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Scrappage scheme lifts car orders Scrappage scheme lifts car orders
(41 minutes later)
The UK's car scrappage scheme has started to have a "positive impact" on the industry as new car sales fell at their slowest rate for almost a year.The UK's car scrappage scheme has started to have a "positive impact" on the industry as new car sales fell at their slowest rate for almost a year.
New car registrations fell by 15.7% in June compared with the same month last year, smaller than May's 25% drop.New car registrations fell by 15.7% in June compared with the same month last year, smaller than May's 25% drop.
The Society of Motor Manufacturers and Traders (SMMT) said 176,264 units were sold during the month.The Society of Motor Manufacturers and Traders (SMMT) said 176,264 units were sold during the month.
The scrappage scheme, which offers a £2,000 incentive to scrap cars over 10 years old, came into effect on 18 May.The scrappage scheme, which offers a £2,000 incentive to scrap cars over 10 years old, came into effect on 18 May.
'Steady progress'
Half of the money will be paid by the government and half by the car industry.Half of the money will be paid by the government and half by the car industry.
TOP SELLING CARS IN JUNE 1. Ford Fiesta2. Ford Focus3. Vauxhall Corsa4. Vauxhall Astra5. Peugeot 2076. Mini7. Volkswagen Golf8. Ford Mondeo9. Vauxhall Insignia10. BMW 3 Series 'Steady progress'
"We are beginning to see the positive impact of the scrappage scheme translate into new vehicle registrations," said Paul Everitt, chief executive of the SMMT."We are beginning to see the positive impact of the scrappage scheme translate into new vehicle registrations," said Paul Everitt, chief executive of the SMMT.
TOP SELLING CARS IN JUNE 1. Ford Fiesta2. Ford Focus3. Vauxhall Corsa4. Vauxhall Astra5. Peugeot 2076. Mini7. Volkswagen Golf8. Ford Mondeo9. Vauxhall Insignia10. BMW 3 Series
"SMMT expects the pace of improvement to increase in the coming months, but we can already see the industry making steady progress on the long road to recovery.""SMMT expects the pace of improvement to increase in the coming months, but we can already see the industry making steady progress on the long road to recovery."
Although June was the 14th month in a row to see sales of new cars fall, it was the smallest monthly decline since July 2008.Although June was the 14th month in a row to see sales of new cars fall, it was the smallest monthly decline since July 2008.
The number of new cars sold in the UK in June was 176,264, about 15% more than the 153,000 figure predicted by the SMMT in April.The number of new cars sold in the UK in June was 176,264, about 15% more than the 153,000 figure predicted by the SMMT in April.
Private buyer registrations were up 3.9% during the month, the first rise in this sector since November 2007.Private buyer registrations were up 3.9% during the month, the first rise in this sector since November 2007.
And demand for small cars picked up - with the "mini" segment showing 145.4% growth and "superminis" taking a record 37.2% share of the market.And demand for small cars picked up - with the "mini" segment showing 145.4% growth and "superminis" taking a record 37.2% share of the market.
'Stabilisation''Stabilisation'
According to Ian Robertson, BMW's group marketing director, the crisis that has hit the motor industry appears to be over.According to Ian Robertson, BMW's group marketing director, the crisis that has hit the motor industry appears to be over.
"From the first quarter of the year to the second quarter of the year, there was a stabilisation of a negative trend," he said."From the first quarter of the year to the second quarter of the year, there was a stabilisation of a negative trend," he said.
BMW has introduced cheaper entry models for both its BMW and Mini brands in order to benefit from the government's scrappage scheme.BMW has introduced cheaper entry models for both its BMW and Mini brands in order to benefit from the government's scrappage scheme.
"We've seen an improvement in sales," he said, adding that the 1.5 millionth Mini has just rolled off the production line at its factory in Cowley, near Oxford."We've seen an improvement in sales," he said, adding that the 1.5 millionth Mini has just rolled off the production line at its factory in Cowley, near Oxford.
However, Mr Robertson said the government had missed an opportunity by its failure to link the scheme to car emissions.However, Mr Robertson said the government had missed an opportunity by its failure to link the scheme to car emissions.
"The could have added a CO2 target, which would have prevented some of the cheap and cheerful cars, which aren't necessarily that environmentally friendly, from qualifying," he said. "They could have added a CO2 target, which would have prevented some of the cheap and cheerful cars, which aren't necessarily that environmentally friendly, from qualifying," he said.