Let's dump this scrappage idea !

Brian Spratt · March 24th, 2009, 11:42 AM

I was sorry to seee that Motor Daily is the latest to be seduced by the car companies' unrealistic proposals for a UK car scrappage programme; where owners of older, supposedly 'polluting', cars received a fee (or bribe) when they scrap they car which they can use when purchasing a new one.

Consider the following:

80% plus of the cars sold in the UK are imported, therefore any cash (taxpayers’ cash) will go to foreign factories.

If you are in the market for a new car a dealer will give you a discount at least equal to the potential scrappage fee; do you think the dealers will still give the discount if you turn up with your voucher? I think not!

The driver of an older (apparently more polluting) car will not be in the market for a new car anyway, and probably won’t want or can’t get the finance necessary to buy a new one.

The car makers claim about environmental benefits don’t stack up. Check out the report from industrial consultations McKinsey, or the Transportation Research journal, for instance. Both hotly dispute the accuracy of car companies’ figures. Don’t be hoodwinked by ‘green’ claims from the car makers. Better, in fact, to help car owners regularly service their current vehicles, providing employment for technicians and the economic stimulus that is being called for.

Off the 800,000 people employed in the UK motor industry, 600,000 are in the sector which services, maintains and repairs vehicles which are already on the road. Any scrappage programme is going to have a serious effect on their employment prospects.

Finally, there is a global annual production capacity for 93 million vehicles and a best estimate demand of 60 million (EU figures) no amount of scrappage programmes is going to fill that gap, and why should they? Those figures are a demonstration of car companies failing to operate in a logical economic manner, and they’re asking us all for a handout to carry one!

It’s a misuse of taxpayers’ pounds to purchase and crush perfectly serviceable vehicles, and it’s a nonsense to think it will meet any long term economic goal for the UK. As a sensible idea it is a non-runner!

Regards
Brian Spratt
Chief Executive
Automotive Distribution Federation

March 24th, 2009, 11:42 AM	#1 (permalink)
Brian Spratt Junior Member Join Date: Mar 2009 Location: Birmingham Posts: 1	Let's dump this scrappage idea ! I was sorry to seee that Motor Daily is the latest to be seduced by the car companies' unrealistic proposals for a UK car scrappage programme; where owners of older, supposedly 'polluting', cars received a fee (or bribe) when they scrap they car which they can use when purchasing a new one. Consider the following: 80% plus of the cars sold in the UK are imported, therefore any cash (taxpayers’ cash) will go to foreign factories. If you are in the market for a new car a dealer will give you a discount at least equal to the potential scrappage fee; do you think the dealers will still give the discount if you turn up with your voucher? I think not! The driver of an older (apparently more polluting) car will not be in the market for a new car anyway, and probably won’t want or can’t get the finance necessary to buy a new one. The car makers claim about environmental benefits don’t stack up. Check out the report from industrial consultations McKinsey, or the Transportation Research journal, for instance. Both hotly dispute the accuracy of car companies’ figures. Don’t be hoodwinked by ‘green’ claims from the car makers. Better, in fact, to help car owners regularly service their current vehicles, providing employment for technicians and the economic stimulus that is being called for. Off the 800,000 people employed in the UK motor industry, 600,000 are in the sector which services, maintains and repairs vehicles which are already on the road. Any scrappage programme is going to have a serious effect on their employment prospects. Finally, there is a global annual production capacity for 93 million vehicles and a best estimate demand of 60 million (EU figures) no amount of scrappage programmes is going to fill that gap, and why should they? Those figures are a demonstration of car companies failing to operate in a logical economic manner, and they’re asking us all for a handout to carry one! It’s a misuse of taxpayers’ pounds to purchase and crush perfectly serviceable vehicles, and it’s a nonsense to think it will meet any long term economic goal for the UK. As a sensible idea it is a non-runner! Regards Brian Spratt Chief Executive Automotive Distribution Federation


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