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Car manufacturers given a quota as scrappage scheme closes

Car manufacturers signed up to the Governments car scrappage scheme are to be given quotas, as it draws to an end next month.

The Department for Business, Innovation and Skills has revealed that it will soon be limiting the amount of orders car manufacturers can make under the scrappage scheme.

With enough funding for 82,000 cars remaining, and three quarters of the budget already used, BIS hopes the plan will ensure a smooth end to the scrappage initiative as consumers rush to take advantage of it.

Business secretary Lord Mandelson said: With limited orders as we near the close of scrappage there is a risk of disappointment for car buyers. I would urge people who are still keen on taking part to put their orders in as soon as possible as time is running out.

Industry figures have reflected the success the scheme has already had, boosting both car sales over the past few months and maintaining jobs in car production. We expect the impact of the scheme to continue to be felt into 2010 as deliveries will continue after the scheme closes.

The quota will be based on consumer brand popularity, with the more popular manufacturers given higher quotas. According to the Society of Motor Manufacturers and Traders, the most popular car model under the scrappage scheme in 2009 was the Ford Fiesta. It is thought the quota system will come into effect in the next two to three weeks depending on how quickly orders are placed.

BIS confirmed to MRW that the scrappage scheme will not be extended.

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