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Scrappage scheme lifts car orders | Scrappage scheme lifts car orders |
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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. |
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. |
'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. |
"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. |