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| Scrappage deal 'will boost sales' | Scrappage deal 'will boost sales' |
| (about 3 hours later) | |
| From today, drivers with cars that are more than 10 years old can scrap them in return for a discount of £2,000 off a new model. | From today, drivers with cars that are more than 10 years old can scrap them in return for a discount of £2,000 off a new model. |
| Business Secretary Lord Mandelson said the £300m scheme would "provide a boost to the industry and kick-start sales". | Business Secretary Lord Mandelson said the £300m scheme would "provide a boost to the industry and kick-start sales". |
| But critics say it is not generous enough and does nothing to encourage the take-up of low emission cars. | But critics say it is not generous enough and does nothing to encourage the take-up of low emission cars. |
| New UK car sales were down 28.5% in the first four months of 2009 compared with the previous year. | New UK car sales were down 28.5% in the first four months of 2009 compared with the previous year. |
| Earlier this month, research by car price guide Parker's found that of 600 people questioned, 81% said they would not be taking advantage of the scrappage deal. | Earlier this month, research by car price guide Parker's found that of 600 people questioned, 81% said they would not be taking advantage of the scrappage deal. |
| 'Flood of enquiries' | 'Flood of enquiries' |
| Under the scheme, owners who scrap their old cars will receive a £1,000 subsidy from the government on a new one. | Under the scheme, owners who scrap their old cars will receive a £1,000 subsidy from the government on a new one. |
| Manufacturers will provide at least a similar discount, and so far 38 have signed up. | Manufacturers will provide at least a similar discount, and so far 38 have signed up. |
| Such tactics have already been tried in other countries. In Germany, for example, a scrappage scheme helped boost new car sales by 40% in March. | Such tactics have already been tried in other countries. In Germany, for example, a scrappage scheme helped boost new car sales by 40% in March. |
| The UK scheme doesn't prevent motorists part-exchanging an old, small model for a brand-new gas guzzler Andy Atkins, Friends of the Earth | The UK scheme doesn't prevent motorists part-exchanging an old, small model for a brand-new gas guzzler Andy Atkins, Friends of the Earth |
| Lord Mandelson said that since the announcement of the scheme in the Budget there had been "a flood of enquiries from customers". | Lord Mandelson said that since the announcement of the scheme in the Budget there had been "a flood of enquiries from customers". |
| Meanwhile, motoring organisation the AA said it could pump as much as £2bn into the UK's car sector. | Meanwhile, motoring organisation the AA said it could pump as much as £2bn into the UK's car sector. |
| And it claimed that even if only 1% of motorists take it up, it will be over-subscribed. | And it claimed that even if only 1% of motorists take it up, it will be over-subscribed. |
| The AA also carried out a poll of 15,000 members which found that the offer was most popular with pensioners, drivers aged 18 to 24 and those in semi-skilled and unskilled professions. | The AA also carried out a poll of 15,000 members which found that the offer was most popular with pensioners, drivers aged 18 to 24 and those in semi-skilled and unskilled professions. |
| President of the AA Edmund King said: "In effect the £2,000 incentive can act as a deposit against loans for many less-well-off drivers." | President of the AA Edmund King said: "In effect the £2,000 incentive can act as a deposit against loans for many less-well-off drivers." |
| He also said the scheme would "transform the chances of survival in a crash for thousands of car owners" whose current old cars offer substantially less protection than newer models. | He also said the scheme would "transform the chances of survival in a crash for thousands of car owners" whose current old cars offer substantially less protection than newer models. |
| But Friends of the Earth executive director Andy Atkins said the scrappage scheme was "a lost opportunity". | But Friends of the Earth executive director Andy Atkins said the scrappage scheme was "a lost opportunity". |
| "A well-designed scheme could have played a limited role in cutting emissions from our roads," he said. "But, unlike some other countries, the UK scheme doesn't prevent motorists part-exchanging an old, small model for a brand-new gas guzzler." | "A well-designed scheme could have played a limited role in cutting emissions from our roads," he said. "But, unlike some other countries, the UK scheme doesn't prevent motorists part-exchanging an old, small model for a brand-new gas guzzler." |
| Are you planning to take advantage of the scheme? Do you work in the car industry? Will this scheme help boost sales? Send us your comments using the form below. Do you have a question about the scheme? | |
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