports that other European automakers are also betting on it.
In February, the UK saw a 22 percent drop in new car sales. Some analysts are predicting that March will be even worse, in part due to the expectation that a vehicle scrapping plan is imminent. Sounds like that may be exactly the case.
[Source: Autocar | Photo: Patrick Dockens]
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