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Case for vehicle scrap incentives presented to European Commission

Scrap metal traders will be encouraged to hear that a car manufacturing trade association has called for UK scrappage incentive schemes at the European Commission. The drop in car manufacturing activity has been a cause of concern for traders which supply material to the manufacturers as well as taking their scrap.

At a European Commission meeting last week (16 February), the Society of Motor Manufacturers and Traders repeated calls for a scrappage incentive scheme to boost the new vehicle market.

Earlier this month, the group submitted a proposal for a UK scrappage incentive scheme to the Department for Business, Enterprise and Regulatory Reform (BERR). It urged the Government to implement it as soon as possible. 

A trader in aluminium ingots told MRW: Rather than propping up the car industry with investment, it might be better to follow Germanys example. There they are giving money to consumers for their old cars to help them buy new ones. This is more useful and helps to drive demand.

The SMMTs proposed scheme would allow both cars and light commercial vehicles more than nine years-old to be scrapped in return for a £2,000 cash incentive towards a new or nearly new vehicle.

SMMT chief executive Paul Everitt said: Urgent action is needed to get consumers back into the showrooms and boost demand in the market. It is vital that car buyers are given the confidence to buy now and a scrappage incentive scheme is a clear signal which has already proved successful in other EU member states.

The UK government must align with Europe and take immediate action to protect its automotive sector.




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